If you are new to the world of investing, then there must be many questions that you may want to ask, like how much money you need, where to get started, what strategies you should opt for, and how much time it will require to make money.

During inflationary times, it may seem like you can just afford the rent, utility bills, and groceries with your paycheck, but once you have sorted out the budgeting for these months and have saved a few pennies in an emergency account, you are ready to start investing.

In our guide, we will discuss the no-brainer moves that you can consider before investing in 2024. Lets get started:

Building an Emergency Fund

You can start off by making an emergency fund account. According to experts, in 2024, interest rates may be lowered by the federal reserves. This means that you can pay off your debts with variable interest rates. Also, keep in mind it may also bring down the interest on saving rates, meaning you may earn less on your savings.

So, it would be better for investors to start saving money right away to cope with any uncertainty that might happen before the rates go down. Note that the average interest rate on savings accounts is very low that is 0.45%, which would make you want to keep your emergency cash in a high-yielding savings account.

You can earn 4% interest rates on this account every year. You can also consider other options that pay high-interest rates, like money market accounts and treasury bills, also known as T-bills, that may last up to 26 weeks, paying a 5% interest rate.

By considering these accounts, you can earn more interest rates that will remain the same throughout the duration of the T-bills.

Taking Advantage of Account Transfer Bonuses

You can leverage new account transfer bonuses as a beginner and can earn several thousand dollars in bonuses. To attract new customers and investors, many brokers offer incentives and cash.

But before choosing a broker, you should compare the best brokerage bonuses, and then you can select the broker that suits you the best.

However, other factors like fees of the brokers, investment options, and other tools and resources should also be considered by you.

You can also take into account a bonus sign-up option before choosing between the companies. One other interesting thing is that you are not bound to invest only in one company or broker. You are free to invest in different companies, explore different options, and take advantage by opening different accounts in companies as a new investor. In this way, you are able to enjoy the incentives given by the companies to the new customers.

Increase Your Retirement Contribution

If your employer is offering you advantaged retirement accounts like 401(k) or IRA, you should consider them and sign up right away. By signing this agreement, you will be contributing a small amount of your paycheck to your retirement account.

This is suitable for investors who are planning to invest after their retirement, and it is also a good way to secure your future. To maximize the tax savings and compound interest rates, you should consider contributing a decent amount of money to the retirement account. You can also put a portion of your yearly bonus into your retirement account.

Also, the amount you can save in your retirement account has been increased by the IRS. Now, you can save up to 23,000 dollars in your 401(k) or 7000 dollars in your IRA account.

Moreover, if you have saved up your money in your IRA account, then you can avail more options to invest your money even though in 401(k) you can save more amount than IRA, but it is less flexible and not so much tax-advantaged.

Hence, if you didn't put enough money to the allowed limit in your IRA in 2023, you still have time until the 15^th of April 2024.

Start Investing Right Now

You should start investing as soon as possible because if you are trying to understand the market and don't know where to start and are just waiting on the sidelines, then you are wasting your time because this will directly impact your money growth.

If you are wondering whether you can start with small investments, then the answer is yes. Now, starting off with low investment is easier than ever because of the low or no investment minimums, zero commissions, and fractional shares. There are also many options available for small investments like index funds, exchange-traded funds, and mutual funds.

Also, it doesnt matter how much money you invest. You should also consider your financial situation and financial goal before investing. Moreover, you should also work on your investment strategy plan.

For example, if you are planning for long-term savings, then all your money would be in stocks, and the best way to invest in stocks is through EFTs or index funds. On the other hand, if you are saving for the short term, then you will be better off utilizing online saving accounts and a low-investment portfolio.

Conclusion

The important factor that you must consider before investing is a proper strategy that should be based on the amount you are going to invest, your investment goals, and the risks associated with the investment.

Till the interest rates are high, don't forget to take advantage of your savings accounts and new account bonuses, as they can give you handsome returns.

Also, to take advantage of tax, increase your contributions to the retirement accounts. Also, there could be many risks associated with the investment you make, so it is better to invest wisely if you want to build wealth.