As you close out the books on 2023, you might be thinking to yourself: “Next year is it. 2024 is the year that I get rich!” You won’t be alone, as hopes to strike it big financially in the upcoming year is a typical resolution.
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It’s also not out of the realm of possibility. After all, lots of people have been able to smartly invest their money, time, and energy into accumulating wealth — why not you and why not in 2024?
GOBankingRates reached out to some financial experts for their thoughts on sound money tips for building wealth that apply specifically to 2024 and why it’s a good year to get rich. Here are a few tricks of the trade to keep in mind for next year.
Maximize Your Retirement Contributions
Whether you have a 401(k) or IRA, it might be best to up your monthly or biweekly contributions to maximize tax advantages and compound growth. Diversifying investments across various asset classes, including stocks, bonds, and real estate, remains crucial to mitigate risk, according to Liam Hunt, an analyst and content director at Sophisticated Investor.
Specifically for 2024, Hunt notes that “with interest rates potentially stabilizing, now is the time to refinance any high-interest debt, which can free up more funds for investing.”
Hunt also recommends taking advantage of any dips in the stock market to buy quality stocks at lower prices.
“Staying informed about emerging sectors, such as green technology or AI, could uncover growth opportunities,” said Hunt. “The key in 2024 is to balance traditional wealth-building strategies with a keen eye on the evolving economic environment to capitalize on unique opportunities that the year may offer.”
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Put Your Money in Sustainable Investing (ESG)
“In 2024, sustainable investing will gain prominence as businesses prioritize environmental, social, and governance (ESG) factors,” said Brian Quigley, founder of Beacon Lending.
ESG investing is starting to become more popular as effects of climate change become more severe and hopes to minimize future catastrophes are on investors’ minds.
“Consider investing in companies with strong ESG practices, as they tend to exhibit resilience in the face of global challenges,” Quigley said. “Look for industries contributing to sustainability, such as renewable energy, electric vehicles, and green technologies, aligning your investments with positive societal and environmental impacts.”
Take Advantage of Better Interest Rates
Many expect interest rates to drop in 2024, with projections for the year to remain fairly stable and on par with other years following similar trends.
“This creates an opportune time to consider investing in real estate or other assets that benefit from borrowed funds,” says Graham Loosley, a qualified FCCA (Fellow of the Association of Chartered Certified Accountants) at Mercian Accountants.
Buy Real Estate
Real estate investments are going to be a mainstay in 2024 with interest rates likely to retreat from their highs. Quigley advises those looking to make money to “capitalize on favorable lending conditions to strategically invest in properties with growth potential” in 2024.
“Explore emerging real estate markets or consider property types aligned with evolving societal needs, such as sustainable housing or remote work-friendly spaces,” he said. “Conduct thorough market research and financial analysis to make informed investment decisions.
Hunt agrees that the upcoming year could provide some better opportunities.
“The housing market, expected to normalize after the recent boom, presents potential for strategic real estate investments,” Hunt said.
Embrace Technological Transformations
As digitization and automation ramp up momentum in 2024, Loosley encourages investors to embrace new technological trends, calling this mindset for getting rich “crucial.”
“The ongoing advancements in technology continue to shape various industries, opening up new avenues for wealth creation,” Loosley said. “Investing in emerging technologies or innovative businesses can help individuals position themselves for potential financial gains and capitalize on the growing digital economy.”
“Technology is changing our lives in every aspect,” echoed Brian Dudley, a financial advisor at Wealth Enhancement Group, noting that in 2024 and years to come there will be opportunities to find companies that are a part of this ever-evolving space.
“AI seems to be only in its early phases, so there will be companies that move along this path that will benefit from growth in the future,” Dudley said. “If you qualify, it might make sense to look at private companies that are yet to move to public markets (or do not intend to) in hopes of added returns.”
That being said, there are some pitfalls in the new technological landscape to be wary of, including…
Be Cautious of Cryptocurrency
“While cryptocurrencies continue to be a focal point, exercise caution in 2024,” warns Hunt.
Between the fall of FTX and other companies like it, crypto — once seen as the great new currency — is now under more scrutiny and skepticism than ever before. Lots of people who thought they were going to get rich via crypto in years past have watched their money disappear in one way or another.
“Stay informed about market trends, regulatory developments, and potential risks,” Hunt advised. “Consider allocating a portion of your portfolio to cryptocurrencies as a speculative investment, recognizing the volatility, and conducting thorough research before making decisions.”
Be Consistent With Your Strategy
Do your research. Investigate a few investment options. Draft a plan. Implement the action steps. And if it’s all going well…stick to the plan of making your money grow.
“One key aspect of building wealth is consistency with strategy,” Dudley said. “This does not mean you have to invest in the same asset class at the same intervals, but rather, you have to create a savings strategy where a portion of your money is being put to work for you systematically.”
That being said, if you need to pivot or revise your strategy at some point down the line, make sure to thoroughly investigate all your options first. It might be the right move, but maybe not the right time.
“We don’t know 100% what 2024 will bring, but if the economy slows and stock and/or real estate prices drop, there may be opportunities to buy great investments on sale,” says Dudley.
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This article originally appeared on GOBankingRates.com: How To Make 2024 the Year You Get Rich
