The Chinese people celebrate the New Year on unique dates. 2024 is the Year of the Dragon, and the animal holds a special place in Chinese culture. The wooden dragon is the fifth animal of the 12 Chinese zodiac signs and the rabbit is the previous one. The dragon is also mythically associated with high birth rates, unlike the other 11 animals.
The dragon is known for leadership qualities such as power, charisma, authority, passion and creativity. Did you know that these traits have profound implications for your personal financial journey in 2024?
Historically, stocks have averaged a real return of 7.7% during the dragon years The Economist AND BusinessInsider. According to Forbes, the years 1941, 1952, 1965 and 1989 were very strong for the stock market.
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Dragons are full of vitality and energy and are visionary and goal-oriented. They have a high sense of identity among all the animals in Chinese astrology. The dragon comes with tons of confidence, idealism, and benevolence.
Each new year is also associated with one of the five elements: earth, wood, fire, metal and water. This year is the Year of the Wood Dragon, offering abundance and longevity. Many people will buy homes, start families and have children.
People born in the Year of the Dragon are idealistic and independent thinkers who always want their community to benefit. They are altruistic and desire support and love. Dragons are powerful animals and you can use their characteristics to achieve your financial goals.
Here are five ways you can use dragon traits to achieve financial stability in 2024:
1. Leverage your financial power.
The power of the dragon is always expressed in the roar of the animal. It is also a symbol of assertiveness in decision making. Financial power or strength is the foundation that allows individuals to pursue their goals. It also provides individuals with resources that enable them to meet their financial obligations and weather economic challenges. You should be assertive in making decisions about your savings goals and gathering resources to ensure you pay your bills and invest wisely.
It is important to note that financial strength ensures that you are in a good financial position and have the utmost confidence in pursuing your goals. Accessing your credit reports will help you with information about your spending and savings. Visit AnnualCreditReport.com to access free reports from the three credit reporting agencies, TransUnion, Equifax and Experian.
Be sure to harness your financial strength and align it with the powerful energy of the dragon. This alignment will ensure you build financial stability with a cash reserve and a safety net to protect you from unexpected events. For example, after you set up the foundation, you can build wealth by participating in employer-sponsored retirement plans or by opening a Roth IRA or 529 plan.
2. Set your ambitions without fear.
When defining your ambitions, you should be as fearless as the dragon. To achieve financial prosperity you need to proactively address financial challenges. You should have a plan on how to implement your financial decisions. Set long-term goals, build a diversified investment portfolio, and stay informed about market trends. Like a dragon carefully guarding its treasure, protect your financial assets with prudence and foresight.
3. Match the dragon’s passion and creativity.
With their majestic and wild nature, dragons generate a passionate and creative spirit that catalyzes financial empowerment and innovation. You are encouraged to align your financial pursuits with your deepest personal passions. Creative approaches to budgeting and saving are not only recommended, but become a dynamic means of achieving your financial goals.
This year invites you to pursue business ventures with unmatched fervor, as Dragon energy thrives on bold and innovative ventures. You can use life insurance to address the income needs of survivors, succession planning for a business, wealth creation, and estate planning. Take advantage of higher interest rates on cash through high-yield savings accounts, money market accounts and CDs.
4. Be visionary.
The dragon is a visionary animal with traits of benevolent leadership. Visionary thinking involves challenging assumptions and evaluating new opportunities. Whether it’s adding unconventional assets to your portfolio, like commodities, or embracing cutting-edge financial technologies, the dragon’s influence encourages you to think outside the box.
Investing in commodities can help address inflation risk and reduce the overall volatility of your portfolio. For example, in 2022, cash and commodities delivered positive market returns, while stocks and bonds experienced market declines. In 2023 all the main stock market indices closed the year 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 difficult year for raw materials .
5. Focus on diversification and discipline.
Sometimes the most challenging aspect of investing is staying invested. Embrace financial discipline to ensure you achieve your goals. You need to be visionary and diversify your investment portfolio. Just like the dragon, seek all the support you need from financial planners and stay fully focused.
This article was written by and presents the opinions of our contributing consultant, not Kiplinger’s editorial staff. You can check advisor records with SEC or with FINRA.