The Weekly Wealth of Knowledge is your download of this week's most important topics related to financial planning, the markets, and our community. As we enter August, we welcome in "money" month at MONECO Advisors, where we will be highlighting everything related to it, including savings strategies, budgeting, cash flow, debt management and more!
In this issue:
• A Decision Not Made Is Still A Decision (3 min read)
• FED Hikes Rates Again (2 min read)
• Why An Emergency Fund Matters (3 min read)
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A Decision Not Made Is Still A Decision
With all of the challenges the markets have faced over the past 6 months, it is natural to get nervous. However, having a long term financial plan in place, can help you weather market downturns by giving perspective. Often when markets disrupt, long term plans are still on track. Continuing to make decisions, however difficult, must remain a part of your plan, avoidance is not an option. As always, if you have any questions, do not hesitate to reach out.
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FED Hikes Rates Again
The Federal Reserve announced last week that it would again raise its benchmark interest rate by .75% to help cool the economy off and the red hot inflation that we are experiencing. The fed funds rate most directly impacts what banks charge each other for short-term loans, but has farther reaching impacts across many financial rates. On an upbeat note, Chairman Powell stated that they will eventually have to slow future hikes to assess how previous ones impacted the underlying economy.
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Why An Emergency Fund Matters
As we kick off "money" month at MONECO, we start with a very important aspect of one's financial plan, having an Emergency Fund. Although there is debate about how much you should have in it, the general rule of thumb is a liquid position to cover expenses over a 3-6 month time frame, in the event of an unforeseen life event. If we can answer any questions about this, how to establish it and the benefits of doing so, give us a call!
