Top 10 Tips to Boost Your Savings in 2024

Are you looking for more in 2024? These are the stocks and ETFs to get you there as well as top strategies for turning your savings into massive growth.

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It looks like 2024 might be the year that investors see the market return to normal. But we’re not there yet. This is why now is the time to start thinking about how to boost your savings in 2024. This can help you create more income to protect you against future volatility and take advantage of a recovering market.

With that in mind, today, we’re going to look at 10 tips to get you there. Let’s get into it. 

1. Maximize TFSA contributions

The Tax-Free Savings Account (TFSA) allows Canadians to grow their investments tax-free. For 2024, ensure you contribute the maximum allowable amount. Use this account for investments with higher growth potential, such as equities or exchange-traded funds (ETFs), to take full advantage of the tax-free growth.

2. Diversify your investments

Diversification reduces risk and can improve returns. Spread your investments across various asset classes, such as stocks, bonds, real estate, and commodities. Consider ETFs like iShares Core S&P/TSX Capped Composite Index ETF for broad market exposure or Vanguard FTSE Canada All Cap Index ETF for a mix of large-, mid-, and small-cap stocks.

3. Invest in dividend stocks

Dividend-paying stocks provide a steady income stream and potential for capital appreciation. Canadian banks like Royal Bank of Canada and Toronto-Dominion Bank have a history of strong dividend payments. Also, consider utility companies like Fortis for their stable dividends and growth prospects.

4. Utilize RRSPs for retirement savings

Contribute to your Registered Retirement Savings Plan (RRSP) to benefit from immediate tax deductions and tax-deferred growth. Use these savings to invest in a mix of assets, including equity mutual funds or ETFs. Popular options include iShares MSCI World Index ETF (TSX:XWD) for global diversification.

5. Automate your savings

Set up automatic transfers to your savings and investment accounts. This ensures consistent saving and reduces the temptation to spend. Automate contributions to both your TFSA and RRSP to stay on track with your financial goals.

6. Consider low-cost index funds

Index funds offer diversification at a low cost. They typically have lower management fees compared to actively managed funds. ETFs like BMO S&P/TSX Capped Composite Index ETF are excellent for broad exposure to the Canadian market with minimal fees.

7. Invest in growth sectors

Identify and invest in sectors poised for growth. Technology and renewable energy are two sectors with strong potential. Consider stocks like Shopify for tech exposure or Brookfield Renewable Partners for renewable energy investments.

8. Reduce high-interest debt

Paying off high-interest debt is a guaranteed way to boost savings. Interest rates on credit cards and personal loans can significantly eat into your savings. Focus on paying down these debts quickly to free up more money for saving and investing.

9. Regularly review and rebalance your portfolio

Regular portfolio reviews ensure your investments align with your financial goals and risk tolerance. Rebalancing involves adjusting your asset allocation back to your target mix. This might mean selling high-performing assets and buying underperforming ones to maintain your desired risk level.

10. Take advantage of government grants and programs

Make use of government incentives like the Canada Education Savings Grant for Registered Education Savings Plans or the Home Buyers’ Plan if you’re saving for a home. These programs can significantly boost your savings with additional funds or tax benefits.

Bottom line

Whether you decide to take advantage of all these tips or just a few, investors can certainly get in on 2024 growth and income. But while still remaining safe when it comes to your future investment goals. So, don’t fret; use these strategies to get through 2024 on a high.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has positions in Brookfield Renewable Partners, Royal Bank Of Canada, Shopify, and Toronto-Dominion Bank. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Brookfield Renewable Partners and Fortis. The Motley Fool has a disclosure policy.

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