LINCOLN, Neb. (KOLN) – Amid the war in Ukraine, inflation is now at its highest level in 40 years. As prices continue to rise, financial experts at Stonebridge Insurance and Wealth Management give advice on how to manage inflation and keep money in your pocket.
The Labor Department released its February report, saying the consumer price index rose 7.9% over the past year, the biggest increase since January 1982.
Financial adviser to Stonebridge Insurance and Wealth Management, Eli Mardock said inflation should never catch people off guard. He said that when times are better and inflation is low, that’s when you should invest in the future. This type of investment will help prepare for the rise in inflation we are currently experiencing.
Mardock also said one of the best ways to manage inflation is to reduce debt. There are two strategies to achieve this.
- Snowball Method: Pay off smaller balances first and work your way up to larger debt.
- Avalanche method: Pay off high-interest debt first.
Mardock said it’s important to always have an emergency fund that can cover 3-6 months of expenses. It is also important to set short and long term financial goals.
“There are always unexpected things that happen and will happen,” Mardock said, “Having 3 to 6 months worth of expenses helps you have enough money to meet an unexpected expense where you don’t have to incur extra debt to cover these expenses and make your cycle of debt worse.
Right now, the Federal Reserve is raising interest rates, which should ease inflation rates.
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