Tips to survive rising prices and a bear market on Wall Street
SAN FRANCISCO (KPIX) -- Rising prices on everything from gas to food and stock market woes have many families wondering what to do during times like these.
These are financially challenging times with so many changes happening so quickly.
Experts believe the Federal Reserve will increase the interest-rate by three-quarters of a percentage point by sometime Wednesday. That will have a major impact on the economy, as financial decisions loom for families everywhere.
Whether there's a family to feed, or you're living on your own, hard financial decisions have to be made.
Steve and Isabel are using the cash to invest in solar panels.
"Our big investments have been getting rid of a car," said Isabel. "I don't know if that saves money at this point but it probably will a few years from now."
As stocks tumble deeper into bear market territory, food costs rise, and gas prices seemingly climb higher by the hour, many are wondering if there are concrete financial moves to make now.
For families simply trying to keep up with monthly bills, financial advisors emphasize the need to clearly define mandatory versus variable expenses.
"We don't go out to dinner for a lot of reasons these days. One reason is because the food isn't that good anymore because they have to make adjustments," said Alan Graham.
Cutting back on dining at restaurants and gym memberships are examples of variable expenses.
Making smart adjustments, like cutting back on water usage to lower a bill in the hundreds of dollars too, can make a difference.
Noceti is a Family Wealth Advisor for The Integra Group based in Walnut Creek, who says now is the best time to maximize your 401k contributions since the market is doing poorly right now and it's a chance to buy low.
"It's all about losing less so when the market comes back you are in a position to gain more," said George Noceti.
The younger you are, you can afford to take more risk in volatile stocks.
The older you are, your portfolio has to be more conservative with guaranteed fixed income.
"Switching some of your equity positions to fixed income isn't going to give you a lot of return but it's going to give you a little balance and make your portfolio a little safer," said Noceti.
Depending on how diversified your portfolio and investments are, the answer could be to stay put.
"You're not investing for the next six months. You're investing for decades in the future. Sometimes the very best advice when that little devil on your shoulder says 'do something,' I say 'don't do something just sit there,'" said CBS News Business Analyst Jill Schlesinger.
If that increase in the interest rate happens, that three-quarters of a percentage point would be the largest in almost three decades.
