Stretch Your Dollar: 3 money savers to keep in mind before another rate increase hits

Stretch Your Dollar

For the third time this year, the federal reserve is leaving interest rates unchanged saying it will wait and see where the economy is headed before announcing another rate increase.

When it comes to your finances, experts say now is not the time to get complacent. We are stretching your dollar with three money moves to take advantage of the fed’s pause.

Jerome Powell, Federal Reserve Chairman says, “We think our policy stance is appropriate at the moment and we don’t see a strong case for moving it in either direction.”

Interest rates are on hold, but you’re money goals shouldn’t be. So, what should you do to take advantage of during this quiet period?

Bankrate.com suggests following these three steps.

1)  Pay down your debt. Each time federal decides to increase borrowing costs, the interest rate payment on your credit card goes up.

Experts suggest focusing on paying down your debt before rates get any higher. They also say it may be a good time to refinance a mortgage since rates have dropped in recent months.

2) Build up emergency savings. Now is the perfect time to put away money for emergencies and for retirement.

The key is to go with an account that gives you quick access to funds.

3) Stay the course with your retirement savings. As the federal figures out how to proceed, markets might get a little choppy, but experts say turbulence is normal.

So, ignore the hype and just keep saving aggressively.

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