Do This to Make Your Money Work for You in 2022 and Beyond – Entrepreneur

Do This to Make Your Money Work for You in 2022 and Beyond – Entrepreneur

The events of 2020 and 2021 have reshaped our world in innumerable ways, resulting in work-model shifts and mass layoffs that led an increasing number of people to question the status quo when it came to their professional and financial lives. This past November, a record 4.5 million people quit their jobs, and the Great Resignation shows no signs of slowing soon. 

Maybe you’re ready to pivot to entrepreneurship or make some essential money moves. Whatever your situation, 2022 can be the year you start setting and meeting new goals. Entrepreneur asked three personal-finance experts how you can most effectively put your money to work for you this year. Her First $100K founder Tori Dunlap, DigitalNomadQuest founder Sharon Tseung and Chloé Daniels from Clo Bare Money Coach share what you can do to set yourself up for financial success today and all the days that follow. 

Below, Her First $100K founder and Financial Feminist host Tori Dunlap discusses personal-finance fundamentals that will give you a strong start.

Negotiation is an ongoing process, not a one-time event

It’s estimated that women lose almost $1,000,000 over their lifetime to the wage gap. Couple that with the inflation we’ve seen in the last year, and there’s never been a better time to negotiate your pay. If it’s been more than six months since you’ve met with HR, schedule a meeting and bring every big and little win you’ve had alongside reputable salary data to the table. Talk to your colleagues about compensation, and advocate for yourself if you realize you’re making less than your counterparts. If a monetary raise is off the table, there are other benefits to negotiate such as vacation time, health insurance and 401k matches. 

Negotiation is like riding a bike: Once you’ve gotten the hang of it, it gets easier every time.

Make the most of your tax-advantaged retirement accounts

In my Beginner’s Guide to Investing episode of the Financial Feminist podcast, I talk about the biggest mistake I see new investors make. Often, thinking that simply opening an account is “enough,” they forget that just because the money is in an IRA doesn’t mean it’s invested in the market. A brokerage account, IRA or 401k is only a container — you still have to decide where you want to spend that money. 

The second is not taking full advantage of employer matches and maxing out tax-advantaged accounts. An employer match is free money, and taking advantage of that should be a priority. January is a great time to set goals around investing to make sure you get the most out of these accounts.

Debt payoff is a good thing, but it’s not always a priority

A great frustration of mine is seeing advice that warns young people specifically to pay off all of their debt before they start investing. While I agree that high-interest debt like credit cards and certain other loans over 7% interest should take priority, you can still invest while paying off lower interest debts like student loans. This is because the market, on average, has a return rate of 7% — meaning your money will work harder …….


Personal finances