Financial Expert Gives Tips for Managing Financial Anxiety – WISH-TV | Indianapolis News | Indiana Weather forecast
INDIANAPOLIS (WISH) — Inflation rates are rising, hitting their highest level in more than four decades and leaving government officials and Americans worried about a possible recession.
Andrew Butters, an assistant professor in the department of commerce and economics at the IU Kelley School of Business, told News 8 that steps are being taken to avoid any economic hardships that may arise, it is essential that the Hoosiers have a financial plan. in place in the event of a recession. struck.
“Interest rates are rising and will continue to rise, and that’s going to drive up the cost of any borrowing you take,” Butters said, “whether it’s making a decision about buying a house or car.
“When interest rates are really low, the cost of borrowing is low. Now it will be a larger amount of your monthly salary or disposable income. So now is a really good time to make sure you have a proper understanding of exactly what you have coming in and what you’re taking out and make sure things are in place long term to maintain household stability .
Butters also says financial anxiety is real. But instead of worrying about what might happen, people need to be action-oriented. He suggests people create a rainy day fund, cut unnecessary expenses and make sure their savings are building up.
He goes on to say that even though the future is unclear, he wants people to know that the economy has its ups and downs. Periods of economic contraction and expansion are normal. If a recession hits, the country will go to the other side.