Weathering the Storm: Americans Continue Navigating Inflation in 2022
Welcome to 2022 everyone! I hope you enjoyed your holiday and new year season with those most important to you. Although a major financial storm from 2021 is still hanging around at the beginning of this year – inflation – I hope you are ready to hit the ground running this month and weather the storm together.
Inflation is going to be a hot topic to discuss this year with some economists estimating it won’t taper and be under control until the middle of this year. This CNBC article isn’t welcome news for the most part (a quarter of Americans expect their financial situation to be worse in 2022 due to inflation), but for those of you paying more for basic necessities and living paycheck to paycheck, there are some measures you can take to alleviate any stress you may be facing!
Check out some things I think you should consider below to make the most of this year while easing the negative impacts on your financial situation:
Track Your Spending and Scale Back Expenses: Take time to look at your spending habits from last year and find ways to scale back your expenses. During inflationary times some hard sacrifices need to be made on (even if that includes eating out less and canceling one of the many streaming services you may have).
Manage Your Debt: Wise debt management is a key component of healthy and effective financial planning. Today, most people carry some amount of debt to finance a degree or buy a home or car. Other debts may be incurred out of necessity or as part of an investment plan. Whatever your reasons for taking on debt, you should understand the different types of debt and their risks. This knowledge will help you manage debt wisely as part of your overall financial plan.
Think Long-Term: Thinking long-term about your financial assets will eventually lead to financial success. If you can save and invest more of your income – do it! Personal finance is always intertwined with having the right mindset. In the short-term, your money habits can be impulsive and when you consider long-term outcomes, you make smarter, better financial decisions.
Determine Your Portfolio Assets for This Year: What changes do you need to make with your financial portfolio assets? If you notice your assets are in just a few sections of the market, contact a financial advisor to help you diversify! This will help keep your financial risk lower with a sounds financial strategy.
All the suggestions above can help protect you from the prolonged inflation environment we’re in. Please get in contact with me if you would like to work with myself or one of our very talented financial advisors!
~ Presented by Dan LaNasa