Ramit Sethi: 5 Easy Steps To Getting Rich in 2024
Written by
Ashleigh Ray, AI Editor
Edited by
Ashleigh Ray
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
In the hustle of life, it’s easy to lose sight of your financial goals. But, thanks to a recent video from financial guru, Ramit Sethi, 2024 can be different.
In it, he breaks down 5 easy steps anyone can take in order to build wealth. Make this year the one where you take control and steer your finances in the direction of your dreams. Just follow Sethi’s checklist.
Step 1: Reflect and Dream Big
Sethi says to begin by looking back at the previous year. What were your financial successes and setbacks? This isn’t about dwelling on the past but learning from it.
Now, switch gears and dream big. Envision your ideal 2024. What does it look like? A beach house? More family time? Whatever it is, be bold in your aspirations. Remember, this is the year you’re laying the groundwork for a life of abundance, so allow yourself to think expansively.
Set time aside with your family or even by yourself to reflect on these questions and jot down your visions and goals. This step isn’t just about setting targets; it’s about crafting a clear, vivid picture of your rich life.
Step 2: Align Your Spending with Your Vision
Next, it’s time to evaluate your spending habits. Your finances are a tool, and they should be aligned with your goals.
This step involves creating what Sethi calls a “Conscious Spending Plan.” Look at your income and expenses and ask yourself if your spending truly reflects your priorities. If not, this is your chance to recalibrate.
Remember, every dollar you save from unnecessary expenses is a dollar you can invest in your dreams. The point of this isn’t penny-pinching or denying yourself pleasures, but rather spending intentionally and making sure each expense brings you closer to your rich life.
Step 3: Negotiate and Minimize Expenses
According to Sethi, one often overlooked wealth-building strategy is negotiating your existing bills and fees.
Companies spend a lot on acquiring customers, so use this to your advantage. From credit card rates to subscription services, there’s often room for negotiation.
This step goes beyond mere budgeting. By reducing these costs and actively managing your finances, you free up more money to save, invest or spend on things that truly add value to your life.
Step 4: Utilize Credit Wisely and Tackle Debt
Credit cards can be a double-edged sword warns Sethi. Used wisely, they offer rewards and build your credit score. Used carelessly, they can lead to spiraling debt.
Make 2024 the year you master your credit. Take advantage of the perks but pay off balances in full to avoid interest. If you’re in debt, prioritize paying it off. Consider transferring balances to a lower interest rate card or negotiating with creditors to reduce rates.
Debt can be a massive roadblock on your path to wealth, but with a solid plan and disciplined approach, you can overcome it and move closer to financial freedom.
Step 5: Increase Your Earnings
Finally, Sethi suggests you focus on increasing your income. There’s a limit to how much you can save, but there isn’t a limit to your earning potential.
Whether it’s negotiating a raise, finding a higher-paying job or starting a side hustle, work on increasing your income streams. More income means more capital to invest in your dreams.
And don’t just work harder; work smarter. Identify your skills and strengths, leverage them to your advantage and watch as doors to new opportunities open before you.
Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.
More From GOBankingRates
