Nickels and dimes
Without a high-paying job, and with a family to support, Crawley couldn’t make large investments. So, he started small and stayed disciplined with his budgeting.
“I did it with good old-fashioned nickels and dimes. My mother taught me how to budget, which made me appreciate how a little money can grow,” he told Kiplinger.
Crawley explained that he also saved whatever he could from odd jobs, such as mowing lawns and washing windows — all on top of his day job.
Dividend investing has long been a strategy embraced by investors both large and small. Even legendary investor Warren Buffett recognizes its potential: Buffett’s company Berkshire Hathaway now collects over $700 million a year in dividends from Coca-Cola — one of Crawley’s favorite dividend-paying stocks.
And if the dividends are reinvested, they can harness the power of compounding, creating a snowball effect: each dividend payment buys more shares, which in turn produces even more dividends. Over time, this cycle can significantly amplify the growth of a portfolio, transforming small, consistent contributions into substantial wealth.
If picking individual stocks isn’t your preference, consider a simpler, tried-and-true strategy championed by Warren Buffett: investing in an S&P 500 index fund.
“In my view, for most people, the best thing to do is own the S&P 500 index fund,” Buffett has famously stated. This straightforward approach gives investors exposure to 500 of America’s largest companies across various industries, providing diversified exposure without the need for constant monitoring or active trading.
Buffett believes so strongly in this strategy that he has instructed 90% of his wife’s inheritance be invested in “a very low-cost S&P 500 index fund” after he dies.
The beauty of this approach is its accessibility — anyone, regardless of wealth, can take advantage of it. Even small amounts can grow over time with tools like Acorns, a popular app that automatically invests your spare change. Acorns can also automatically reinvest dividends, allowing you to harness the power of compounding — just like Crawley did.
Signing up for Acorns takes just minutes: link your cards, and Acorns will round up each purchase to the nearest dollar, investing the difference — your spare change — into a diversified portfolio. With Acorns, you can invest in an S&P 500 ETF with as little as $5 — and, if you sign up today, Acorns will add a $20 bonus to help you begin your investment journey.
Another path from rags to riches
Stocks aren’t the only asset class that has propelled everyday Americans to wealth — real estate has long been another powerful tool for building financial success.
Like dividend stocks, real estate offers opportunities to generate consistent cash flow through rental income while building equity over time through property appreciation.
It’s also a space where inspiring rags-to-riches stories emerge. Take real estate mogul and YouTube personality Ben Mallah, for example. Raised in the projects of Queens, New York, Mallah started investing in properties in “the tough neighborhoods of Oakland” that others avoided. Through decades of hard work, strategic refinancing, and leveraging the 1031 exchange, he built a real estate portfolio valued at $500 million.
While buying property today can seem daunting due to high prices and elevated interest rates, it’s important to remember that owning a property outright isn’t the only way to invest in real estate.
Crowdfunding platforms like Arrived have made it easier for average Americans to invest in rental properties without the need for a hefty down payment or the burden of property management.
With Arrived, you can invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants. The process is simple: browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase, and then sit back as you start receiving rental income deposits from your investment.
