How To Manage Finances Amid Inflation, Rising Interest Rates And Volatile Market
MINNEAPOLIS (WCCO) -- Managing your own money might feel frustrating right now. Stocks on Monday made a late afternoon rebound after the S&P 500 and Nasdaq hit new lows for 2022. The Dow dropped nearly 2,000 points over just the last month.
Consumer prices were up 8.5% in March from a year ago, the highest since 1981. To combat inflation, the federal reserve raised interest rates by 0.25% in March and are expected to raise them again on Wednesday, though there are growing doubts among industry experts.
"Along with everything going up, so will credit card interest rates and so will these other interest rates are gonna go up, student loan rates are going up," said financial advisor Mike Kojonen. "Tackle your debt, get a hold of that. You don't just contribute and stop, you know, focusing on debt. You do everything."
Kojonen said to tackle small debt first. As for retirement accounts, he said the sooner you plan the better. Despite the rocky markets, he said to continue contributing to the account(s) even though it may appear you're losing money.
"Even in a down market, that's gonna average the cost of those investments lower so when the market does go up, you're going to get your money back faster and then some," Kojonen said.
