FRESNO, Calif. (KGPE) – Ford Financial Group Managing Partner Brian Ullmann said right now, borrowing costs across the board are going to be impacted.
Ullmann said, home loans, car loans, and credit cards will be impacted, and the smart move in response is to get back to basics.
“Make sure you have an emergency saving set aside, try and pay down your debt,” Ullmann said. “I think pretty clearly what’s going to happen is: We’re going to have a recession next year because of these higher interest rates, in part, so it’s a good idea to batten down the hatches.”
Ullmann emphasized—don’t stop contributing to your 401K, especially if your company matches your contribution.
He also recommended not to make investments if they go beyond household means. Basic contributions are safe, but any risky stock investments may not be smart, according to Ullmann.
“The kind of day trading that was popular during COVID, which was a glorified version of gambling, is probably not the answer,” Ullmann said. “The future right now as far as markets are concerned is uncertain—really in the short term.”
Bottom line–Ullmann urged it’s time to cut the subscriptions and unnecessary spending and keep cash flow to the necessities that provide a more secure future in the long term.