In 2022, much of Lifehacker’s personal finance coverage navigated a year of record-setting inflation, the promise of student debt relief, the threat of a housing crash, and of course, an ever-looming recession. Throughout this economic uncertainty, we’ve offered out best tips and advice to get through the still-shaky economic recovery in the fallout of the pandemic. Here’s a look at our most useful posts in 2022 that can still save you money in 2023.
All throughout 2022, reports of crashing stock markets and spiking consumer prices all pointed to the threat of a looming recession. Although the news is troubling, there are steps you can take to stave off panic and protect yourself as best as possible during a downturn. Earlier this year I spoke with personal finance expert Jen Smith, co-host of @frugalfriendspodcast and modernfrugality on Instagram, who shared her top tips for what you can do now to prepare yourself for whatever economic conditions are around the corner.
“Recessions make everything uncertain. Still, it’s in your best interest to keep a cool head. When we live in fear, we make worse financial decisions. While it’s important to take [certain] precautions, it’s unwise to let fear control your life.”
Lifestyle creep is the pattern of spending more money as you earn more money. In other words, you slowly but surely adjust to a more luxurious new normal. And luxury is relative; for many, lifestyle creep is the difference between living paycheck-to-paycheck and realizing you can comfortably order DoorDash multiple nights a week. Unfortunately, even small luxuries can add up.
“Living below your means doesn’t mean you need to live a life of austerity. Allow yourself to indulge occasionally in things that make you happy, especially if these indulgences improve your overall relationship with your money...This might look like splurging on a family vacation, but cutting back on ordering take-out. When you feel confident that you’re spending only on things you love and not wasting money on things you don’t love, you will make much better big financial decisions.”
Similar to our coverage of lifestyle creep, it’s all too easy to inadvertently spend more than you’d like be because of the company you keep. So, how can you resist financial peer pressure without tarnishing your relationships? Here’s our advice:
“Think up activities or propose locations that you know are within your budget. If possible, it also helps to take initiative with choosing restaurants and making plans, so you can avoid having to reject someone else’s expensive ideas. Here’s a list of ideas for social plans that won’t break the bank. If your friends insist on something you can’t afford at the moment, be ready to stick to your “no.” And if you’re constantly finding yourself in this uncomfortable position, it might be time to find new friends.”
Anyone can call themselves a “guru.” And so-called financial gurus are particularly annoying about it. Most of the time, their existing wealth gives them an air of authority about how you can become wealthy, when in reality, it makes them too far removed from regular financial woes to actually be useful. as we’ve said previously:
“What’s more, their advice makes broad assumptions about human behavior they likely know nothing about. How can you advise someone to always save 10% of their income when their priority is avoiding eviction or getting food on the table? At best, financial gurus spout platitudes that are generic and condescending. At worst, they’re pushing misinformation for their own financial gain.”
Another defining trend of 2022: Trying to understand Gen Z and Millennial attitudes toward money. Earlier this year Northwestern Mutual reported that 53% of Gen Zers and 52% of Millennials surveyed felt that making small daily purchases like a daily cup of coffee will impact their long-term financial security. As I explain here, the idea that avocado toast is to blame for an entire generation’s financial woes has been laughable for years now. But how much do daily indulgences really affect long-term finances?
“The same mindset that justifies a daily iced coffee might turn into an iced coffee plus a breakfast sandwich, plus an afternoon coffee, and on and on. This isn’t to say that you need to start cutting out all the small purchases that bring you much-needed happiness. It’s a mistake to villainize certain spending habits. The $5 iced coffee is not the enemy. Mindless consumption is.”
We could all use a personal finance primer, and former Lifehacker writer Sarah Showfety has us covered. She writes that “with so much conflicting financial advice available, it can be hard to keep it all straight, much less figure out which one is best for you.”
This piece is a useful debrief as to what kinds of personal finance approaches are old-fashioned, tried and true, and which others are trendy—popularized by financial experts with large media platforms. It’s one thing to hear about these buzzed-about strategies, but another to actually understand and apply them yourself.
From brutally high inflation to a record-high 7% mortgage rate, it’s been a rough year for prospective homebuyers. A lot goes into understanding this housing market, and it’s worth noting that in recent months especially, experts have been speculating whether this housing market holds the same ominous signs of a crisis like that of 2008. If you still dream of owning a home in the near future, what’s your timeline looking like?
Jeff Somers explains: “It all depends on 1) how much you earn, 2) how much you can save, and 3) where you’re saving that money. It’s important to remember that you have to have the down payment in hand before applying for a mortgage. Banks don’t like to see folks who have $11 in their savings account on Monday and then $75,000 in there on Wednesday thanks to a personal loan or gift from a relative. If you’re going to get some financial help from parents or other parties, get that in place long before you start house-hunting.”
Rounding out this list is a fun one: How much is your time actually worth? Lifehacker ‘s senior health editor Beth Skwarecki provides a breakdown of how you can put a price tag on the value of an hour of actually free time. She explains how by using a surge pricing model, “you get to decide how many ‘free time’ hours are available at the rate paid by your side hustle, and how many hours are available for surge pricing. If you have a stressful life or a chronic illness, that number might be zero, and your time may simply be ‘unpurchasable.’ When it comes to money you spend, this may mean that you will gladly pay an extra $200 to get home from your vacation early to have time to decompress.”