GREENSBORO, N.C. — The U.S. Federal Reserve suggested there could be three interest-rate hikes in 2022. On top of supply chain issues and rising inflation, you're already feeling the impact and money experts say it could last for a while.
While we all hoped the inflation woes in 2021 would end, money expert Ja'Net Adams says the higher prices will continue well after Christmas and at least halfway through 2022.
"Prices on everyday items such as groceries have been higher this year causing people to make hard choices about their necessities," Adams said. "The inflation that we have experienced this year is not going away in the next few months and the federal reserve is planning to raise interest rates."
Adams shared three ways to financially navigate the next year.
1. Control what you can:
"Yes, inflation is here and could stick around for a few more months, but that does not mean you have to be crippled by it," Adams said.
Adams, who paid off $50,000 of debt in two years, said you can only control what you can.
"Take gas for example, which is higher than normal in most places. You can search out the least expensive gas and fill up there or get some rest at home over the holidays and save on gas by not driving every day.
The key is to be unconventional and to get away from your ordinary routine to save money," said Adams, who wrote the book, The Money Attractor.
2. Look at the bright side:
"When the Federal Reserve decided to raise rates in 2022 many people started thinking how the decision will affect my money. Take a person looking to buy a home. They can look at the news about the raised interest rate in a negative way thinking that will increase the amount of money paid over the life of the loan. Or they can look at the interest rate rise as a way to slow the housing market down and bring the prices down to normal so that it saves them money. You have to step back and look at your financial goals from all sides," said Adams.
3. Be on the outside looking in:
"When you can exist outside of this economy that is the ultimate win. When your finances are not negatively affected by what goes on in this economy you have reached financial freedom," said Adams.
She suggested you work to create your economy by building an emergency fund with a year's worth of expenses and removing the debt from your life.
"Debt is a threat and the less debt you have the more you can avoid the downsides of the economy. In 2008, I felt every negative side effect of that economy. I took steps to create my economy and because I took those steps my finances were not affected by the last recession."
Right now, the economy is a rollercoaster, but you can take steps to make the ride a little easier.
You can get in touch with Ja'Net Adams here.