It’s that time of year; fall is in the air. The world is a mess, though, with war, inflation, and energy concerns.
We would recommend continuing your investment plans during market drops. We are at a market low now, which means that many stocks are “on sale.” We’re sure you’re sick of hearing this! What are the alternatives? Spend like YOLO? iBonds? Hoard cash, which is subject to double-digit inflation? Have you fully funded your emergency fund?
Ideas from our How to Money friends:
Spend those gift cards! We may be in for another wave of store closings by the end of the holidays. Spend those cards for date night or a treat.
Utilities: many parts of the country are seeing record fuel costs. Now is the time to save some money on heating/cooling as we enter a shoulder season between hot summer and the coldest winter nights. In many cases, consumers use less energy (due to improved appliance efficiency, better insulation, and smart thermostats) but the energy bill increases anyway due to fuel costs! We don’t recommend buying new appliances/cars/etc. just for energy efficiency (let the old ones finish their service life first), but look proactively for ways to cut energy usage in your life.
Housing: We get lots of questions about housing. The market has cooled since the spring. Mortgage rates have risen significantly. Homes are sitting longer and selling for less than the asking price in many markets. The advice we have is to see how much you can afford, regardless of the market sentiment. Even if prices dropped 5% from their highs, that doesn’t mean you can afford their payments. Here is a site where you can enter your target market and get detailed statistics: https://www.realtor.com/research/
Goals: Work on 2022 goals!
