AYDEN, NC (WITN) — With all the unease surrounding the economy and the stock market, many people are worried about what’s yet to come. Today WITN spoke with a financial advisor who explained how we can prepare for all scenarios.
“It’s a bit painful; it’s almost like ripping off a bandage right now,” said George Pate, financial adviser at The Journeys Group in Ayden. Although the Federal Reserve is working to rein in inflation by raising interest rates, Pate said it could be some time before we see the effects.
“Normally, when you see interest rates go up, it’s a quarter of a point. We saw a half point on Wednesday; we’re going to see a half point next month. And I wouldn’t be surprised to see another increase in September. And what that does is try to put the brakes on hard, try to cool the economy,” he explained.
The White House says we will eventually feel the silver lining in our wallets. “We are doing everything we can to help ease inflationary pressures on households. It involves our work in the ports, our efforts to try to reduce some of the costs for family budgets, some of the biggest costs – education costs, prescription drugs, health care premiums, medical bills public services,” said Jared Bernstein, a member of President Biden’s Council of Economic Advisers.
Regardless of interest rates or inflation, Pate says sticking to a financial plan will get you through this. While it may seem impossible right now, he says every little bit counts. “You start small. You say, ‘Okay, I’ll save $25, $50 a month. People don’t realize the impact it has,” he said.
Pate advises everyone not to pay too much attention to the stock market as it is dictated by people’s perception. Instead, develop an investment and savings plan and stick to it.
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