And some of the most common money goals aren’t all that surprising. According to research, that includes resolving to save more, cut spending, and pay off debt.
While many may see the start of a new year as a chance for a fresh start, Ramit Sethi, star of Netflix’s How to Get Rich, is a self-made millionaire. They say you don’t have to wait until January 1st to start building better money. Habit.
“If you want to start fresh, that’s great,” he told CNBC Make It. “But if you start before January 1, you’re sending yourself a strong signal that you are responsible for your actions, not the calendar.”
Here are three things he recommends for financial success in 2024:
Year-end check-in
Before the new year begins, Sethi recommends taking a look at how you’ve managed your finances over the past year. This will help you figure out what worked for you, what didn’t, and what you want to change, which will help you create a solid plan of action to reach your money goals. .
For example, if one of your goals is to save more money next year, it can be helpful to evaluate your top spending categories to see if you can direct some of those funds toward savings.
Create a “conscious spending plan”
It is no secret that Mr. Sethi believes that detailed budgeting is “pointless.” Instead, he recommends creating a “conscious spending plan” that tracks just his four numbers:
- Fixed costMortgage loan, rent, utility charges, etc.
- savingsemergency fund etc.
- investmentwhich includes contributions to a 401(k) or Roth IRA.
- “Guilt-free spending” shopping, eating at restaurants, etc.
By dividing your money this way, Sethi says, you can ensure that your financial priorities come first and that you can use the rest of your money to do things you like.
Define your “rich life”
Ramit believes that living a “rich life” is not necessarily associated with earning a certain amount of money.
“A ‘rich life’ is your ideal life,” he says. his websiteThat can mean everything from being able to pick up your kids from school every day to buying an expensive sweater without feeling guilty.
And when defining your own “rich life,” Sethi says it’s important to be specific.
For example, he says, don’t just set a broad goal of “stop worrying about money.” Instead, say something like, “I want to be able to shop at the grocery store without looking at the prices.”
When creating your financial plan for the new year, having specific milestones in mind will not only keep you moving toward achieving your goals, but also keep you on track with your plan.
“Write down what your ‘rich life’ is and use your money to make it happen,” says Sethi.
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check out: The self-made millionaire drives an 18-year-old Honda Accord that he bought in 2005.That’s part of his “rich life”