From rising interest rates to bank failures, you may see the news but how does it impact you? I’m looking into recession-proofing your finances and one way you start right now.
How to start saving the money you have
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The first thing you should do to protect the money you have is to pay off any credit card debt. Higher interest rates mean the money you owe will add up a lot faster.
Danny Ratliff with RIA Advisors joined me for our latest Ask Amy episode. He explains, instead of leaving your savings parked in the bank invest them to make more money. You can do this with high-yield money market accounts, CDs, or even something called I-bonds. I-bonds are safe investments issued by the u-s treasury to protect your money. We told you about I bonds last year but the interest rate is about to change again so it’s worth checking it out. Right now they are paying 6.89 % interest but you have to put your money in by April 27th to get that rate.
“I wouldn’t necessarily put emergency funds in something like this. This could be a good place to store funds for a couple of years. They pay on six months increment but they pay it on annualized returns every six months they change it. They’ll change that 6.89 percent after April 27th. So you have some time that you can actually lock in that 6.89 for the next six months. Once they change the rate, it will go down to whatever that rate is for the following six months,” explains Ratliff.
You can buy up to $10,000 worth of I-bonds every year. I-bonds are exempt from state and local income taxes. You won’t ever lose your principal. You have to own the bond for at least five years to receive all of the interest that is due.
Ratliff also suggested using an FDIC calculator to find out if the money you have in your bank is protected.
You can watch (or listen to) the full Ask Amy Episode with more financial advice here.
Will the city pay for damage done to vehicles from the damaged road?
How many times have you been driving in Houston and hit a pothole or other road damage? People who live on the city’s south side say despite repeated complaints to Houston Public Works about a huge hole in a major roadway, the city delayed repairs, causing thousands of dollars in damage to vehicles.
At least one driver is hoping the city will pay for car damage repairs. Attorneys tell KPRC 2 Investigates that even though the city denies almost all claims submitted for property damage, if a citizen can prove the city knew about the hazardous road condition and they failed to fix it promptly, they may be able to get their money back. If filing a claim doesn’t work, you can sue.
Check out the mess one neighborhood is dealing with and let us know what you think!