Interest rates continue to rise as the Federal Reserve looks to combat inflation by slowing the economy. In both June and July the Federal Reserve raised the benchmark rates by 0.75% and hinted at more rate increases coming in the near future. What does this mean for you?
Rising interest rates can affect you in many ways. Rising rates typically hit the housing market pretty hard as it increases the cost of mortgages which inevitably lowers demand which should decrease prices and help ease supply chain issues. Housing is a massive part of the economy and slowing down housing demand should help ease inflation.
Rising rates also make saving accounts more attractive making it worth looking for better places to park your emergency savings and long-term cash needs. SoFi offers a 1.80% APY on their checking and savings account. Goldman Sachs offers 1.50% APY through Marcus.com and Discover offers 1.50% APY as well. They still won’t beat current inflation rates, but as rates increase they become more attractive for your cash needs. Note: I do not receive any affiliate income from these links. Please do your own research. I’m simply passing on one of the benefits of rising interest rates.
What’s Your Money Script?
A recent Motley Fool Money podcast included an interview with Brad Klontz. One major topic is the idea of money scripts. These are scripts we follow in regards to money which often have their origination from things we learned in our childhood. They can lead to behaviors around money that don’t really serve the purposes we set out to meet.
The 4 major “script” categories are: Money Avoidance, Money Worship, Money Status, and Money Vigilance. Want to know what script you are most apt to follow? Take Brad’s test here.