2022 year in review: 5 lessons I learnt this year.

It’s never a bad year for everyone.

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What a year 2022 was! The year had its highs, lows, and mid-points. The year defiled logic and economic theories. Economies had started recovering from the depression and negative growth that was caused by the lockdown in the prior year. Many economic experts expected that the year 2022 was going to consolidate the growth and see things return to near-normal if not fully normal. However, the year came with different shocks. Different economies started experiencing ballooned inflation rate, devaluation of currency, negative growth, war, stock and crypto crash, bond restructuring, supply chain disruption, layoffs and business closures. The S&P 500 (It is an index that monitors performances of top 500 companies in the US stock market) is down 18%. As at June 2022, crypto market capitalization was in negative 55%. Despite of all these challenges, here are 5 money lessons I learnt in 2022

1.       Your savings will save you: This is perhaps the most important lesson I learnt this year. I had a lot of impromptu expenses to settle in the first half of the year and my income could not meet those obligations. It was the money I had saved in previous years that saved me. Savings is not just a component of finance, it’s a lifestyle. You can’t choose whether you want to save or not. It’s not a debate. You have to plan for the rainy season because life happens, and it happens unannounced.

2.       Diversify your investment:  2022 looked promising for the bond, stock and crypto markets. Companies had started recovering from the 2021 meltdown, churning out positive operating margins and the crypto market was bullish. People wanted to have a taste of the good life and in the process, got their fingers burnt. The markets did not reward investors this year. Folks who diversified their investments early enough were able to spread the risks and losses. Remember, you’re better off when you diversify your portfolio.

3.       Play Big: Opportunities abound everywhere and if you continue to play small, you won’t grow into full stature. Every challenge presents an opportunity for growth. Be vocal about your craft. Tell people what you do. Your business won’t grow if you are only patronized by family members. 2022 taught me to see possibilities. There is no enjoy in playing small.

4.       Relationship is key: At a certain level of growth, relationship becomes the key that unlocks the next level. You can’t make it alone. You need people. Please note that I didn’t use “networking”. Relationship here means you are willing and able to offer value. You show up for people. You give more than you receive.  Never forget, a forest is made up of several trees.

5.       Go for Information: 2022 separated those who had invested in financial education and the ones had not. I know people who were saved from wrong investments because they had gained knowledge on certain aspect on investment. Information is not cheap but always pursue it. Remember, ignorance is more expensive.

There are people that triple their income during the year, I know folks that received offer letters for international jobs, many started their side businesses, several companies were born this year and some economies grew to a new height. It’s never a bad year for everyone.

I will write you next week on what to expect from this newsletter in 2023. Also, I will let you know what I think 2023 will look like.

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Your Finance Coach,

TL.