Best Money Moves for 2024!
Take Care of Your Health: Health is Wealth
We often hear “health is wealth,” but let’s unpack that. While money is a powerful tool it can’t buy health or happiness. Prioritizing our health is crucial, not just for longevity but for the quality of life it brings. It’s about adding life to your years not just years to your life, enabling us to enjoy the fruits of our financial success.
Money as a Tool, Not the End Goal
Money itself isn’t the end-all-be-all; it’s a means to an end. It provides us the freedom to pursue our passions, spend time with family, travel more, and quite simply live life on our terms. And living life on our terms is paramount to a quality life and good health. I mean, who wants to be stuck in a miserable 9-to-5 they hate for 30 years? Money can be our ticket out of personal hell(s), but it’s just a tool. And what good is a tool if we’re not healthy enough to use it?
Personal Commitment: Less Alcohol, More Whole Foods
This year, my goal is to cut back on the IPAs and stouts and ultra-processed foods. It’s not just about losing my beer gut; it’s about feeling better, having more energy, and being my best for my family. I’m focusing on whole, nutritious foods and mindful drinking – small lifestyle changes, big health benefits.
Remember, taking care of your health is the best investment you can make. It’s about making conscious choices every day that add up to a healthier, happier you.
Get Off Social Media
In our digital-driven world, social media’s allure is undeniable. It keeps us connected yet often at the cost of our mental health and precious time. Reducing your social media and cell phone usage might be one of the wisest decisions you make this year.
Don’t Believe the Hype
“Don’t believe the hype” like Public Enemy. Social media is a showcase of life’s highlight reels, rarely reflecting the full truth. Constant exposure to these perfected images can lead us down a harmful path of comparison, igniting feelings of inadequacy and life dissatisfaction. This psychological impact is significant, distorting our view of reality. Remember, everyone’s journey is unique; measuring our progress against a social media facade is futile and misleading.
Reclaiming Our Time and Lives
The time we spend in endless scrolling on social media could be invested in meaningful, real-life experiences – be it hobbies, self-care, or spending quality time with loved ones. Moreover, it’s not just about cutting down on social media; it’s about putting our phones away altogether. Let’s make a conscious effort to be fully present in our activities. Whether it’s enjoying a family meal, immersing ourselves in a movie, or delving into a great book, our full engagement makes these moments richer. The goal is to strike a balance, using technology as a tool to enhance, not detract from, the quality of our lives.
Remember, in the world of personal finance and investing, clarity and focus are invaluable assets. So, as we head into the new year, let’s prioritize these for a more balanced and financially savvy life.
Expand Your Income Streams
In 2024, let’s make it a priority to boost our income. After all, the more you earn, the more you can invest, putting you on a faster track to building wealth and achieving your desired lifestyle. Let’s explore some strategies to do just that.
Embrace the Side Hustle
The gig economy is booming post-pandemic, offering endless opportunities. Whether it’s leveraging your professional skills in freelancing, turning a hobby like dog walking into income, or crafting and selling online, these side gigs can beef up your bank account. Every bit counts towards hitting your financial targets. Find your niche, monetize your passion or skill, and watch your savings grow.
Launch a Side Business
Kicking off a side business can be a game-changer. Many have transformed their side gigs into flourishing enterprises. From starting a food truck, diving into drop-shipping, or offering consulting services – the options are vast. Yes, it takes commitment, but the financial and personal growth payoff can be immense.
Develop Passive Income Streams
Passive income, the money you make with minimal ongoing effort, is a cornerstone of financial freedom. It could be from rental properties, investing in dividend stocks, or creating and selling digital products. The initial setup might be a grind, but the long-term payoff? Absolutely worth it. Just look at the success stories of rental property investments – consistent income, plus the appreciation of the property over time.
Ask for a Raise/Abandon The Ship
Sometimes, the easiest way to increase your income is right where you work. Skill up, take on more responsibilities, and look for raise or promotion opportunities – and ensure these come with financial perks, not just fancy titles. Don’t forget the power of negotiation; a well-strategized approach can make a real difference. For those looking to sharpen their negotiation skills, “Never Split the Difference” by Chris Voss is a must-read. And if your current workplace no longer offers the opportunities, you desire don’t be afraid to abandon the ship and look elsewhere. At the very least have an understanding of your value and the current market.
By embracing these strategies, you can take significant steps toward increasing your income in 2024 and beyond, bringing you closer to your financial aspirations.
Get Out of Debt
In your pursuit of financial well-being in 2024, it’s time to break free from the chains of debt and redirect your money back into your own pockets. Here are three crucial steps to help you get out of debt and secure a more stable financial future:
Pay Off High-Interest Credit Cards
I’m a credit card rewards enthusiast, but only when used responsibly. With U.S. credit card interest rates averaging around 24.37% at the end of last year, credit card debt can seriously crush your financial goals. If you find yourself in this situation, start by prioritizing the payment of your high-interest cards. This will immediately save you money on interest and put you back on the path to financial recovery.
Create a Budget and Stick to It
We’ve all heard it before, but it’s true – establishing a budget is an essential tool for managing your finances and reducing debt. You don’t necessarily have to give up your morning Starbucks coffee, but it’s important to be aware of where your money is going. Fortunately, in 2024, there’s a plethora of apps and tools that can help automate this process for you. Check out some of the best budgeting tools available today here. Sticking to a well-planned budget will empower you to allocate more resources towards paying down your debts.
Explore Debt Consolidation Options
Debt consolidation can be a game-changer for your debt repayment strategy. It involves combining multiple debts into a single, lower-interest loan or credit card. This approach can reduce your monthly payments and streamline your debt management, making it easier to stay on track. It’s an excellent choice if you find yourself buried in debt from various sources. If you’re also looking to improve your credit score, check out my article here.
By consciously following these steps, you’ll not only make significant progress toward becoming debt-free but also position yourself for a more prosperous and financially secure 2024. Remember, every step you take to reduce your debt brings you closer to realizing your financial aspirations.
Stop Saving and Invest: Growing Your Wealth in 2024
Now that you’re out of debt and saving money again, it’s time to shift gears. Instead of stashing away every penny, it’s time to put your money to work and embark on the journey of investing. In 2024, let’s explore why it’s essential to prioritize investing over excessive saving.
Prioritize Long-Term Growth
While saving is crucial for short-term financial security, investing offers the potential for long-term wealth growth. When you put your money into investments like stocks, bonds, real estate, or mutual funds, it can grow your money at a significantly faster rate than traditional savings accounts. The power of compounding interest is magical and can significantly amplify your wealth over time. Check out my article here about how to get started.
Beat Inflation
We’ve discussed this in the past so you know that inflation erodes the purchasing power of your money over time. If your savings aren’t earning a rate of return that outpaces inflation, you could find your money losing value in real terms. By investing, you have a better chance of keeping ahead of inflation and preserving your wealth.
In 2024, it’s time to reevaluate your financial strategy. While saving remains important for emergencies and short-term goals, don’t let excessive saving hold you back from the potential rewards of investing. By prioritizing investments for long-term growth, you can secure your financial future and work towards achieving your wealth-building goals.
Stay Tuned for Part Two later this week, where we’ll delve into a few more essential money moves you need to make for 2024.