I’m a Banking Expert: Make These 7 Changes To Your Habits To Build Wealth Faster

Banking — we all have to do it, but do we all know how to? It’s not really taught in school, and it can be difficult to navigate. GOBankingRates spoke with banking and finance experts to uncover some practical ways to make your banking work for you.

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First things first, you need to have a bank account. Michael Martino, head of Diverse Customer Segments for Consumer, Small and Business Banking at Wells Fargo , emphasized the importance of accessible banking services. “Having a bank account is a crucial first step towards building generational wealth, not just for managing daily expenses but for creating opportunities for the future,” he said.

With that in mind, here are seven changes you can make to your banking habits to build wealth faster .

Explore Affordable Bank Account Options

One of the first steps to building wealth is to make sure you have the right account for you. Martino pointed out a concerning statistic. “Many U.S. households lack traditional checking or savings accounts, and some rely on costly banking alternatives, which can lead to significant lifetime fees and a potential loss of $360,000 in generational wealth,” he said.

To address this issue, Martino suggested considering Bank On certified accounts. “Consider opening a Bank On certified account like Wells Fargo’s Clear Access Banking, which offers features like no overdraft fees and no monthly service fees for accountholders aged 13-24,” he shared. “These accounts are particularly beneficial for those with irregular payment schedules, providing a safe and reliable way to manage money.”

Whether it’s with a big bank like Wells Fargo or a smaller credit union, make sure your banking accounts have the options you need. Shop around before you commit to make sure you get the best deal. Not all accounts are created equal, and you’ll figure that out quickly when you start looking.

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Utilize Financial Education Resources

Knowledge is power, especially when it comes to managing your finances. Martino recommended using all of the resources your bank has to offer — even if it’s not your bank.

“Take advantage of free financial education and coaching services through our HOPE Inside centers established within select Wells Fargo branches, which offer free financial education and one-on-one coaching sessions with bilingual financial coaches — whether you’re a Wells Fargo customer or not,” he said.

These resources can provide personalized guidance to help you manage your money more effectively.

“These centers offer one-on-one sessions with bilingual financial coaches who can help you manage your money, improve your credit, create a budget, and set financial goals tailored to your needs,” Martino shared. Most banks offer services like this so make sure to ask an employee how you can meet with an expert to make your bank work for you.

Monitor and Improve Your Credit

As you most likely already know, your credit score plays a big role in your wealth building journey.

“Your credit score is a vital aspect of your financial health,” Martino explained. “By understanding and actively improving it, you can unlock better financial opportunities, including lower interest rates on loans and higher approval chances for rental or loan applications.”

This proactive approach not only ensures that you’ll get the best rates on borrowing, but it’ll keep you knowledgable about what’s going on with your entire financial picture. Knowledge = power.

Set and Review Actionable Financial Goals

Having clear financial goals sounds simple, but can be trickier than you think. However, it’s incredibly important. If you don’t plan for success, you’ll never know what’s possible.

Martino provided this practical advice: “Start by establishing clear, actionable goals, such as building an emergency fund or paying off a small debt. These targeted steps can enhance your financial stability and motivation, leading to better daily financial decisions. Simple practices, like cooking at home instead of dining out, can contribute to significant long-term savings.”

Optimize Your Liquidity Reserve

While having savings is of course important, it’s equally critical to ensure your money is working for you.

Thomas J. Brock, CFA, CPA, an annuity.org expert with over 20 years of experience in investments and finance, advised, “To build wealth faster, it is critical to maintain an adequate (but not excessive) liquidity reserve. Do not hold onto excessive amounts of cash. Strive to invest every penny you save that exceeds your liquidity target.”

So, invest the majority of your money, but make sure what’s liquid is also working for you. Brock has some thoughts on how to do this.

He said, “Make sure to house your liquidity reserve within a high-yield savings account or a money market mutual fund. The most competitive vehicles in this space are offering yields in excess of 5.00%. If your liquidity reserve is large enough, you may even be able to capture 5.50%.”

Rethink Your Paycheck Deposit Strategy

Saundra Curry, co-founder of BC Holdings, LLC , offered a unique approach to saving. “Have your paycheck deposited into your savings or money market and take out what you need to fund your budget. Most people that make this small change, and stick with it, save more money.”

This way, you can prioritize saving over spending, potentially leading to a growing bank account, without much extra thought.

Automate Your Finances

Curry emphasized the importance of automation in building wealth: Automate your payments.

“Be sure that you are never late making loan or credit card payments,” she said. “Late payments decrease your credit score significantly (it counts 35% of your credit score) which will make borrowing money more expensive for you.”

She also suggested setting up automated investments: “If you bank at a financial institution that has a partnership with an investment firm (i.e., BOA and MerrillEdge, USAA and Charles Schwab), it is easy to open an account and start investing. Just do it and set up automated investments each month.”

This article originally appeared on GOBankingRates.com : I’m a Banking Expert: Make These 7 Changes To Your Habits To Build Wealth Faster