2024 is already close to being halfway over. The stock market continues to flirt with all-time highs while interest rates are till hovering near the peak of last year.
With all the uncertainty in the economy, many investors are still cautious where to park their money.
While the “best” place is largely dependent on your financial goals, here are the eight most promising avenues for investing your hard-earned money for the rest of 2024.
1. Conquering Debt
Kicking things off, let’s talk about the elephant in the room – debt. Staring at a collective household debt surpassing $17.5 trillion in the US had me wanting to hurl. With average household debt over $104,000 and credit card debt hitting the $1.13 trillion mark, it’s clear: the path to financial freedom starts with tackling debt head-on.
For me, realizing that paying off debt is a guaranteed return on investment was a game-changer. It didn’t mean that I had to have all of my debt paid off before I started investing. I just made sure I had a solid debt payoff plan plan to chip away at it, paving the way for more higher returning investments.
Marc Russell who is the founder and owner of the popular financial literacy company, BetterWallet, paid off $80,000 of debt after college. $50,000 of that debt was cleared within 3 years.
Russell says, “Paying off my debt was the best “promotion” I’ve ever received. Once the debt is gone, you can use that additional income to invest or spend on the things you love like vacations, without guilt.”
2. Dividend Stocks
2024 hit the ground running, with the S&P 500 reaching all-time highs within the first few weeks. But does that mean it’s wise to funnel all your savings into the stock market?
Through my journey, I’ve learned that timing the market is a fool’s errand. Instead, dollar-cost averaging has been my mantra, allowing me to invest systematically and mitigate the risk of market volatility.
I also began diving into dividend-paying stocks, particularly the Dividend Aristocrats of the S&P 500, has offered both growth and income, striking a balance between stability and profitability.
Russell mentions that “It’s critical that you get in the market as early as you can. Focus less on how much you can invest but rather focus on how often you can invest. Companies like Fidelity offer tools where you can automatically invest daily, weekly, or monthly for as little as a dollar. Use that to your advantage!”
3. Banking on Banks
Let’s talk about banks and their laughably low savings rates. After seeing my bank offer a measly 0.1% on savings, it was clear that settling for the status quo wasn’t going to cut it. The quest for high-yield savings accounts became a priority, underscoring the importance of not letting your money languish in underperforming accounts.
Tyler Meyer, CFP® and CEO of QED Wealth Solutions, offers his thoughts on maximizing your returns, “Finding a reasonable return on your cash can be critically important…particularly if you have significant cash needs. Keeping money in a traditional savings account is rarely the answer, however typically banks will offer money market accounts or CDs with significantly higher interest rates.”
Investors should also be aware that chasing the highest yield might now always be with time and effort. Meyer adds, “While shopping it out can certainly be helpful it is worth it to do the math on whether it is worth it. If you only keep $10k in cash, an extra 1% of yield is only an extra $100 per year.”
4. Real Estate
Real estate remains a significant investment choice, drawing attention for its tangible value and potential for wealth accumulation. My investments typically skew towards digital realms, yet the stability and potential returns from physical properties continue to attract me.
According to an Ameriprise Financial
Ameriprise Financial
Alternatively, platforms like Fundrise enable investors like myself to explore real estate opportunities from home, allowing for portfolio diversification through substantial, tangible assets without the need for direct management. This strategy aligns with a broader trend where real estate investment remains a preferred method for building long-term wealth.
Oh, Bitcoin. The year 2023 was tumultuous for cryptocurrencies, with exchanges crumbling one after another, making my Bitcoin journey a true emotional rollercoaster. Despite this, Bitcoin reached an all-time high in March, shining amidst the chaos.
Recently, the Bitcoin halving event occurred, further influencing its value and availability. The introduction of new Bitcoin ETFs and increasing investments from institutional investors signify a growing acceptance and stabilization of Bitcoin in the broader financial landscape.
This shift towards more mainstream investment vehicles and the significant capital inflow from institutional sources underscore a robust confidence in Bitcoin’s potential, even in volatile markets.
6. Your Health
Investing in one’s health is an essential, non-negotiable aspect of personal and financial well-being. This importance hit home when a client’s friend, who had just retired and achieved wealth, tragically passed away soon after. This unfortunate event serves as a constant reminder that all the money in the world doesn’t matter if you’re neglecting your health.
Prioritizing both physical and mental health—through activities like regular exercise, healthy eating, or mental health care such as therapy—is vital. It ensures we can enjoy the fruits of our labor and effectively manage the stresses associated with maintaining and growing our investments.
7. Personal Growth
From acquiring new certifications to diving deep into personal development, investing in myself has been a cornerstone of my journey. The pursuit of knowledge and skills not only enhances your value but also opens doors to opportunities previously unimaginable.
For me, becoming a Certified Financial Planner (CFP®) wasn’t just about adding letters behind my name; it was a transformative process that broadened my horizon and deepened my understanding of wealth building.
Obtaining degrees or certifications are just a few ways you can grow personally. Pursuing a new skill, whether to advance your career or a new hobby, enhances your life in profound ways.
8. The Side Hustle
Diving into side hustles has really changed how I work, turning fun activities like making YouTube videos, blogging, or creating digital products into real money-makers. It’s thrilling to see your passions pay off. This is why I often encourage people to explore different side hustles rather than trying to work overtime at their current employer.
Side hustles are key in today’s world—they boost your income and give you more security in a constantly changing job market. If you’re ready to stand out in 2024, pick a project that excites you and might also fatten your wallet.
The Bottom Line
As we approach the midpoint of 2024, the strategies listed here reflect diverse approaches to managing and growing your investments. From reducing debt to leveraging opportunities in real estate and cryptocurrency, each option serves a different risk profile and financial goal.
Adapting to the changing economic landscape is key, and whether you’re paying down debt, investing in markets, or enhancing personal health, each choice can contribute to long-term financial well-being. Keep your goals clear, stay informed, and adjust your strategies as needed to navigate through 2024 successfully.
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