5 Ways You Can Increase Your Net Worth in 2024

As your retirement years get closer, it’s time to give your finances a little extra polish. Increasing your net worth now can open up a world of possibilities, whether you want to enjoy a life of leisure or have specific retirement plans.

With the right strategies, you can boost your financial health and ensure a brighter future for yourself and your family. 

Here are five ways you can increase your net worth in 2024.

Make Improvements to Your Home

Your home isn’t just your sanctuary; it’s likely one of your largest assets. Investing in home improvement projects that add value can significantly boost your property’s market value. 

These improvements will make living in your home more enjoyable and potentially attract buyers if you decide to sell. Remember, the goal is to choose upgrades that will increase your home’s value more than the cost of the project itself.

Take Advantage of High-Interest Savings Accounts

With interest rates in a state of flux, securing a high-interest savings account could work wonders for your cash reserves. Shop around for banks or credit unions offering competitive rates. 

Online banks often provide higher interest rates than their brick-and-mortar counterparts due to lower overhead costs. By placing your money in these accounts, you can save money and generate passive income.

Collaborate With a Financial Advisor

Navigating the financial landscape can feel daunting, but you don’t have to do it alone. You can partner with a reputable fiduciary financial advisor to map out a strategy tailored to your goals. An experienced professional can help you diversify your investments, plan for tax season, and prepare for unforeseen expenses.

With their knowledge of financial trends, your decision-making will improve, aligning with your retirement objectives and risk tolerance. Over time, these decisions will positively impact your net worth.

Increase Your Retirement Contributions

Increasing your retirement contributions is one of the five ways you can increase your net worth in 2024. Consider increasing your contributions if you’re already contributing to a 401(k) or an individual retirement account (IRA). 

Take full advantage of employer match programs, which are essentially free money. As you approach retirement, making catch-up contributions can greatly impact your retirement savings balance.

Make a Debt Payment Plan

Reducing debt is a surefire way to increase your net worth. Outline a debt payment plan that prioritizes high-interest debt like credit card balances. Look into debt consolidation or refinancing options to see if they can provide you with lower interest rates. 

By paying off debts, you reduce the interest paid over time and free up more money to invest in your asset-building endeavors.

As we march into 2024, remember that it’s never too late to improve your financial position. By following the advice above, you can elevate your net worth and improve your financial prospects post-retirement. 

Taking proactive steps will give you a better financial cushion to rely on once you stop working.

What's Your Net Worth: How to Calculate Your Assets

You likely often hear the term "net worth" associated with high profile celebrities, and others who are well known all across the world. However, essentially everybody has a net worth, and sometimes, the finalized number can be quite a surprise. Calculating your net worth can help you get a realistic idea about your financial standing so you can make more sound decisions concerning your finances.
If you have access to your insurance policies, financial accounts, and other related information, you can easily calculate your assets. Use this guide as a starting point for getting a quick snapshot of your financial standing.

Add Up Your Cash

Adding your cash is as easy as it sounds. Cash refers to all physical currency that is currently in your possession. For example, the money in your wallet, the change in your coin jar, and the even the pennies in your couch are all physical currency that you own. If you have foreign currency, be sure to factor that in as well. You might need to use a conversion tool to find out its value in US dollars.

Examine Your Accounts

The accounts you analyze won't be merely limited to checking or savings accounts. You'll want to look into your money market accounts, CDs (certificates of deposit), IRAs, 401k earnings, mutual funds, bonds, and stocks. Any account you have that has a current monetary worth should be counted when looking into your accounts. You can check online to get a good idea of your accounts interest.

Factor in Real Estate

Regardless of whether you have a mortgage on your property or not, you should calculate the estate's current market value. Practically any properties you own, including land, should be added in. 

Add Your Insurance Policy

Life insurance has a cash value on it, and this particular value is determined when the policy is initially taken out. An insurance broker can help you calculate the value of your insurance policy if you're not immediately sure about it. Don't guess at how much you have; find out the exact value by either looking into your account or contacting your insurance company.

Determine the Worth of Your Possessions

This is where calculating your assets can get slightly tricky. You likely own lots of valuable possessions, but you aren't sure what their true worth really is. Find out the money market value of possessions such as collectibles, jewelry, antiques, and furniture. Motor vehicles should also be factored in by their blue book value; be sure to include motorcycles, RVs, boats, etc. If you're having trouble determining the worth of a certain possession, consider having it appraised by a professional.

Calculate Money Owed

If you are owed a debt that can be expected to be paid back, you can count the money owed towards your assets. For example, if you loaned a friend $200 to pay their electric bill, and they promised to return the full amount to you within two weeks, you could count this as an asset. However, money you've given to others that hasn't been paid back within a reasonable amount of time shouldn't be counted.

Subtract Debts

The value of your net worth quite simply comes down to the numerical amount left over when debts have been subtracted from assets. Debts you should consider subtracting from your assets include amounts left owed on any mortgages, student loans, credit card debts, home equity loans, and automobile loans. To calculate the magical number, subtract the amount totaled from your debts from your total value of assets.

After the age of 18, virtually everyone should have an idea of their net worth. According to Edmonton insurance brokers at Drayden Insurance Ltd, calculating your net worth is not only about knowing where you stand with your finances, but also developing a plan for your future.