Many people flock to the United States to pursue the American Dream. While that dream may look different for everyone, building wealth and establishing financial security are typically key components. Although there are added challenges when it comes to creating long-lasting wealth as a first-generation American, there are clear steps that can help make it possible.
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From disciplined saving to entrepreneurship, here are five proven strategies many successful first-generation Americans use to build lasting financial legacies.
1. Boosting Financial Literacy
Building long-term wealth starts with understanding how money works. First-generation Americans should seek out financial literacy resources or work with a financial professional who can help them come up with a personalized plan.
“Among first-generation Americans in particular, a common trend I’ve seen is the goal of developing long-term financial prosperity,” said Peter Reagan, financial market strategist at Birch Gold Group. “Building a steady foundation for their families is a powerful motivator behind the thoughtful decisions they take.”
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2. Saving Consistently — Even on a Modest Income
Carson Mclean, founder of Altruist Wealth Management, said that his first-generation clients are often the most disciplined about sticking to their savings goals.
“From what I’ve seen, many first-generation Americans build wealth by focusing on what they can control,” he said. “They tend to prioritize stability and long-term upside over fast gains. That might mean starting a business, investing steadily or saving aggressively, even on a modest income. The discipline often comes from necessity. There is no fallback, so every dollar has a purpose.”
3. Investing Wisely
Investing is where wealth begins to multiply. But for many first-generation Americans, it’s an unfamiliar and sometimes intimidating territory.
“Smart investing is particularly powerful for first-gen Americans because we typically have higher incomes, but were never taught about compound interest or diversification,” said Rose Han, a financial educator. “Instead of keeping money in savings accounts earning 0.1% [interest], start by investing in a diversified portfolio of low-cost index funds.”
Han notes that using this strategy, a $500 monthly investment can grow to over $1 million in 30 years.
“That’s the power of making your money work harder than you do,” she said. “The key is calculated risk-taking — not gambling, but making informed decisions about appreciating assets.”
4. Starting a Business
Many of the most successful entrepreneurs in America are immigrants, including Tesla and SpaceX co-founder Elon Musk and Google co-founder Sergey Brin.
“Entrepreneurship gives families control over their income and time, helps avoid wage ceilings and teaches the next generation how wealth is built,” said Andrew Latham, a certified financial planner with SuperMoney.com. “For example, a modest home services company generating $150,000 a year can, with consistent reinvestment, grow into a million-dollar asset within 10 to 15 years.”
5. Using the Right Tools
Wealth isn’t just about growth — it’s also about protection. Successful first-generation Americans use financial tools strategically to safeguard their assets and plan for the future.
“Accounts like 401(k) plans and IRAs are a great starting point, but investing in taxable brokerage accounts enhances liquidity and gives you more flexibility before age 60,” said Derek Munchow, managing partner and CFP at Augustus Wealth, an RIA based in Long Beach, California.
For entrepreneurs, Latham recommends integrating SEP IRAs, solo 401(k) plans and term life insurance into their financial plans.
“These tools help to protect and scale their business,” he said.
Looking to build a legacy? Check out our Life to Legacy guide for expert advice and smart moves you can make today.
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This article originally appeared on GOBankingRates.com: 5 Ways the Most Successful First-Generation Americans Build Lasting Wealth
