The unemployment rate has risen since the Federal Reserve voted last week to keep interest rates steady, sending markets into a slump.
Last week’s jobs report showed that unemployment rose from 4. 1% in June to 4. 3% in July, the point since October 2021. Knowledge shows that the economy is slowing more than expected.
With the latest stock market news about falling investments, announcements of a possible recession, emerging unemployment, and higher-than-desired inflation, you may be worrying about what’s coming next. Experts believe there is no reason to panic, but there are tactics. be proactive. From building an emergency fund to paying off high-interest debt, here are four steps experts suggest taking now.
Aaron Sherman, qualified money planner and president of Odyssey Group Wealth Advisors, says the latest jobs report indicates interest rates are expected to fall. He also warns against jumping to too many conclusions too soon. Market activity, which depends on investor expectations, is volatile.
“We’re looking at the emotional aspect of the market right now,” Sherman said. “The psychology of the market goes from ‘everything is fine’ to ‘the sky is falling’, without much justification. Yes, there are signs that the economy is slowing down, but it is not collapsing.
Last week’s jobs report showed a slight increase in the unemployment rate and an increase in temporary layoffs, raising fears of a recession. “The report is weak overall, unlike previous months,” said Robert Fry, lead economist at Robert Fry Economics.
The economy is slowing, but Sherman doesn’t think he’s noticed sufficiently consistent symptoms that we’re entering a recession.
Whether we’re officially in a recession or not, American families have been hit hard by inflation, high borrowing costs, and a volatile economy.
With task loss on the rise, it is vital to plan ahead and focus on what you can control. Even if the Federal Reserve cuts rates next month, the economy is running up and down and situations are never replaced overnight. Taking steps to protect your finances is what is within your immediate control. Here’s what experts say you should do.
Bola Sokunbi, founder of Clever Girl Finance, recommends creating an emergency fund. An emergency fund gives you a cushion to fall back on if you miss your assignment or a surprise bill pops up.
If you’re already struggling to make ends meet, building an emergency fund can be slow and difficult. Start by reviewing your budget to see if there are any expenses you can cut or reduce, even if they are only temporary. Then, by transferring the money you lose, you deposit it into a high-yield savings account.
“Setting up automatic movements in your savings account can help you save constantly. Even small, normal tanks load up over time,” Sokunbi said. For example, if you can lose $50 per month by canceling a streaming subscription and then moving a If you add $100 per biweekly paycheck to a month of savings account, you can save more than $3,000 in a year.
Compound interest on high-yield savings accounts or CDs can make your savings grow even more. A longer-term CD can help you earn a counterfeit annual percentage return, which will give you higher returns and make spending less tempting.
If you’re worried about wasting your work, Shang Saavedra, founder of Save My Cents, suggests keeping your resume and network up to date. Add your latest job, skills, and day-to-day jobs and come with all the referrals and awards. and certifications. This way, your resume will be in good condition in case you want to start working.
“I network by catching up with my peers and friends in my industry,” Saavedra said. You can also take a look around to expand your network and make new connections to stand out when the time comes. You can also start looking at professional qualifications to see if there are any skills that might inform you that you are better suited for a position.
If you’re having trouble paying off high-interest debt, like credit card debt, review board member and private finance expert Jason Steele recommends contacting your credit card issuer to discuss your options. They may offer you a payment plan, temporarily reduce your interest rate, or give you a credit card forbearance. He can also explore 0% balance move offers or a debt consolidation loan to give him a break from interest charges.
Gerri Detweiler, a credit card expert, said you shouldn’t wait for interest rate discounts to get relief if you’re struggling to make your credit card payments. Detweiler also recommends speaking with a professional, such as a reputable debt relief expert.
Introducing the National Credit Counseling Foundation and the Financial Counseling Association of United States. The Department of Justice’s website also provides a list of approved credit counseling in each state.
When stock prices are lower, it may seem like a good time to make changes to your portfolio. This can be a slippery slope for investments you’ve already made, and experts say it’s more productive to focus on long-term diversification than knee-jerk reactions.
“When inventory costs go down, you’re poorer, which is bad,” Fry said. He noted that if the positive and negative effects are balanced, your asset allocation is correct. Take the time to review your tolerance for threats and review your investment passes.
CNET’s editors independently decide on any and all products and services we cover. While we can’t review each and every corporate or monetary offering available, we try to offer comprehensive and rigorous comparisons to highlight the most productive ones. For many of those products and services, we earn a commission. The refund we receive may affect the appearance of products and links on our site.
Writers and editors produce editorial content with the purpose of providing accurate and unbiased information. A separate team is guilty of creating paid links and ads, creating a firewall between our associate partners and our editorial team. Our editorial team does not receive any direct remuneration from advertisers. .
CNET Money is an ad-supported publisher and comparison service. We receive compensation for the placement of sponsored products and services, or when you click on certain links posted on our site. Therefore, this refund could affect where and in what order affiliate links appear in ad units. While we try to offer a wide variety of products and services, CNET Money does not include data on any and all money or credit products or services.