Financial Habits | Charts of 2021 | Goats as Firefighters

Fresh Start: As we turn the corner into week 2 of the New Year, chances are many New Year’s resolutions are already broken. However, it’s not too late to develop some habits related to finances to help grow your wealth this year. According to Business Insider, four habits that have helped the most successful clients are:

Keeping a close eye on expenses
Setting goals for the future
Living below their means
Maximizing their HSA

If we can help you target any of these goals in your personal finances, don’t hesitate to let us know.

Charts of 2021: At Compass Ion, we can geek out a bit when it comes to financial charts. And here’s a few of our favorite from 2021:

(1) The stock market, as a whole, was basically devoid of volatility:

(2) A few areas were clobbered. Many stocks that soared in 2020 didn’t experience the same success in 2021. The ones in this chart were up between 139% and 396% in 2020 but now have a -58% to -68% drawdown.

(3) On the macro side, inflation dominated the second half of the year.

(4) The craziest inflation piece was the massive spike in used car prices.

If you’re interested in any of the other charts, reach out, and we can send you the full article.

Small Business Aid: The U.S. government is planning to provide $10 billion to aid startups in gaining access to capital in a bid to rev up business in disadvantaged communities. The goal? To spur broader economic recovery from the pandemic. The policy revives one initiated following the 2007-2009 recession but is six times larger than the cost of the earlier program.

Balancing Act: In 2022, the Fed faces the ultimate balancing act as it tries to quell the elevated pace of inflation without stunting the economic expansion. Three rate hikes are expected throughout the year, with the first expected in May. We’ll be keeping an eye on these factors throughout the first quarter and remainder of 2022.

Firefighting in 2022: We’ll never outgrow our need for firefighters, but one community in Australia is working on a new approach to help stop fires before they start. And the critical component? Goats. The idea is to send the animals into areas where brush and leaf litter can accumulate and act as fuel in hot, dry years. One of the biggest challenges? Keeping the goats on task. However, it is estimated that goats can chew through more than half an acre of dense vegetation in two weeks. Human ingenuity for creative solutions to things is always inspiring! Here’s to hoping the goats help!