Money Musings 💭 ✌️out 2020 (almost)
As we close out 2020 this month (good riddance - ✌️!), it’s a natural time to think about the coming year.
You might have seen the meme - “the stupidest thing I bought in 2020 was a planner.” Yep - 💯.
I think we can all agree that if we looked at our original 2020 plans, they’d be unrecognizable. I’m talking plans for our money, plans for travel, plans for our careers, all of it.
A skill many of us have honed this year is adjusting our plans. And I do think this will serve us well in the long-run because - whoever really knows!? Life happens, who moved my cheese 🧀 (remember that book?) and all that jazz.
With all this uncertainty around what our lives will look like it can feel almost silly to make plans. Haven’t we learned our lesson? I hope not - I’m still going to recommend doing it.
Maybe we can rename them “plans” (in air quotes) to better reflect what they really are. Our 2021 “plans” and goals are a best guess at the moment. Hopefully fueled by our desires and intentions, and will require frequent adjusting to stay relevant.
That’s okay - checking in and adjusting is what Money Parties 🥳 are for!
So whatever your 2020 rollercoaster 🎢 ride looked like, take some time before year-end to dream a little and make some “plans.” Definitely give more weight to your January or first quarter goals than your December or fourth quarter goals, but don’t abandon the task completely.
If you want more support in reaching your money goals (everything from budgeting and getting your credit score up to understanding and investing your 401(k)), learn more and register for our Financial Adulting Course.
PS The deadline to put more money aside for 2020 in your 401(k) is December 31st. It's a great way to minimize taxes!
MONEY MOVE OF THE WEEK
Share your #1 money goal with one person. Having a financial Dream Team can make it a lot easier and fun to reach your financial goals. BUT the idea of sharing your money goals with your closest friends and family can feel like quite a daunting task. Start by sharing your #1 (top priority) money goal 💰 with one person.
Choose the person you feel most comfortable with. Maybe it’s someone you already talk to about money or who holds you accountable for other goals. When we share what we are out to accomplish with the people we are closest to (who love us the most) we give them the opportunity to support us in our goals. 💚 They can also hold us accountable.
For a fabulous group of feminist money buddies, join our private (and free) Fiscal Femme Slack Community!
YOU GOTTA SEE THIS
Stocks, bonds and mutual funds, oh my. These are some of the most commonly used investing jargon. As Savvy Investors, we want to know what they mean.
Define: STOCK. When you own a share of stock, you own a piece of a company (albeit a very small one). You might also hear it called “shares” or “equity.” Use it in a sentence - “I own stock in General Motors, which is one of eight Fortune 100 companies with a woman CEO.” 💁♀️
Define: BOND. When we buy a bond, we’re essentially lending someone money - usually a company or government. And in return, we get our money back plus interest. There is an agreed upon interest rate which is why a bond is also called a fixed income investment (we get back a fixed amount). Use it in a sentence - “10% of my retirement portfolio is invested in bonds.” 💵
Define: MUTUAL FUND. A mutual fund is a type of investment that’s made up of pooled money from investors (aka us!). This pool of money can be invested in stocks, bonds or a combination of both.
Mutual funds are a great way to diversify (i.e. not put all of your investment eggs in one basket) because by owning one share you can own stocks or bonds in hundreds of companies.
There are many many types of mutual funds. Index funds are a type of low-fee mutual fund. There are also mutual funds with high fees and commissions.
Use it in a sentence - “I’m a fee ninja when it comes to choosing my mutual funds. Fees come directly from my profits so you know I am minimizing those fees!”
Want to keep the investing knowledge coming? Join the 3-month Savvy Investor Course and I’ll teach you everything you need to know to be a confident and competent investor.