RALEIGH, N.C. (WNCN) — It seems the cost of just about everything is going up these days while most paychecks seem to stay the same.
“Honestly, many people are really scared,” said Carol Hunter, a financial expert.
Hunter is known as The Money Mender and says some consumers who might have extra money are afraid to spend — while the ones who don’t have any money to spare are nervous.
“The Fed has raised the interest rate eleven times so that’s a lot of raising,” she said.
Statistics show Americans were saving 33.8 percent on average during the COVID-19 lockdown.
According to the U.S. Federal Reserve’s most recent Survey of Consumer Finances report, the personal savings rate has dropped to 3.4 percent. In addition, only 4 in 10 Americans say they could cover a $1,000 emergency with funds in a savings account.
“The prices are soaring on everything from groceries to gas to purchasing a home or buying a car,” said Hunter, who lives in Tennessee.
She recommends many people start setting limits.
“You need to start checking your subscriptions. Today, we have subscriptions for everything from TV, food and memberships,” she said.
She says people should look at the ones that are not a priority and cut them along with cutting unnecessary spending. Plus, she recommends watching utility bills by adjusting heating and cooling settings.
Hunter also says to check out high-yield savings accounts.
“I would highly suggest you consider moving money over into a high-yield savings account. You will be able to take advantage of these rates that are averaging 4 to 5 percent,” she said.
Hunter will be hosting a FREE financial literacy course later this month. You can sign up here.
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