Understanding your money as you navigate our current economic situation.
The rate of inflation has declined from 9% to 3% since last summer, indicating an economic recovery. As a consequence of an aggressive rate hike cycle, the Federal Reserve’s objective of restoring price stability is working. We’re now approximately 17 months into this rate hike cycle, and I’d wager that most customers have felt some sort of impact.
The rate of inflation has declined from 9% to 3% since last summer, indicating an economic recovery. As a consequence of an aggressive rate hike cycle, the Federal Reserve’s objective of restoring price stability is working. We’re now approximately 17 months into this rate hike cycle, and I’d wager that most customers have felt some sort of impact.
Evaluate any emergency savings money on a regular basis.
Setbacks might occur no matter how well you plan. Expect the unexpected when it comes to plumbing, electrical, and automobile maintenance needs. When these difficulties happen, having and keeping a healthy emergency fund might be beneficial. Reserves can be kept in an easily accessible savings or money market account, which offers a good rate in this climate.
Set financial objectives and comprehend the entire financial picture.
Whatever the economic climate, it’s critical to focus on your personal finance objectives. Here are a few to remember:
- Make retirement a priority. Contribute enough to your employer’s 401k plan to qualify for corporate matching. If that isn’t an option, consider a regular or Roth IRA.
- Understand your loan payments, interest rates, and if your rates are fixed or variable. Determine your monthly debt payment percentage in relation to your take-home salary.
- Understand the difference between desires and necessities. Keep track of and examine any other “must haves” such as utilities, food, petrol, insurance, clothing, and so on. A large-screen television does not fall within this group!
- Determine how much money is left over for amusement, discretionary expenditures, and, most importantly, wealth accumulation!
Reflect on your financial progress on a regular basis.
There are several personal money monitoring resources available on the market, including our Money Management tool. Recognize that perfection in terms of your financial strategy will not happen every month. The trick is to continue to tweak and develop.