Make 2024 Your Richest Year: 11 Low-Effort Ways To Build Wealth
Written by
Cynthia Measom
Edited by
Amen Oyiboke
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If you’re earning a decent amount of income but really haven’t been focused on making the most of your money, it’s time to get together a game plan.
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To help you make 2024 your richest year, here are 11 low-effort ways to build wealth from industry experts.
Set Clear Financial Goals
Kelly Ann Winget CEO, founder, and fund manager at Alternative Wealth Partners, said, “Define what you want to accomplish, whether it’s accumulating wealth and saving more, homeownership, early retirement or starting a business. Specific goals provide direction and motivation, propelling you towards financial success.”
Make Every Dollar Count
Winget said that making smart money choices will add up over time. “Budgeting, tracking expenses and cutting back on nonessentials free up more money for savings and investments, and therefore, accelerating your path to wealth,” she said. “Joining points and free membership clubs can also have significant benefits for one’s bank account. These reward programs and clubs are designed to offer discounts, rewards — even cash back.”
Boost Your Financial Literacy
“Educate yourself on personal finance, investment strategies and wealth-building principles,” Winget said. “Empowered with knowledge, you’ll make savvy financial decisions and adapt to changing economic conditions.”
Start Saving Small and Build Up
Winget advised starting small when deciding how much of your paycheck you should put in savings consistently. “Try saving 5%-10% and work your way up to 25%,” she said. “If you have specific savings goals–for example a new car, house, wardrobe, vacation, etcetera– then start saving 1%-2% for each of those goals. You want to be able to support yourself, comfortably, on around 50%-60% of your net income. Eventually, you can start tax planning and reclaim the 15%-25% of your income that goes straight to taxes and keep more of that in your pocket every year.”
Live Below Your Means
“The ability to live below your means can also help you build wealth,” said Jordan Mangaliman, CEO of Goldline Financial Services. “Lifestyle inflation can act as a trap, causing you to increase your expenses. This can be especially true as your income increases. Do your best to live below your means and invest/save the difference. The more money you save and invest, as well as the longer you do it, helps your money grow more through compound interest.”
Create Multiple Income Streams
“Look for ways to create multiple streams of income as a way to build wealth,” said Mangaliman. “This could include freelancing, taking a hobby and turning it into a side business or joining the gig economy. Consider putting the money made from a side gig into investments, specifically income-generating assets.”
Start Your Investment Journey
“If you are a new investor who is financially stable (meaning your bills are comfortably paid, you have a nest egg for emergencies, etc.) then starting your investment journey is a natural next step,” advised Winget. “Goal setting is the first part of investing; what are you investing for? Retirement, a new house, moving, financial freedom/career change? Figuring out what you want, how much it is going to cost and when you want it will help guide your investment decisions. Short-term goals require very liquid investments, long-term goals allow you to patiently grow your money over time.”
Pay Down Your Debt
“While many people overlook paying down your debt as a way to build wealth, with higher interest rates it is likely the best place to start,” said Jay Zigmont, Ph.D., CFP, founder of Childfree Wealth. “Your net worth is everything you own, minus everything you owe. If you owe less, your net worth goes up.”
Get That Match
Zigmont said that if your employer offers a 401(k) or similar retirement plan match, you should definitely take advantage of the opportunity. “Often there is a minimum amount you need to invest in order to qualify for the match,” he said. “Just remember that there is probably a number of years you need to be at the company before your match vests and it becomes yours.”
Get Your Taxes ‘Right’
Getting a tax refund each year of hundreds — or even thousands — of dollars might seem nice, but you could be investing that money and growing your wealth.
“If you are regularly getting a tax refund, you need to adjust your withholding now,” advised Zigmont. “Take the amount you adjust your withholding by and add it to your 401(k) plan.”
Stay Disciplined and Patient
“Building wealth is a gradual journey,” said Winget. “Embrace discipline and patience through market fluctuations and economic cycles. Consistent saving and investing, with automated contributions, can help propel you towards long-term financial success.”
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