Each year I look forward to the new year and where I should be focusing my attention. In 2021, I said that I would focus on Tesla even after it had a stock split. Tesla did well. I do believe the electric vehicle industry will continue to be strong so I’m not planning to sell any of my positions in Tesla. I do, however, believe 2022 will bring some volatility. With expected multiple interest rate hikes planned this year, inflation, and the continuing battle with Covid-19, this year will be a little bumpy. My focus in 2022 will be to continue investing in the market as well as paying off debt which the only debt that I have is my mortgage.
We haven’t seen interest rates go up in a couple of years. What will that do to consumer spending? Higher interest rates means it costs more to borrow money. Taking out a mortgage, auto loan, or line of credit will cost you more. When prices are higher, people will think twice before making that transaction. With so many uncertainties, people will act more conservatively and I anticipate more people will try to keep their money versus spending it.
With that said, I plan to keep on track with my current investment goals: Maximizing my 401K, reinvesting my dividends, finding ways to lower my taxes, understanding tax laws, contributing to my children’s 529, real estate investing, and paying off my mortgage early.
Paying off all my debt has been a goal of mine especially mortgage. The thought of not having to pay a mortgage is something I’m striving for. Paying additional principal has helped knock down my mortgage balance year after year. Others might say that I could have used that extra money and invested it. That maybe true but since I’m already maximizing my 401K and reinvesting my dividends, I feel that I have room to put extra money towards the mortgage.
Will I make a dent? Slowly but it does have an impact. Similar to compounding interest, the earlier you invest the longer it’ll have to grow. The earlier you try to pay off your mortgage, the quicker you’ll be able to pay it off.
My financial goals for 2022 really haven’t changed. I’m doing everything I normally am doing but watching for what the interest rate hikes and inflation will do to the economy. We know there will be multiple interest rate hikes so how does that change my focus this year? My focus is to maintain course and eliminate all my debt. That’s my focus in 2022. If you are interested in following my journey, email subscribe to get alerts of latest posts or follow me on Facebook, Instagram, and Pinterest.
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