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  • Writer's pictureDamilola Agubata

Top Three Financial Lessons of 2021

The year 2021 came with its twists and turns. For some people, this was a year of leveraging skills acquired during the Coronavirus-imposed 2020 lockdown to move forward in their respective careers. And for others, this was a year of bouncing back from losses incurred during the pandemic that shook the entire world in the previous year.

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In spite of all these, there was a common goal on the minds of everyone this year: financial stability. Staying afloat despite the tumultuous economic situation became a necessity and not just a mere wish. Although no one desired to be caught unawares this year, 2021 still presented some major lessons to be learnt.

In this article, we have decided to share with you the three major financial lessons that 2021 taught everyone.

An emergency fund is necessary

A major financial lesson that 2021 taught us all is that not having an emergency fund is not only unwise but also risky. The unexpected increase in the prices of goods and services including other government policies that were implemented this year are all a pointer to this fact.

Technically, an emergency fund serves as an umbrella to cover you through unplanned financial storms. Those who had no emergency fund to fall back on in 2021 suffered the worst hit from inflation. Hence, if there’s anything at all that 2021 taught us, it’s that an emergency fund should not be an option but a must.

A diversified investment portfolio is crucial

2021 definitely taught us that diversification of investment portfolios is the best way to be protected against unsystematic risks. It’s quite good to have an emergency fund, but it is usually with a short-term goal. Diversifying your investment portfolio, on the other hand, allows you to have a long-term goal.

Times have changed. You should prepare ahead for financial market volatility. Diversifying your investment portfolio is a good way to do so. This year, thankfully, we provided more investment opportunities for everyone.

Retirement savings is essential

2021 has taught us that there’s no way you can continue working hard without having a portion of your active income allocated to securing your retirement. To spend all your earnings on your present needs without planning for the future is to be penny-wise pound-foolish.

Moreover, the Multi-Fund structure introduced by the National Pension Commission (PenCom) has provided pension contributors with adequate investment options. Therefore, there’s no reason you should not start saving towards your retirement now.

2021 has taught us that there’s no way you can continue working hard without having a portion of your active income allocated to securing your retirement.

If you did not own a retired savings account (RSA) in 2021, it’s not too late to start now. Your RSA is money set aside from each paycheck and deposited with a Pension Fund Administrator (PFA) for a financially stable life in retirement. To save for retirement, open a Retirement Savings Account (RSA), and have 10% of your income go into your RSA. For more information on RSAs, contact Oak Pensions via, or call the Marketing Manager on 09087448661.



Damilola Ayomide Agubata is a Content Writer with a background in digital journalism. A graduate of English from the University of Lagos, Damilola has driven engagement and visibility for different brands and organizations with a strong focus on SEO and Content Marketing. She currently works as a Content Associate for Detail and Avedia, a leading retail and media consulting firm.


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