federal reserve

Habits Change Amid Price Increases, Expected Interest Rate Hike

Groceries in Connecticut
NBC Connecticut

Prices for gas, groceries and just about everything are going up and it’s changed how we’re living.

"What I've noticed is progressively throughout the year, this year in general, I’ve been becoming more and more like conservative with my spending. So, like I'm not going to get nice things at the grocery store," West Hartford resident Paul Delubac said.

It isn’t just the food in the shopping cart that’s caused many to change how they plan and prepare their future.

"I have to constantly budget and re-budget my expenses," Ray Ohakam, of Hartford, said.

"It’s kind of put a hold and prevented me from going to purchase a home at this particular point,” he said. “Right now with the interest rates on the rise and currently increased, it’s not the best time."

While inflation has continued to rise at the fastest rate in decades, financial advisor Heath Grossman, of Johnson Brunetti, said people should plan for this type of financial climate.

"Inflation should always be a part of someone’s financial reality and their financial plan," Grossman said.  

He offered tips for those looking to balance their checkbook along this bumpy road.

“It’s always a good idea to have a good budget and look at your expenses as a whole and have a good sense of what’s coming into the household in terms of income and where is it going as it goes out. What are you spending money on?," Grossman said.

“You want to almost separate your expenses into two piles – one of those being a critical expense and one of those being noncritical expenses,” he said. “If you’re at a point where your budget’s a little bit tight you maybe have to start to look at those non-critical expense and cut where you possibly can."

The Federal Reserve is set to meet this week to discuss interest rate increases.

CNBC reports that the Federal Reserve could raise interest with a 75 basis point increase, a signal of a more aggressive move than normal to get the economy back on track.

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