As the year 2022 comes to a close we can’t help but muse that it has been a turbulent one especially as far as money matters are concerned. With many countries defaulting, economies crashing and inflation posing a risk at a record high, it has become increasingly important to learn from the financial trends of 2022 to protect your money in the upcoming year.

Here are our top 5 takeaways from 2022 that we hope you can learn from and better gauge in 2023:

1)     Always maintain a Rainy Day Fund

An emergency fund is the necessity of the hour. With rampant uncertainty and sky high inflation, it has become crucial to save at least three to six months’ worth of living expenses in the case of emergencies. You can be praised by your superiors at work one day and be let off the next morning as the company aggressively downsizes, which is why we advise keeping an emergency fund aside in a conveniently accessible savings account. This provides a nice cushion despite the devaluation of currency due to inflation and can cover the basic expenditures including housing, fuel costs, utility bills and grocery.

2)     Tighten your budget and never spend more than 100% of your salary

You should always aim to save money when times are good because you can never be sure of the future. Try keeping a track of your cash inflows and outflows to check your high spending areas. This will help you control your budget. This year saw many people incurring debt and falling prey to bankruptcy. The best way to avoid that is to strongly scrutinize your spending pattern and working actively to eliminate the need for loans and debt.

3)     Scaling up comes often comes with added stress

One of the modern day dilemmas is the difficult choice between contentment and money. While the urge to switch jobs and grow career wise is real, it can’t be ignored that more money often equates to more time and efforts on your part. Too often acquiring access to more money equals to increased stress, less time for family and unhappiness in the long run. Whenever faced with a choice, ask yourself this important question; is it worth my extra energy or am I fine with what I currently have?

4)     Finance Is All About Knowledge. The More You Know the Better off You’ll Be

We can’t stress enough on the importance of financial literacy and actively reading up on key terms and concepts to become adept at managing finances better. In short, the more you know about your financial matters, the less you have to rely on others and pay them excessively for their financial advice.

5)     Nothing is more valuable than time

Making money requires leveraging your assets and resources, but nothing beats the value of time. Our tip is never to trade your time for money. Try looking at other strong points that you can utilize instead of your most valuable asset; time, to create wealth.