Why Some People Build Wealth on ‘Normal’ Salaries — and Others Don’t

Why Some People Build Wealth on ‘Normal’ Salaries — and Others Don’t

Cara Danielle Brown

Fri, September 4, 2026 at 1:46 AM GMT+3 2 min read

Contrary to popular belief, Americans don't need to be high-powered CEO's in order to get rich. While having a six-figure salary certainly helps, plenty of individuals earning average salaries can build wealth equal to or greater than those who outearn them — if they act accordingly.

So why are some people who earn "normal" salaries able to build wealth while others aren't?

"Those who are able to build wealth on normal salaries exhibit discipline," said Robert Johnson, chartered financial analyst (CFA) and professor of finance atCreighton University. Here's what that looks like.

They Live Below Their Means

According to Melanie Musson, insurance and finance expert atClearsurance.com, the first step to building wealth on an average salary is fairly basic: spend less than you earn every month. Those who are successful resist lifestyle inflation and cut costs where possible: they eat at home instead of dining out, buy used cars instead of new cars and consider low-cost entertainment and travel options instead of pricey alternatives. From there, they allocate their leftover cash to savings and investments and let it accrue over time.

They Take Investment Risk

"It isn't simply enough to save money," said Johnson, who explained the biggest mistake many people make is not taking enough risk. He further explained that many people are overly conservative with their asset allocation — particularly those in retirement. But he was adamant that the best way to build long-term wealth is by investing in the stock market and then having the discipline to keep it there.

According to data compiled by Duff & Phelps (as seen in thisMcGraw Hill text), since 1926, the average annual return on a large capitalization stock index like the S&P 500 has been 10.4%. If this holds, it means investors can double their money in the next seven years and have 10 times their original amount in 23 years.

They Don't Attach Themselves to Defeatist Narratives

Wendy Molyneux, founder ofWhole Person Finance, explained that many people are financially held back by their personal money narratives — or internalized patterns that shape one's financial identity and behavior. These are often formed through early experiences and cultural messaging. For instance, if your parents and grandparents were poor, you might automatically assume you are destined to be poor. And your behavior would, therefore, follow this defeatist belief. Molyneux stated those who build wealth are able to truly recognize these personal boundaries (both real and imagined) so they can consistently combat them.

This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.

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