KANSAS CITY, Mo. — With a struggling economy, everyone is trying to stay afloat. Financial barriers, like the fact that it's now more expensive to take on a loan, can weigh some down.
This week, the Federal Reserve raised its key interest rate by three-quarters of a point. It's the biggest increase since 1994, and likely just one of several rate hikes on the way.
The rate hike will find its way to virtually all consumer loans, including credit cards, mortgages, home equity loans, car loans and student loans.
Economists are concerned about a possible recession next year. They say 401Ks are really taking a hit right now, and when the stock market falls, those retirement funds suffer.
One local financial educator said it's all about a long term goal.
"I strongly believe, preach, long-term investing," Financial Educator Mallory Baska said. "You do not lose money in the stock market unless you sell. If you have a long-term strategy, now is actually a great time to continue buying if you are able to."
Baska says this market doesn't concern her for people in their 30s, simply because she's not pulling out her money. She also advises not look at your 401K right now. She said if you just retired and might have to sell, see if there is any way you can live off social security or any other income to reduce the amount you are pulling out of the market.
Another great tip is getting a budget and sticking with it, as well as have an emergency fund.
"Your emergency fund should be a fully funded range from four months to even a year of your bare bones expenses," Baska said. "Your rent, your utilities, your cellphone bill, things that have to be paid," Baska said.
Baska has a financial advice Instagram where she gives her followers help on money and more. Click here to learn more about her.
