In Review: Top 5 Wealth Themes from 2022
/As we move into the last few weeks of the year, I want to leave you with a few wealth themes from 2022. Remember, tomorrow is also the last day of the 50% off sale of my paperback book. If you missed the details, check out last week’s blog post.
Well, I hope that you can slow it down in these last days of 2022 so that you can reflect on all that this year has meant to you - the good, the bad, and everything in between. Our 2022 simplicity theme is even more important to revisit during this holiday season.
As blogger Anne Peterson eloquently stated in her post The Theory of Sprawling Holidays: “We’ve evacuated the holiday of the rest and respite that it’s supposed to provide, and the reaction to that loss isn’t to create less accompanying work, but more of it. It’s a counter-intuitive reaction, but most coping mechanisms are — particularly when encouraged by contemporary capitalism, which both creates, widens, and exploits our feelings of lack.” Take some time for rest and respite.
Here are my top 5 wealth themes from 2022.
Invest aligned with your values. I am disgusted by how much air time Twitter’s Elon Musk and FTX’s Sam Bankman-Fried have received from traditional media. That said, the attention brings to light how a company leader’s actions and beliefs can destroy company value, result in mass chaos amongst a company’s employees and other critical stakeholders (e.g. customers, partners), and ultimately negatively impact investors’ wallets. Be wary of individual company leaders or investors who impose their own values (or lack thereof) onto a company that you may be invested in. Instead, I encourage you to invest in companies and opportunities that align with your values. I wrote earlier this year about potential investment opportunities in companies like McDonalds, which is focused on generating social returns as well as financial returns.
Pay attention to the short term, but keep oriented toward the long term. We cannot control what the stock market or the economy will do or how it will perform. If you’re like me, you have been affected by volatile stock markets, higher prices due to inflation, and labor shortages. The reality is that these short-term phenomena directly impact our ability to save, invest, or simply live the lifestyle that we want. But, please keep in mind a long-term view. Do these market setbacks offer opportunities in other ways? What actions can you take (or not) to preserve and grow your capital? Go back and read my posts on Bed Bath & Beyond, Spotify, or Sherwin-Williams to orient you toward a long-term view.
Remember real estate. In a higher interest rate environment, the cost of purchasing real estate rises if you are financing the transaction with a loan. If you are selling a property, it might become harder to unload your property since a potential buyer now has an effectively higher monthly payment if he/she is financing the transaction with a loan. I talked about the difficulty in selling a home earlier this year. Albeit a buyer or seller of real estate property, unfavorable market conditions such as higher interest rates create stress in the system that can potentially lead to non-participation in the real estate market. If you are not participating in the real estate market in one way, think about how you can still participate in another way. For instance, is there a passive real estate investment opportunity that you can invest in that requires minimal sweat equity from you? Can you plan your finances so that you will be ready to re-enter the market even more competitively down the line? Real estate as an asset class offers diversification to your portfolio. Finding alternative ways to participate in real estate is even more important these days because “American home buyers are older, whiter and wealthier than at any time in recent memory, with first-time buyers accounting for the smallest share of the market in 41 years,” according to a recent New York Times article, Older, White and Wealthy Home Buyers Are Pushing Others Out of the Market.
Make career moves consistent with what you need. For many people, 2022 marks a period of transition on the career front. I’ve received lots of questions from Charisse Says members on how to make the appropriate decisions for one’s career. My methodology is simple (notice a pattern?):
Pray about it, or tap into whatever power guides your life
Consider what needs you have in the next potential career move - professionally and personally
Seek advice from trusted advisors
Be honest with yourself as it relates to why you are moving careers
Make career moves that feel right in your gut
Repeat to 3.1.
Surround yourself with the right support. I have been consistently beating the drum on this last theme ALL year. If you need a refresher, check out my previous blog on how my four generations trip illuminated the benefit of accepting help. In short, the right support can come in the form of physical, emotional, or spiritual support you need to thrive. If you’re not getting the right support, then you need to find other sources of support from your network or tap into a network that you respect and trust, and know has benefited others.
Wealth is not a solo sport, but rather a collective endeavor. Utilize the support around you to generate the wealth you want.
A Wealthy Girl Corner
As I get ready for these last few weeks of the year, I will be focused on one of my most important assets - a new child. George and I are expecting Baby Johnson #2 in January 2023. As we prepare for our second child (a baby girl), and Gabrielle prepares to be a big sister, these 2022 themes resonate loud and clear for me.
Whatever thing you might be birthing (literally or figuratively) or concluding, my hope is that you think about one of these 2022 themes and apply it to your life.
