Lincoln financial professional gives tips on managing inflation - KOLN

LINCOLN, Neb. (KOLN) - Amid the war in Ukraine, inflation is now at a 40 year high. As prices continue to rise, financial experts at Stonebridge Insurance and Wealth Management are giving tips on how to manage inflation and keep money in your pocket.

The Labor Department released its February report, indicating that the consumer-price index rose 7.9 percent over the past year, the highest increase since January 1982.

Financial advisor for Stonebridge Insurance and Wealth Management, Eli Mardock said inflation should never catch people off guard. He said when times are better and inflation is low is the time you should be investing in the future. This type of investment will help prepare for higher inflation that we are seeing now.

Mardock also said one of the best ways to manage inflation is by bringing down debt. There are two strategies to do this.

• Snowball Method: Paying off smallest balances first and work your way up to larger debt.
• Avalanche Method: Paying off the high-interest debt first.

Mardock said it’s important to always have an emergency fund that can cover 3-6 months of expenses. It’s also important to set financial goals in the short-term and the long-term.

“There are always unexpected things that come up and will come up,” Mardock said, “Having 3-6 months of expenses helps you have enough money to face an unexpected expense where you don’t have to take out additional debt to cover those expenses and make your cycle of debt worse.”

At this point in time, The Federal Reserve is increasing interest rates, which should bring relief in inflation rates.

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