Almost 3 in 4 Americans Expect to See Their Net Worth Increase in 2024. Here’s How to Raise Yours

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Your net worth is something you should try to grow over time. Read on for ways to pull that off. [[{“value”:”

You may not sit there contemplating your net worth every day. And frankly, your net worth isn’t something to worry or stress about from one week to the next. Rather, a healthier approach to net worth is to have the goal of seeing yours rise gradually over time.

If you’re not sure what your net worth is, it’s a measure of your total assets minus your debts. As a very simple example, if you have a balance of $10,000 in your savings account and owe $4,000 on your credit cards, you’re left with a net worth of $6,000.

Meanwhile, data from Empower finds that 73% of Americans expect to boost their net worth in 2024. And that’s a good thing.

But remember, an optimal approach to raising net worth is to do so over your lifetime. With that in mind, here are some steps you can take to grow your net worth.

1. Minimize your debt

Since your debts are factored into your net worth, the less debt you have, the higher your net worth can be. But just as importantly, when you take on debt, you lose money to interest. That’s money that could instead be added to your asset column.

One way to steer clear of debt — particularly of the credit card variety — is to stick to a budget and track your spending. And if you’ve struggled to do that in the past because it can be tedious and even time-consuming, then you might have a lot more success with a budgeting app. These apps can sync to your various bank and credit card accounts so your spending is categorized and tracked automatically.

2. Invest money you don’t need for emergencies or near-term goals

Funds you’ve put aside for unplanned expenses, like home repairs, should always stay tucked away in your savings account. But if you have money you don’t expect to need or use for many years, then investing it could raise your net worth substantially over time.

The stock market’s average annual return over the past 50 years has been 10%. If you have $10,000 you don’t have a near-term need for, and you invest it for that same return over a 30-year period, it’ll be worth $174,000.

3. Buy a home — but only if that’s something you want to do

Real estate has a tendency to gain value over time. So if you purchase a home for $300,000 today, by the time you’re done paying off your mortgage, it may be worth $600,000.

However, you really should not buy a home for the express goal of increasing your net worth. Owning a home is a lot of work, and there are many expenses involved.

If you buy a home for $300,000, sure, it might double in value over 30 years. But you might end up spending $300,000 beyond your home’s purchase price on bills like property taxes, insurance, maintenance, and repairs during those three decades.

As such, only buy a home if that’s something you feel you want to do. If you’re not eager to commit to the work and prefer to rent, take the money you would’ve put toward a down payment and invest it in stocks instead. We just saw that doing so is a great way to raise your net worth without having to do things like constantly mow the lawn or fix leaky faucets.

It’s encouraging to see that most Americans anticipate their net worth increasing in 2024. But don’t fixate so much about raising your net worth this year. Instead, map out a plan to slowly but surely increase your net worth over time.

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