As you enter into a new year, resolutions and goal-setting take priority for many. While some people plan for better health, others plan for better family commitments, and others prepare for their financial futures.
To be on a better financial footing in 2023 than in previous years, you need to focus on increasing your revenue options and paying down and cutting your expenses.
Pay Off High-Interest Debts
Part of your financial goals should be to eliminate high-interest debts that can be burdensome. An example of high-interest debts may include credit cards that burden your budget.
Another form is any student loans that require monthly payments and may be challenging to pay off.
Besides simply paying more on your high-interest debts, you can research low-interest loans to consolidate your debts and make a single payment that will help accelerate your overall debt repayment.
Invest In Long-Term Opportunities With Growth Potential
Investing for the long term requires making decisions based on potential future events versus past performance.
That said, some outliers may occur that cause a shock to the economy, such as the black swan event that was the pandemic, but if you plan a diversified strategy, you’re better equipped for all contingencies.
A black swan event describes an event beyond the expected, predictable events, such as the 9/11 event, the housing crisis in 2008, the recent pandemic, and other events that come from nowhere. Still, in hindsight, there are warning signs.
For your investing strategy, it’s essential to focus on the potential of a stock or other investment rather than its past performance.
Another critical point is to avoid short-term trading of stocks. Long-term investing is essential for tremendous market success, as buy-and-hold strategies are generally more reliable and less risky in the long run.
Real Estate
Another way to be off better financially is to invest in safer, long-term opportunities like real estate. Real estate typically provides a hedge against inflation as the rate of appreciation and the growth of equity outpace the rise of inflation over the same time.
Additionally, real estate offers one rare opportunity to leverage money to make a sizable profit as a result. Leveraging is the process of taking someone else’s money, in this case, a loan, and turning that loan into a decent return.
There are multiple ways to get involved with real estate investing as a part of your long-term strategy, including;
- REITs
- Rentals
- Luxury Properties
- Wholesaling
REITs are a way for individual investors to pool their money and make regular dividends as a result. The advantage of REITs is that a group pooling its resources may have greater purchasing power than individuals.
Rentals provide another steady, passive income opportunity. However, with rentals, the investor will need to take ownership and management of the properties, which may be burdensome for some people.
Luxury properties may be challenging, to begin with, but can often provide high yields. Investors can pursue raw land for development or find underserved communities with low competition and high-profit potential.
For example, key tourist destinations or areas with a broad appeal may be a good starting point. While many exotic locations may need help finding a reasonable price to purchase, others, like the Bahamas, offer a lower price point and higher returns.
To get started in luxury real estate, you can check the following;
- Hawaiian Investment Opportunities
- Bahamas real estate listing
- Miami home searches
- Malibu property searches
- Land development opportunities in Paris, France, New York, or London.
Cryptocurrency
Despite the recent news of FTX’s bankruptcy, crypto offers a unique, aggressive way to invest and improve your financial situation.
Unlike other currencies, crypto gains its value from the overall supply of a coin and the demand for it. As a result, crypto has some volatility, providing opportunities for short- and long-term gains and profits.
Creating a healthier financial picture requires intentional planning and discipline to accomplish your goals. The sooner you pay down your debts and increase your savings, the more profitable your outcomes and the better financial picture you’ll have.
Having a strategy and following through with it will provide a better financial picture not just in 2023 but for your lifetime.
