Planning For Uncertainty
In an effort to cool off the economy, on July 27, 2022, the Federal Reserve Board increased interest rates by .75 points. When the Federal Reserve Board increases interest rates it has a ripple effect that will eventually increase the interest rates on automobiles, mortgages and credit cards.
Now is a time to get back to the basic money management. Here are some tips to manage your money during these uncertain times:
==> Spend with intention. Pay attention to where your money is going, spend on those things that you need and defer your wants until later in the future.
==> Add money to your emergency fund. Advisors recommend saving 3-6 months of basic living expenses. However, if you are a business owner, you may consider saving closer to 9-12 months. Decide what is best for you and your family.
==> Continue to invest in the stock market. If you are saving for a retirement that is 10+ years away and your portfolio is well diversified. Don't allow the dip in the stock market to force you into making rash decisions.
==> Look for investing opportunities. There will be investing and wealth building opportunities regardless of business cycle.
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