The Chinese celebrate the New Year with a unique date. 2024 is the Year of the Dragon, and this animal holds a special place in Chinese culture. The wood dragon is the fifth animal in the zodiac, and the rabbit is its predecessor. Dragons, unlike 11 other animals, are mythically associated with high birth rates.
Dragons are known for their leadership qualities such as power, charisma, authority, passion, and creativity. Did you know that these characteristics will have a significant impact on your personal finance journey in 2024?
Historically, real returns for stocks during the Age of the Dragon have averaged 7.7%. economist and business insider. According to Forbes magazine, the stock market was very strong in 1941, 1952, 1965, and 1989.
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Dragons are full of vitality and energy, visionary and goal-oriented. They have a high identity among all the animals in Chinese astrology. Dragons represent a lot of confidence, idealism, and compassion.
Each new year is associated with one of the five elements: earth, wood, fire, metal, and water. This year is the Year of the Wood Dragon, which brings fertility and longevity. Many people will buy a house, start a family and have children.
People born in the Year of the Dragon are idealistic and independent thinkers, always wanting to benefit their community. They are selfless and crave support and love. Dragons are powerful animals, so you can use their characteristics to achieve your financial goals.
Here are five ways you can use your Dragon traits to achieve financial security in 2024.
1. Harness economic power.
The power of the dragon is always expressed by the roar of the animal. It also symbolizes positivity in the decision-making process. Financial and physical strength are the foundations for individuals to pursue their goals. It also provides individuals with resources that enable them to meet their financial obligations and withstand financial hardships. You need to be proactive in determining your savings goals and gathering resources to ensure you can pay your bills and invest wisely.
It is important to note that financial strength gives you the greatest confidence to be in good financial shape and pursue your goals. Accessing your credit report provides information about your spending and savings. Visit AnnualCreditReport.com to access free reports from three credit bureaus: TransUnion, Equifax, and Experian.
Make sure you tap into your financial power and align with the powerful energy of the Dragon. This collaboration ensures that you build financial security with cash reserves and a safety net to protect you from unexpected events. For example, once you've laid the foundation, you can build wealth by participating in an employer-sponsored retirement plan or opening a Roth IRA or 529 plan.
2. Set your ambitions without fear.
When setting your ambitions, you must be fearless like a dragon. Achieving financial prosperity requires proactively addressing economic challenges. You need to have a plan for how you will implement your financial decisions. Set long-term goals, create a diversified investment portfolio, and stay informed about market trends. Like a dragon carefully guarding its treasures, protect your financial assets with prudence and foresight.
3. Align your Dragon's passion and creativity.
With its majestic and natural nature, the Dragon engenders a passionate and creative spirit that fosters economic empowerment and innovation. We encourage you to align your financial pursuits with your deepest personal passions. A creative approach to budgeting and saving is not just encouraged, it is a dynamic means to achieving your financial goals.
This year, you are invited to pursue entrepreneurial ventures with unparalleled zeal, as Dragon energy thrives on bold and innovative endeavors. Life insurance can be used to address the income needs of survivors, business succession planning, wealth creation, and estate planning. Take advantage of higher interest rates on your cash through high-yield savings accounts, money market accounts, and CDs.
4. Be proactive.
Dragons are visionary animals with benevolent leadership traits. Visionary thinking involves challenging assumptions and evaluating new opportunities. Whether it's adding unconventional assets like commodities to your portfolio or adopting cutting-edge financial technology, the Dragon's influence encourages you to think outside the box.
Investing in commodities can help address inflation risk and reduce overall portfolio volatility. For example, in 2022, stocks and bonds alike experienced market declines, while cash and commodities delivered positive returns in the market. All major stock indexes ended 2023 with positive returns: 14% for the Dow Jones Industrial Average, 24% for the S&P 500, and 43% for the Nasdaq, but 2023 was a tough year for commodities. Ta.
5. Focus on diversity and discipline.
Sometimes the most difficult aspect of investing is staying invested. Adhere to financial discipline to ensure you reach your goals. You need to be proactive and diversify your investment portfolio. Like a dragon, seek all the support you need from your financial planner and stay sharply focused.
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This article was written by and represents the views of our contributing advisors and not of Kiplinger's editorial staff. To check your advisor's records, SEC or together finra.
