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Investments you should make in 2024

By Thabo Baxa

As we step into the new month, with JanuWorry past us, it is important to consider how we can make smart investments to secure our financial future and general well-being so that we can finish 2024 strong. Here are investments you should consider making this year to set yourself up for success.

Invest in yourself

The smartest and most profitable investment you can make is in yourself. You are your most valuable asset, with your mind capable of unlocking boundless opportunities. Prioritize learning and self-development because those who learn more earn more. Channel your time, energy, and resources into improving your skills and expanding your knowledge base. You can focus on learning technical skills that can move your business forward or honing your leadership abilities to uplift your team; investing in yourself is the ultimate key to success. And remember, it’s not just about the destination; it’s about the journey. Embrace a mindset of lifelong learning, committing to becoming a better version of yourself each and every month. The sky’s the limit when you focus on constant and never-ending improvement.

Invest in your business
The second most important investment is your business. When it comes to wealth, it’s not just about how much you make but also about how much you keep. Remember to pay yourself first. This can be challenging, especially for independent contractors and business owners who rely on their business for personal income. However, allocate at least 10% of your income and reinvest it back into your business. Use this capital to buy advertising. You can advertise locally in newspapers like The Guardian and digitally on platforms like Facebook and Google.

Additionally, consider investing in software for running your business, such as accounting software for record-keeping, CRM software for managing customers and automating your marketing efforts, or acquiring better equipment that will help grow your business and streamline operations. By prioritizing these investments, you’re not only reinvesting in the success of your business but also setting the stage for long-term growth and profitability.

Invest in others
Relationships are the cornerstone of both personal and professional life, offering support, guidance, and connections that enrich our experiences. Investing in close relationships is key to cultivating a solid support system. Start by strengthening bonds with family and friends through quality time, acts of kindness, and meaningful conversations, providing a strong foundation to navigate life’s challenges. Additionally, invest in staff relationships, understanding their strengths and aspirations to boost morale and drive business success. Collaborative partnerships with suppliers are essential for business operations, fostering open communication and mutual respect.

Finally, prioritize customer relationships by understanding their needs and continuously improving their experience, cultivating loyalty and driving long-term success.

Invest in listed financial products.
Now that you’re earning money and you’re paying yourself first and increasing your cash reserves, it’s time to make your money work for you. A key strategy to grow your wealth is by investing in listed financial instruments that generate passive income, allowing you to earn while you sleep. These instruments include:

Stocks: Investing in stocks grants you ownership in a company, offering the potential for growth and profitability. With careful research and a diversified portfolio, stocks can be a lucrative avenue for long-term wealth accumulation.

Bonds: Bonds are debt securities issued by governments or corporations, providing fixed interest payments over a specified period. While offering stability and income generation, bonds are an essential component of a balanced investment portfolio.

Mutual Funds: Mutual funds pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other assets. Managed by professionals, mutual funds offer convenience and diversification for investors seeking broad exposure to the market.

ETFs (Exchange-Traded Funds): ETFs trade on stock exchanges like individual stocks, providing flexibility and lower expense ratios compared to mutual funds. They offer efficient exposure to various asset classes, sectors, or regions.
Cryptocurrency: Cryptocurrency, such as Bitcoin or Ethereum, presents a new asset class with the potential for significant returns but also heightened volatility. While inherently risky, investing in cryptocurrency can serve as a hedge against traditional financial markets and provide diversification benefits.

Invest in property
Investing in property, whether it’s your home or place of business, is a cornerstone of wealth building. Real estate has long been hailed as a pathway to financial success, with many millionaires attributing their fortunes to property investments.

Residential properties
Investing in residential properties, whether through direct ownership or real estate crowdfunding platforms, offers the potential for steady rental income and long-term appreciation. Residential real estate provides stability and serves as a tangible asset that you can leverage for wealth accumulation.
Commercial properties, including office buildings, retail centres, and industrial warehouses, offer higher rental yields and income potential compared to residential properties. You can invest in buying a commercial property to operate in and save on rental or you can buy commercial real estate for investment purposes. While investing in commercial real estate requires careful market analysis and understanding of tenant dynamics, it can yield lucrative returns for savvy investors willing to do their homework.

Thabo Baxa.

REITs are publicly traded companies that own and operate income-generating real estate properties. My investment portfolio is made up of multiple local and international REITs that generate handsome returns. Investing in REITs provides exposure to diversified real estate portfolios without the need for direct property ownership. REITs offer attractive dividend yields and liquidity, making them a popular choice for income-oriented investors looking to add real estate to their investment portfolio.

Investing is not just about accumulating wealth; it’s also about making strategic decisions that yield long-term benefits for both yourself and those who rely on you. Whether you’re aiming for financial security, personal and professional growth, or improving your quality of life, investments are instrumental in shaping our future trajectory. It’s time to take decisive action and make intelligent investments that will pave the way for a brighter tomorrow.

Whether you’re considering financial instruments, real estate, business growth, or personal development opportunities, prioritize thoughtful decisions that align with your goal. By investing wisely in 2024, you’ll be laying a solid foundation for a prosperous and fulfilling future.