The 12 months 2024 is already almost half way through. The stock market continues to flirt with all-time highs while rates of interest are still hovering near last 12 months’s peak.
Despite all of the uncertainty within the economy, many investors are still cautious about where to take a position their money.
While the “best” place largely is determined by your financial goals, listed here are the eight most promising ways to take a position your hard-earned money for the remaining of 2024.
1. Overcome debt
To start, let’s talk in regards to the elephant within the room – debt. Staring at collective household debt that exceeds 17.5 trillion dollars within the USA made me need to hurl. With the typical debt at over $104,000 and bank card debt at $1.13 trillion, it’s clear: the trail to financial freedom begins with tackling debt head-on.
For me, realizing that paying off debt is a guaranteed return on investment was a game changer. That didn’t mean I needed to repay all of my debt before I began investing. I just made sure I had a solid debt payoff plan to work on and pave the way in which for higher return investments.
Marc Russell, founder and owner of the favored financial literacy company, BetterWallet, paid off $80,000 in debt after college. $50,000 of that debt was paid off inside three years.
Russell says: “Paying off my debt was the best “promotion” I’ve ever received. Once the debt is gone, you should use this extra income to take a position or spend guilt-free on the belongings you love, like vacations.”
2. Dividend stocks
The 12 months 2024 has made the breakthrough and the S&P 500 reached all-time highs in the primary few weeks. But does that mean it’s smart to place all of your savings into the stock market?
In my journey, I learned that timing the market is a idiot’s errand. Instead, dollar-cost averaging was my mantra, allowing me to take a position systematically and mitigate the danger of market volatility.
I also began diving into dividend stocks, particularly the S&P 500 Dividend Aristocrats, which offered each growth and income, striking a balance between stability and profitability.
Russell mentions, “It’s crucial to get into the market as early as possible.” Focus less on how much you possibly can invest and more on how often you possibly can invest. Companies like Fidelity offer tools that mean you can routinely invest each day, weekly, or monthly for as little as a dollar. Use this to your advantage!”
3. Banking
Let’s speak about banks and their ridiculously low rates of interest on savings. After seeing my bank offering a paltry 0.1% on savings, it was clear that settling for the established order wasn’t going to be enough. Finding high-yield savings accounts has change into a priority, underscoring the importance of not letting your money sink into underperforming accounts.
Tyler Meyer, CFP® and CEO of QED Wealth Solutions, expresses his thoughts on maximizing your returns: “Finding an appropriate return on your cash can be crucial… especially if you have significant cash needs. Storing money in a traditional savings account is rarely the solution, but banks typically offer money market accounts or CDs with significantly higher interest rates.”
Investors also needs to remember that searching for the best return may all the time be the perfect use of effort and time nowadays. Meyer adds, “While it can certainly be helpful to try, it’s worth considering whether it’s worth it.” If you simply keep $10,000 in money, a further 1% return means just $100 -dollars more per 12 months.”
4. Real estate
Real estate continues to be a very important investment opportunity and attracts attention for its tangible value and wealth creation potential. I typically gravitate toward investing in digital spaces, but I proceed to be drawn to the steadiness and potential returns of physical real estate.
According to a report by Ameriprise Financial
Ameriprise Financial
Alternatively platforms like Fundraiser Allow investors like me to explore real estate opportunities from home and enable portfolio diversification through large, tangible assets without the necessity for direct management. This strategy is consistent with a broader trend where real estate investing stays a preferred approach to constructing long-term wealth.
Oh, Bitcoin. The 12 months 2023 was a turbulent 12 months for cryptocurrencies. The stock markets step by step collapsed, making my Bitcoin journey an actual emotional rollercoaster. Nevertheless, Bitcoin hit an all-time high in March and shined amid the chaos.
Recently, the Bitcoin halving occurred, which further affected its value and availability. The launch of recent Bitcoin ETFs and increasing investments from institutional investors represent growing acceptance and stabilization of Bitcoin within the broader financial landscape.
This shift towards more mainstream investment vehicles and the numerous capital inflow from institutional sources underscore the strong confidence in Bitcoin’s potential, even in volatile markets.
6. Your health
Investing in your personal health is an important, non-negotiable aspect of private and financial well-being. This importance was highlighted when a client’s friend, who had just retired and change into wealthy, tragically died shortly thereafter. This unlucky event is a continuing reminder that every one the cash on the earth doesn’t matter for those who neglect your health.
It’s crucial to prioritize each physical and mental health through activities like regular exercise, a healthy food plan, or mental health care like therapy. It ensures that we will benefit from the fruits of our labor and effectively manage the stress related to maintaining and growing our investments.
7. Personal growth
From acquiring recent certifications to diving deep into personal development, investing in myself has been a cornerstone of my journey. The pursuit of information and skills not only increases your value, but additionally opens doors to previously unimaginable opportunities.
For me, becoming a Certified Financial Planner (CFP®) wasn’t nearly putting letters after my name; It was a transformative process that broadened my horizons and deepened my understanding of wealth creation.
Earning degrees or certifications are only just a few ways you possibly can develop personally. Learning a brand new skill, whether to advance your profession or for a brand new hobby, enriches your life in profound ways.
8. The side hustle
Diving into side hustles has really modified the way in which I work and turned fun activities like making YouTube videos, blogging, or developing digital products into real money makers. It’s exciting to see your passions repay. This is why I often encourage people to explore various part-time jobs somewhat than attempting to work additional time with their current employer.
Side hustles are crucial in today’s world – they increase your income and offer you more security in an ever-changing job market. If you are able to stand out in 2024, select a project that excites you and might fill your wallet too.
The conclusion
As we approach the center of 2024, the strategies listed here reflect different approaches to managing and growing your investments. From reducing debt to making the most of opportunities in real estate and cryptocurrency, each option serves a unique risk profile and financial goal.
Adapting to the changing economic landscape is critical, and whether it’s paying off debt, investing in markets or improving personal health, each decision can contribute to long-term financial well-being. Keep your goals clear, stay informed, and adjust your strategies as needed to successfully navigate 2024.
