2021: Money Lessons

I will preface this by saying that I am not a financial analyst or a stockbroker or an investor. I am a woman interested in smart financial moves and because of my Journalism degree, I am insatiably curious about many things - including finances.

2021 is about to come to a close and it has taught me many lessons, but managing money has looked different for me this year. Take what you will from this and leave what you’d like, but these are the money lessons 2021 and the pandemic have taught me.

Prioritize Both Saving and Spending

Every time we savers have denied ourselves that manicure or those concert tickets probably resulted in an equal amount of impulse buys. As someone who has major shopping anxiety stemming from really inconsistent money management, I have learned to be intentional about both saving and spending.

We live in a consumer-driven world. That is the cold hard truth, and in order to participate, you have to spend some money. So I have learned to make it a priority to save a percentage of my income while also prioritizing spending my budget on the things that make me happy; like toys for my dog and shoes.

If you constantly deny yourself the things you desire, you might go overboard. Make a plan that prioritizes both saving and spending and get on with your knitting hobby.

Get a High Yield Savings Account

And put that sh*t on autopay. Also, don’t be surprised when your “high yield” is not so high after a while. There is a thing called economic uncertainty which causes stock prices to dip. This directly affects your APY. But a high yield savings account will still get you more bang for your buck than a regular-old savings account.

The national average as of November 2021 was about 0.06% APY. High yield savings can get you closer to .5% or .6%. So even though it sounds small, the longer you keep your money there the more you’ll see a return.

Use The Right Credit Card

If you can be trusted with a credit card, make sure it’s providing you with benefits. Some of the best beginner credit cards offer cashback on purchases and other benefits. I was once told that the whole point of a credit card should be that you get incentives for spending. While that is true for some, the reality is that many people use credit cards to simply pay their bills and meet basic needs.

In this case, a low APR or no APR for a period of time is the best option for you. Make sure you’re also paying attention to your cash-back incentives. Many credit cards require you to “select” certain categories like grocery or gas to get a higher percentage of cashback.

I am not a financial expert, just a girl navigating this capitalist world. So if you’re looking for more professional financial help, find a vetted financial planner or use resources like NerdWallet or Investopedia.