ARTICLES

2022 could be officially termed as the year of learning and sustenance. After a huge outbreak and almost two difficult years of a global pandemic, 2022 was one of the most anticipated years for everyone, especially from a financial point of view. The economy saw a lot of ups and downs and so did each and every individual. 

Here are a few lessons learnt: 

Be patient but consistent:

Patience is the key to success, but consistency furthers the approach in financial matters. It is always advisable to invest patiently and consistently to have your future in better shape. 

Emergency:

We always consider emergency as synonymous with medical situations, however, the year 2022 and especially 2020-2021 taught us the fact that one needs to be prepared for layoffs too. With a predicted recession in the coming year, let’s start doubling our emergency fund. Click here to read about how to create an emergency fund.

Investing can help bear inflation:

2022 observed inflation in many aspects, from necessities to luxuries.  The high inflation made everyday necessities like food, clothes, and transportation expensive. In addition to that, inflation also diminishes the buying power of money. Hence, investing in equity through mutual funds or direct equities (depending upon risk appetite) can help to tackle inflation over the long term.

Fixed Deposits:

The increasing interest rates by RBI and many banks in 2022, created an urge towards parking money in fixed deposits, giving people an option of diversifying in different batches, depending upon their liquidity needs. For instance, now that the interest rates are hiked, instead of opening an FD of 10L for 5 years, one can bifurcate it into 4 different ones with respective maturity tenures. This will give them a chance to take maximum advantage of hiked interest rates instead of blocking a huge amount in one. 

However, as we just bid adieu to the year gone by, let’s make a conscious effort to unlearn the mistakes and learn the hits for the coming year.