16 things we've learned about money in 2024
Why, hello there. If you’re a long-time reader, you know what this newsletter is about. Here’s what I wrote last year:
Well, we’re three days away from 2024. Housing is still stupid-expensive, interest rates are still high although there are rumours they might continue to fall and food is still expensive.
Two of the three of those statements are still true. Housing and food is still stupid-expensive. Interest rates are down compared to last year but we’ll see what happens with future cuts from the Bank of Canada, the US Fed and incoming President Trump.
Also, I know it’s November but I’ve decided I’m taking December off from writing this newsletter. I would like the time to be more offline, spend time with family and friends and to plan 2025. Also, do you really need me whispering in your ear about overspending and budgeting right now? We all know this and I respect you to know that you know.
As always, here’s my list:
The economy is doing fine but if you’re not personally seeing or feeling those benefits, then it’s not doing fine. These two things can and are existing at the same time.
We need to stop talking about just the ‘middle class’ when talking about money and affordability. Where’s the discourse for ‘working class’ people? I put both terms in quotes because the definitions of both seem to change on a regular basis and honestly, if we work, we’re some form of working class.
Money is emotional for all of us. Even billionaires. Especially some billionaires who seem to spend all their time emoting all over the place and inflicting it on us. Right now we want to make more and keep more of what we have. See my first point.
Billionaires are not money, legal, digital, space, general efficiency or any kind of expert. Stop looking to them for advice. They’re there for themselves and they will protect themselves at the cost of your health, finances and other well-being.
Changes are coming. We don’t know what yet but they will affect the cost of things. Yes, people did look up tariffs according to Google trends. The peak was November 7. Wild. That could mean prices going up next year.
Talk to your friends about salaries, bonus structures, rates, retainers, negotiations, etc. You don’t have to tell them how much you make if that feels awkward, but share negotiation tactics, wording, encouragement and your network if you feel comfortable.
We’re more likely to not be able to cover our expenses than be billionaires. Sorry, you’re not going to be super-rich next year.
Inequality probably will get even worse next year.
There is nothing wrong with wanting to build up money as a form of protection against coming cuts, and what could be dystopian changes that will affect many marginalized and racialized groups.
Don’t feel bad if you start stress-saving but don’t make any knee-jerk financial decisions without thinking them through. (Check out The Cut article in This week’s readings.)
You can’t personal finance your way out of everything. This is not a reflection on you. You can’t personal finance your way into a house if your salary legit can’t get you a down payment because housing is evil-villain expensive.
That being said, you can leverage personal finance to support the politicians who support what you support like rent control.
Good personal finance practices can help you manage your money to a certain extent. What it can’t do is fix systemic poverty, which is the bigger issue.
It also can’t fix the wage gap or systemic racism.
Money is politics. I said that last year, and I continue to say it.
When people show and tell you who they are, believe them.
Invest in yourself.
This week’s readings:
Statistics Canada studied the effect of Taylor Swift. Guess StatsCan is a Swiftie, not a member of the Beyhive. A Swift effect on the economy? (Statistics Canada)
sighs Americans would rather talk about politics and religion than their finances. (The Motley Fool)
Here’s a whole explainer on tariffs. What are tariffs? (The Conversation)
I’m going to put a little more away next year. Are You Stress-Saving? (The Cut)
Saver vs spender: How relationships can work despite different money habits (Globe and Mail, paywall)
An Edmonton-area woman thought she’d met ‘Mr. Wonderful.’ It ended with her being convicted of money laundering. (Edmonton Journal)
Here’s how much workers need to be paid to make a livable wage in Toronto (Toronto Star)
By me: You’ve saved it, now spend it: Why are some retirees so reluctant to spend money when they can afford to? (Toronto Star)