Yahoo Finance 9 Steps Middle Class Couples Must Take To Build Wealth in 2024
For many middle class couples, growing wealth doesn’t come down to luck — instead, it involves a series of steps they can take over the coming year to set themselves up for success.
According to Dennis Shirshikov, head of growth at Awning, building wealth in 2024 — especially for middle-class couples — hinges on a blend of traditional wisdom and innovative strategies.
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“Firstly, it’s paramount to embrace budgeting and saving with a renewed focus,” he explained. “This isn’t just about cutting back; it’s about intelligent allocation of resources. For instance, leveraging high-yield savings accounts or exploring fintech solutions that automate savings can be a game-changer.”
For Angela Wang, real estate investor and owner of We Buy Houses 7, being smart about money comes down to having open communication about finances, merging finances, engaging in financial planning, managing money habits and understanding the benefits of marriage. By doing so, she said couples can work together to build wealth and achieve their financial goals.
Here are some more of the top recommendations experts offer middle class couples looking to build wealth in the new year.
Communicate
Open communication about your finances is crucial.
“Couples should discuss their financial goals, fears and habits openly and honestly,” said Wang.
She explained this can help them understand each other’s spending and saving tendencies and avoid conflicts.
“By having a clear understanding of each other’s financial situation,” she said, “couples can work together to create a plan that aligns with their long-term goals.”
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Manage Money Jointly by Merging Accounts
According to Wang, this can include having joint accounts for income, savings and expenses, while also maintaining some separate accounts for individual needs.
She explained, “By working together to manage finances, couples can ensure that they are on the same page when it comes to spending and saving.”
Manage Money Habits
Just as important as planning for the future, Wang said another important step in building wealth is to look at a couple’s overall money habits.
“If one partner is a spender and the other is a saver, finding a middle ground where both parties feel comfortable is key,” she said.
She also insists couples should discuss how to handle new money, whether to spend or save it and how to cope with differences in money habits. “By working together to manage money habits, couples can avoid conflicts and build wealth more effectively.”
Build a Financial Plan
“Couples should work together on wealth-building strategies and seek the help of a certified financial planner, if necessary,” Wang said. “A financial planner can help couples align their long-term financial goals and overcome any conflicts that may arise when discussing money.”
She noted that by having a clear plan in place, couples can work towards their financial goals with confidence.
Start Cutting Costs
Ann Martin, director of operations of CreditDonkey, said one of the keys to building wealth in this environment is looking for ways to cut costs.
“While inflation has slowed down, prices are still high on essentials like food, gas and rent, and many people’s wages haven’t caught up yet,” she said.
“This is a year to do what you have to do to keep making the same contributions to your emergency fund and your 401(k),” she said. “By the end of the year, inflation should be tamed enough for the Fed to ease up on interest rates, and at that point, we’ll likely see wages start to creep up again.”
Tackle Your Debt
“Middle class couples that have debt should focus on either getting out of debt in 2024 or at least creating a strategic plan to get out of debt soon,” said Jake Hill, finance expert and CEO of DebtHammer.
He said that student loans, personal loans and credit card debt can significantly weigh a person — and a couple with shared finances — down.
“It makes it way harder to buy property or take other big financial steps,” he explained. “So, couples should aim to prioritize debt repayment to become more financially free and start building their wealth.”
Begin Investing
David Kemmerer, CEO of CoinLedger, said his top recommendation for middle class couples looking to build wealth in the coming year is to invest.
“Investing can be a daunting prospect for many, but in my experience, it’s one of the best steps toward building personal wealth for your family,” he said.
He said options like real estate or even cryptocurrency ETFs — which are becoming more common — can make great options for a diverse portfolio that will build up your personal wealth for years to come.
Emma Collins, CEO of Trading.biz, noted that investing in diversified assets is key. “Consider a mix of stocks, bonds and possibly real estate, depending on [your] risk tolerance and financial goals. Regular, disciplined investments, possibly through a monthly SIP (Systematic Investment Plan), can compound over time, significantly enhancing wealth.”
Consider Homeownership
According to experts, home ownership is one of the best ways to build wealth, since with every month, you’re building your own equity versus helping a landlord build equity.
“One step I would really recommend middle class couples take this year to build wealth is purchasing a home, if they haven’t already,” said Carter Seuthe, CEO of Credit Summit Consolidation. “If home ownership isn’t in the cards just yet, I might recommend something like investing in a real estate ETF.”
He said this can be an easier and more approachable way to invest in real estate, and it tends to be more accessible to people in the middle class versus purchasing an investment property.
Real estate, particularly through platforms that democratize property investment, offers an intriguing avenue, Shirshikov said. “For example, [at my company], we’ve seen couples thrive by investing in rental properties, balancing their portfolios with assets that are less volatile than the stock market.”
Continue Self-Education
According to Shirshikov, the financial landscape is ever-evolving, and staying informed is crucial. “I recall a couple I advised at a seminar who shifted their investment strategy after gaining a deeper understanding of market trends, leading to significant wealth growth over time.”
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