After several ominous years, there is still talk that a recession might be on the way by the end of the year. While the Fed may say otherwise, there are economists who definitely believe we should brace ourselves for some level of increased financial volatility. But whether we end up in a recession or not, what we are dealing with right now is inflation, high consumer goods, high gas prices, and high interest rates.
This is definitely not the time to play “business as usual” with your finances. It’s crucial to pay attention to your spending, pay down debt, and stick to a scaled-down budget. This will not only help you deal with today’s economic headwinds but also prepare you for any potential issues down the road.
With a goal of keeping more money in your pocket, here are four moves you should definitely not be making with your money right now:
1. Buying a house
During an economic downturn, houses may get cheaper due to falling demand, and with high mortgage rates, the prices may fall low enough to entice buyers and seemingly make up for the interest rates. However, those high interest rates may not only make buying a house really expensive now but could cost you more money in the long run. If you can hold off on investing in a house right now, it may be better to do so. Don’t risk increasing your housing costs — and remember, there is nothing wrong with renting until it truly makes financial sense to buy.
2. Any item that needs financing
Again, we are living amid a high-interest-rate environment, which, in turn, has affected many financial tools, including credit cards and other financing vehicles. Consequently, this phase could impact buying that expensive dishwasher or refrigerator, should you need to finance it. So deeply consider the urgency of home renovations or upgrades, including furniture, laptops and TVs. If these are purchases you may want to make but currently cannot without financing, put them off unless…
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