AYDEN, N.C. (WITN) – With all of the unease regarding the economy and the stock market, many people are nervous about what’s still to come. Today WITN talked to a financial advisor who shared how we can prepare for all scenarios.
“It’s a little bit painful; it’s almost like ripping off a band-aid right now,” explained George Pate, a financial advisor with The Journeys Group in Ayden. Although the Federal Reserve is working to curb inflation by raising interest rates, Pate said it could be some time before we see the effects.
“Ordinarily when we see interest rates go up, it’s a quarter of a point. We saw a half a point on Wednesday; we’re going to see half a point next month. And it wouldn’t surprise me to see another increase in September. And what that’s doing is trying to be slamming on the brakes, trying to cool the economy off,” he explained.
The White House says we’ll eventually feel the positive side in our pocketbooks. “We’re doing everything we can to help ease inflationary pressures on households. That involves our work at the ports, our efforts to try to lower some of the costs to family budgets, some of the most important costs – education costs, prescription drugs, healthcare premiums, utility bills,” said Jared Bernstein, a member of the Council of Economic Advisors for President Biden.
Regardless of interest rates or inflation, Pate says sticking to a financial plan will get you through. While that may sound impossible right now, he says every little bit counts. “You start small. You say, ‘Okay I’m gonna save $25, $50 a month. People don’t realize what an impact that has,” he said.
Pate advises everyone to not pay too much attention to the stock market because it’s driven by people’s perception. Instead, make a plan for investing and saving and stick to it.
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