Personal Finance

Tuning Your Finances For 2021

As of December 2020, we can officially say that we have entered a second wave of the Coronavirus. Outdoor seating is starting to close down and people here in California are becoming more cautious again. Also, the stock market has relentlessly shotup to higher highs since the March crash. 

How can we grow our finances in to 2021?


Most professionals in the Bay Area (pretty much techies who can work from home) were able to keep their jobs from the comfort of their bedroom and continued to save throughout the pandemic. White collar workers perhaps saved more during covid due to less expenses: Less traveling, less gas consumption, less going out to movies, theaters, concerts and less weekend eating/drinking with friends. 

Blue collar workers, trades people, skilled labor, janitors, servers, had their salaries severely affected by the pandemic.

I urge people to keep saving money. But I do not think people should sit on a stock pile of cash. Rather, put that money into some Index Funds that can get some nice gains over the next several years.

Smarter Spending

It’s harder to waste money when restaurants, theaters, malls, eateries, cafes are all shut down. People are probably saving more during the pandemic. On the flipside, people could be spending more money shopping online or Amazon. I stress people to continue to buy things they truly need or will use frequently. Put everything else on hold.

Investing In The Stock Market

This is why I wrote this article: Investing in the stock market is a great idea to keep growing your net worth. Find out how much you want to invest, break it into small pieces, and then buy in steadily into the markets.  There are plenty of funds out there like NASDAQ-100 funds that are giving a 20% return a year. There are also Vanguard funds that mimic the SP500 than can give you a 14% return. The Fed has turned on their printers and all this cash is hitting the markets causing inflation. We must invest so that we can beat inflation.

Historically speaking, the US stock market has consistently trended higher and higher. Past performance cannot tell us what will happen in the future, but I am willing to bet that we keep going higher.


If you have kept your job, can you get paid even more? If you lost a job, can you get a job? Strengthen your position whatever it is. Negotiating a new salary via another offer is a relatively efficient way to make more money. Use downtime to revampt your resume and LinkedIn. Maybe you can run a business from home?

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