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The only constant in our world is change, right?
The financial world is no exception. No, we’re not talking about the reshuffle of the executive floors of the JPMorgan Chase building in Manhattan — but you might not even notice the day-to-day changes happening.
These are what you have to pay attention to.
We caught up with one of our own in-house financial planners, Robin Hartill (you may know her as Dear Penny), and she gave us an early look at the big financial issues that could arise in 2022.
More importantly – she tells us how to make sure you’re ahead of them.
Here are some of the biggest changes happening in the world right now, and what you can do to keep your money safe.
1. The housing bubble may burst
Housing costs have soar Since 2021 – but that’s not news to anyone. “New construction hasn’t kept up with demand, so prices have skyrocketed — but it’s hard to know what they’re going to do,” Hartill said of this year’s rise in house prices. ‘Because we’re still so short on housing’
Some believe those crazy prices are just evidence of a pandemic-related shopping spree that has sparked bidding wars and sent people into contracts for $50,000, $100,000 or more over the listed price.
Is it a bubble? perhaps. Fortune called it a “great deceleration” because home price increases are slowing. Prices haven’t fallen, but they haven’t risen as fast.
But here’s the thing: “Everybody needs housing,” reminds Hattier. “But even if you can’t afford real estate – you can’t afford your own house – you can still invest in real estate.”
Rather than putting down a down payment on a home that could lose value and leave you in trouble, consider other investment options. Real estate isn’t impossible either — just not as you originally planned.
One A company called Fundrise Get your start in real estate by giving you access to a low-cost, diversified private real estate portfolio. The best part? You don’t have to be a landlord. Fundrise does all the heavy lifting.
Fundrise’s Starter Portfolio starts as low as $10 for first-time real estate investors. Your money will be invested in the company’s flagship fund, which already owns more than $250 million worth of real estate across the country, from apartment complexes to the red-hot housing rental market to larger last-mile e-commerce logistics centers.
Want to invest more? Fundrise offers a variety of account levels and features to suit the needs of all types of investors. Once invested, you can track your performance and observe asset acquisitions, improvements and operations on Fundrise’s website and mobile app. You make money through quarterly dividend payments when tenants pay rent, and over time from the potential appreciation of the property. Fundrise investors have only received about $100 million in dividends since 2014.
So if you want to start the real estate investment field, it only takes a few minutes Sign up with Fundrise and create an account.
2. The big banks may try to squeeze more money out of you
Hatier said that as interest rates rise, that’s a good thing for lenders — not so much for those who need to make money.
She hopes we’ll start to see some higher APY and people will earn more interest on the money they have in the bank, but those big multinational banks that have brick-and-mortar branches every few miles in your town are trying to pass Take advantage of unsuspecting customers.
That’s why Hartill recommends switching to online banking. They don’t have the overhead associated with a physical building, so they have the ability to give you a higher APY instead of hoarding it yourself.
“If you want to maximize the interest you earn on your bank account, then online banking is the way to go.”
An online account is called desire, which allows you to earn up to 83 times the average interest on the funds in your account. 83! That’s not a typo.
Plus, you can get up to 10% cash back when you make certain purchases with their debit card.
Please enter your email address here Get a free Aspiration Spend and Save account. After confirming your email, securely link your bank account so they can start helping you get extra cash. Your money is FDIC insured and they use military grade encryption which is what nerds call “it’s completely safe”.
3. Social Security could change significantly
Every year, the government makes adjustments to Social Security benefits. Sometimes it gets better, other times…not so much. Either way, you need to understand what these changes mean for you and make sure you’re still on track for a stable retirement.
For example, Social Security benefits increased by 5.9% — the largest increase since 1982 — due to cost-of-living adjustments. But on the downside, Hattier said, it’s because of runaway inflation. “Social security quotas have generally not kept up with inflation – costs for older people may rise faster than inflation due to medical bills and housing.”
That underscores the importance of saving for retirement because you don’t want to rely on Social Security benefits in your prime years, Hatier said.
That’s why you should invest in your retirement as soon as possible. “It’s important to get as many 401(k) matches from employers as possible.”
Starting in your 20s is best, but it’s never too late to start putting money into retirement accounts.Especially if your employer matches every contribution – this could mean a few millions Extra dollars in the account in retirement. This is free money!
However, if you cannot take advantage of this employer benefit because you need all your paycheck each month, a company called Lendtable will give you cash.
We know it sounds too good to be true. However, if your employer has a 401(k) matching plan, this is money they have already assigned to you. By using Lendtable, you will be able to unlock that free cash.
Let’s say you make $50 a year and your employer matches your 401(k) contribution to 4%. If you put $0 into a retirement account this year, you’ll get $0 from your boss. If Lendtable lends you 4% of the salary your employer is willing to match, you get $2,000 from your boss, minus Lendtable’s fees. (This comes from the extra money you earn, so you don’t have to sacrifice.)
It takes three minutes to answer a few questions about your eligibility and sign up for an account.
Once you get your full matching amount from your employer, LendTable will get back the money they lent you, along with a small percentage of your profits. If your retirement account provider is penalized for withdrawing funds, Lendtable will also cover that fee.
Your risk is essentially non-existent, so not using your employer to match Lendtable’s offer will make you, future millionaire, bow your head in shame. start here.
4. Inflation could get out of hand
This is not an assumption. In 2021, inflation will rise to nearly 7%—the highest level in 40 years. But our salaries did not increase to suit the occasion. That means our cost of living has gone up significantly in the last year, no matter where you live.
“The money in your bank account can’t keep up with inflation, no matter how much [interest] You get it,” Hartill explained.
To get past the crazy prices we’ve seen on groceries and gadgets and get your money going further, you should take advantage of all the discounts available. Inflation rates can seriously affect your day-to-day life, but we swear there are some apps that can save you money.
- groceries: A free app called Fetch rewards you with gift cards when you snap a grocery receipt.You can Download the free Fetch Rewards app here Start getting free gift cards. Over 11 million people already have it, so they have to make a difference.
- Online Shopping: This Free service Alerts you when you’re about to overpay on thousands of sites. Plus, it automatically applies the best discounts – and gets you cash back.
5. Interest rates are rising
When interest rates rise, as they do now, they can affect many different aspects of your finances.
For example, credit card interest rates are already near record highs. Hattier warns that if you have a balance, it will cost you more money to pay it back as interest rates keep increasing.
“Look at what you can do to get out of credit card debt,” she says.
a website called Anichi can help.
If you owe your credit card company $50,000 or less, AmOne will provide you with a low-interest loan that you can use to pay off every balance you have.
benefit? You are left with a bill each month to pay.And thanks to lower interest rates on personal loans (AmOne rates start at 2.49% APR), you’ll be free of debt That Much sooner. Also: No credit card payments this month.
You don’t need a perfect credit score to get a loan – comparing your options won’t affect your score at all. Plus, AmOne keeps your information private and secure, which is probably why, after 20 years in business, it still has an A+ rating from the Better Business Bureau.
In less than a minute, just 10 questions See which loans you are eligible for — You don’t even need to enter your Social Security number. You do need to provide AmOne with a real phone number to qualify, but don’t worry – they won’t spam you.
6. The stock market may make a correction
The stock market can be unpredictable — but in most cases, it’s a long-term investment that’s likely to pay off, as long as you don’t need the money for years to come (like your emergency fund or down payment, Hattier) Say).
“In any given year, the stock market has a 75% chance of giving you a positive return. In 10 years, there’s a 90% chance. The stock market has never lost money in over 20 years,” Hartill explained.
More than once! Hattier told us that if you have the ability to keep your money the same for the long term — and invest in the entire stock market, not just one or two companies — the stock market is a very reliable wealth creation, she says By.
Investing in the stock market can feel overwhelming or out of reach for non-millionaires, but using a tool called Tibetan, it doesn’t have to be. It lets you become a part of what is usually reserved for the richest — on Stash, you can buy work from other companies for as little as $1.
That’s right – you can invest in well-known companies like Amazon, Google, Apple, and more for as little as $1. The best part? If these companies are profitable, so can you. Some companies even send you a quarterly check for your share of profits, called dividends. 1
takes two minutes Sign up, and it’s completely safe. With Stash, all of your investments are protected by the Securities Investor Protection Corporation (SIPC)—the industry mantra, “Your money is safe.”2
Also, when you use the link above, Stash will give you a $5 signup bonus once you deposit $5 into your account. *
1Not all stocks pay dividends, and there is no guarantee that a dividend will be paid each year.
2It is important to note that SIPC coverage does not guarantee a potential loss of market value.
Fractional purchases start at $0.05 for securities priced over $1,000.
*Offers are subject to promotion Terms and conditions. To be eligible to participate in this promotion and receive the bonus, you must successfully open a personal brokerage account in good standing, link a funding account to your investment account, and deposit $5.00 into your investment account.
Paid non-customer endorsements. See Apple App Store and Google Play reviews.View Important disclose.
Investment advisory services provided by Stash Investments LLC, an SEC-registered investment advisor. This material is for informational and educational purposes only and is not intended as investment, legal, accounting or tax advice. Investing involves risk.
*Past performance is not indicative of future results.Publicly filed offering circulars by issuers sponsored by Rise Companies Corp. (not all of which may currently meet SEC requirements), which can be found at www.fundrise.com/oc.
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