Six money predictions that should influence your financial decisions in 2022

Trying to forecast the future can be a challenge, but recent trends in the money world and predictions from financial experts offer a window into what 2022 may have in store for us. From rising interest rates to advice for those wanting to start their side hustle, financial coach David Lester shared his tips on how to make the most out of your money this year. 

Interest Rates Will Rise 

We're seeing interest rates starting to rise so now is a good time to renew your mortgage and lock in a better rate. Talk to your banker about blending your mortgage or getting the lowest rate you can. If you have two years left on a five-year mortgage, you can blend the rate and save some money. 

Bumpy Stock Markets 

 Keep your deposit money out of the market because we could see some dips as we've seen in the past. If you're planning on retiring this year, talk to an advisor about taking some money out of riskier stocks and plan for your retirement. 

Inflation Will Continue to Rise 

Inflation is going to keep raging, so an easy win is to stock up on non-perishables and frozen food for the year—things like coffee, meat, orange juice, and toilet paper. Anything you can freeze or store in your pantry. Talk to your advisor about buying stocks that you can use to offset the rise in their profits. For example, if you think gas prices will keep going up, buy an ETF with oil stocks, or pharmaceuticals as they roll out the booster shots. 

TIP: RRSPs are popular but TFSAs are fantastic long-term wealth accumulators. Set it and forget it with a monthly auto-invest and use unused contribution room. Plus, it will be tax-free in retirement. 

Debt Will Go Through the Roof 

Our debt isn't going anywhere, especially mortgage debt. Talk to your advisor about re-mortgaging all other debts into your mortgage and reducing the amortization so that the amount is more manageable. Going from a 25 year to 20-year mortgage or even a 15 to a 10-year mortgage could save you thousands over the year. TIP: Round up the amount you can pay per week. For example, if the payment is $435 a week, set it at $450 a week and save thousands. 

Taking Advantage of 'The Great Resignation' 

With the pandemic, everyone is evaluating their lives and some are even quitting their job.  This is a great opportunity for you to ask for a raise, so make a proposal and state your case. 

This is also a great time to start that side hustle you've been wanting to venture into. The great resignation is all about people doing what they love and you should too! Even if you just make $50 a week, you can bank as extra money. Ideas include renting a room,  or even a parking spot. Get into the habit of making money from the skills and assets you have to beef up your income. 

Teaching Your Kids About Cryptocurrency

If you teach kids how to balance a chequebook, it won’t be long before they get bored and lose focus. But, try teaching them about financial literacy with terms like Bitcoin and cryptocurrency, and you’ve probably got their attention. Kids are becoming more and more interested in cryptocurrency. Learn together by reading articles with them, opening wallets, watching TikToks, buying some NFTs and more. This is the future and helping your kids understand it will only benefit them in the long run.