KANSAS CITY, Mo. – With a struggling economy, everyone is trying to stay afloat. Financial barriers, such as the fact that it is now more expensive to take out a loan, may weigh on some.
This week, the Federal Reserve raised its key rate by three-quarters of a point. This is the largest increase since 1994, and likely one of many rate hikes underway.
The rate hike will affect virtually all consumer loans, including credit cards, mortgages, home equity loans, auto loans and student loans.
Economists are worried about a possible recession next year. They say 401Ks are really hit right now, and when the stock market drops, those retirement funds suffer.
A local financial educator said this was a long-term goal.
“I strongly believe in, I preach, long-term investing,” said financial educator Mallory Baska. “You don’t lose money in the stock market unless you sell. If you have a long-term strategy, now is actually a great time to keep buying if you can.”
Baska says this deal is not for her 30-somethings, simply because she doesn’t get her money out. She also advises against looking at your 401K right now. She said if you’ve just retired and might have to sell, see if there’s a way to live off Social Security or other income to reduce the amount you take out of the market.
Another great tip is to set a budget and stick to it, as well as have an emergency fund.
“Your emergency fund should be a fully funded range of four months to even a year of your minimum expenses,” Baska said. “Your rent, your utilities, your cell phone bill, things that need to be paid,” Baska said.
Baska has a financial advice Instagram where she gives her followers help with money and more. Click on here to know more about her.