We'd all like a pay rise in 2024, especially with the ramp-up in the cost of living over the past couple of years. So if you manage to bag yourself one this year, a preemptive congratulations.
But even if you don't manage to get an increase in your take-home pay in 2024, don't cry. There are still a few ways you can give your wealth a boost.
So today, let's talk about some ways you can get a little richer this year, without relying on your boss' generosity.
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Five ways to get richer in 2024
Ditch debt and don't look back
One of the worst things you can do for your wealth is take out debt to buy assets that don't appreciate in value. In my view, if you aren't borrowing money for shares, studies, property or a business, it's bad debt and should be avoided.
So if you have credit card debt, a car loan or a personal loan, make it your 2024 mission to pay it off, and leave debt behind forever. Remember, if you have a loan, it's an asset on somebody else's books helping them get richer.
Audit your spending
I'm not one for recommending a budget to anyone. If you're so inclined, a budget can be great. But in my experience, budgets tend to put people off managing their money with care.
So instead, why not do a simple audit of your spending? As they say, a penny saved is a penny earned. It can't hurt to take 10 minutes to go over your last few months' spending. You might find that you don't need that fifth streaming service. Or perhaps the kids have 'accidentally' signed you up to YouTube Premium or the top Netflix tier.
A simple checkup of where your money is going could help you cut the fat from your household spending.
Get richer by paying yourself first
One of the best pieces of financial advice I have ever read was this simple idea. Most of us tend to spend our paycheques every week, fortnight or month, and save whatever's left over. You'll be amazed at what can happen if you flip this on its head and take your allocated savings out whenever you get paid. As the saying goes, you don't miss what you don't have.
Try it out for yourself for your next paycheque by taking 10% or 20% out as soon as the money hits your bank account. You might just find that you don't even notice its absence. If you manage this for an entire year, think about how much extra cash you will add to your net worth.
Clear out the clutter
I don't know about you, but I'm someone who seems to attract a lot of worldly possessions. From interesting-looking books to old board games, it's often difficult to say no to something alluring that comes across your path.
Thankfully, it's never been easier to find buyers for anything that you can and might want to sell for a bit of extra cash. So perhaps you might want to take this opportunity to think about your own possessions and how much of them you really 'need'. Gathering the courage to initiate a purge of your house could give your wealth a real boost this year.
Get richer by investing in ASX shares
Last but not least, let's talk investing. Here at The Motley Fool, we believe investing in ASX shares is one of the best ways for ordinary Australians to build wealth. The best thing about shares is that high-quality companies tend to rise in value over time. That's whilst paying you passive income in the form of dividends. Getting paid to simply own something is a heck of a feeling.
If you're not into stock picking and going through numbers, never fear. It's easy to invest in ASX shares passively. For example, you can simply buy an ASX index fund that invests in the top 200 or 300 shares on the Australian stock exchange on your behalf. All you have to do is sit back, collect the dividends and watch your wealth slowly grow.
If you aren't already invested in ASX shares, do you and your future self a favour and get going.
