Middle Class to Rich in 2024: 8 Money Resolutions for Boosting Your Wealth
Building wealth is more within reach for many people today than ever before, and the beginning of the new year can be a great time for change.
“As an expert on building wealth, my suggestion for a New Year’s resolution would be to set a goal of increasing your net worth by at least 5% in 2024,” said Paige Robinson, real estate investor and owner of House Buyers. “Examine your spending choices and find ways to reduce your expenses and invest more money into building your wealth.”
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If you’re part of the middle class and looking for more ways to boost your finances in 2024, experts recommend focusing on the following money resolutions.
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Create a Financial Plan
“Creating a financial plan is essential for building wealth in the long run,” said Linda Chavez, founder and CEO of Seniors Life Insurance Finder.
A financial plan includes setting realistic goals, creating a budget and managing your debt strategically. It also involves understanding your cash flow and identifying areas where you can cut back on unnecessary expenses.
Save Consistently
According to Chavez, many middle-class people struggle with saving money because they are living paycheck to paycheck. However, she said saving consistently, even if it’s a small amount each month, can make a significant difference in the long run. “Consider automating your savings by setting up automatic transfers from your checking account to a savings or investment account.”
Karina Newman, real estate investor and owner of iBuyers said automating makes saving money a no-brainer. “Set up automatic transfers from your checking to your savings or investments. It’s like putting money on autopilot,” she explained. “Got an emergency fund? Awesome! Give it its own savings account and let the contributions roll in automatically. It’s like building a superhero fund for unexpected money villains.”
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Invest Wisely
Investing is crucial for building wealth, experts say, as well as securing financial stability in the future. While it may seem intimidating, there are various investment options available for middle-class individuals, such as stocks, bonds, mutual funds and real estate.
“It’s essential to do your research and consult with a financial advisor before making any investment decisions,” Chavez advised.
Newman said investing doesn’t have to be a head-scratcher either. “Think of it like a buffet; spread your investments around. A bit of stocks, a dash of bonds, maybe some real estate. Mix it up! And don’t stress about short-term ups and downs.”
She emphasized looking at the long game. “Check your investment mix regularly, kind of like tending to your garden. Make adjustments if needed to keep things balanced.”
Pay Off High-Interest Debt
Experts agree that debt can be a significant hindrance when it comes to building wealth. High-interest debt, such as credit card debt, can quickly accumulate and make it challenging to achieve your financial goals. Chavez urged making it a priority to pay off any high-interest debt as soon as possible, and avoid taking on new debt if possible.
Newman said to start by taking a good look at what you owe in terms of credit cards, loans — the works. Check out the interest rates, too. This helps figure out where to start. Then, make a plan to pay them off by setting aside a chunk of your budget just for that.
“Ever heard of the snowball or avalanche methods? They’re cool ways to pay off debts,” Newman added. “And hey, don’t hesitate to chat with your creditors. Sometimes, they’re open to lowering your interest rates, especially if you’ve been on top of your payments.”
Increase Your Income
“Increasing your income can significantly impact your ability to build wealth,” said Chavez. “Consider negotiating a raise or looking for other job opportunities that offer higher pay.” She added that you can also consider starting a side hustle or freelancing to supplement your income.
Newman is also on board with this approach. “Ever thought about turning your hobby into some extra cash? Identify what you’re good at and find ways to get even better. Take online courses, it’s like leveling up in a game but for real life,” she explained. “Maybe explore a side hustle or freelancing gig that matches your skills. Who knows, it could grow into a cool side business!”
Educate Yourself on Personal Finance
“Knowledge is power when it comes to managing money and building wealth,” said Chavez. “Take the time to educate yourself on personal finance topics, such as budgeting, saving, investing, and retirement planning.”
She noted that there are plenty of resources available online, including blogs, podcasts and books that can help you improve your financial literacy.
“Who says learning about money can’t be fun?” Newman added. “Dive into books and articles by money gurus like Warren Buffett. Take online courses that break down the money game, from budgeting to fancy investment moves.” She also advised staying in the loop with financial news. “It’s like keeping up with the town gossip but for your wallet. The more you know, the better choices you can make.”
Review and Adjust Insurance Coverage
“Insurance, not the most exciting topic, but it’s crucial,” said Newman. “Take a look at what you’ve got. If your mortgage is shrinking, maybe your home insurance can too.”
Additionally, she recommended shopping around for insurance deals. “It’s like hunting for the best discounts. Make sure you’re covered where you need to be, without burning a hole in your pocket.”
Set Realistic and Achievable Goals
Experts say that setting ambitious but achievable goals is crucial for staying motivated and on track with your financial plan. Start by setting short-term goals, such as paying off a specific debt or saving a certain amount of money within a set timeframe. Then, gradually work towards more long-term goals like buying a home or saving for retirement.
Finally, Chavez said to remember that building wealth takes time and patience. “It’s essential to stay focused on your financial goals and make consistent efforts towards achieving them.”
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This article originally appeared on GOBankingRates.com: Middle Class to Rich in 2024: 8 Money Resolutions for Boosting Your Wealth
