SAN DIEGO — Concerns are rising almost as fast as inflation itself, with many people taking notice of the extra money they’re paying for every day needs from the gas station to the grocery store.
While we’re used to seeing about a 1.5 to 2.5% increase in cost of living, experts say we’re currently experiencing the fastest growth of inflation in the last 12 years.
“We’ve seen somewhere in that 3 to 4% range just in this couple month period of time where over time, if we stay at a 3 or 4% inflation, we’re really going to start feel it,” said Brett Gottlieb, financial advisor and president of Comprehensive Advisor.
Americans have generally become accustomed to relatively low interest rates, low inflation, and overall consistent pricing, but that’s all skyrocketing as of late with the cost of everything from gas to groceries going up.
“Make sure your emergency savings is set aside and you’re prepared for three to six months so that you don’t have to make a rash purchase,” Gottlieb told FOX 5.
Gottlieb adds not all rising costs are tied to inflation — some things are a result of the economy trying to recover from the pandemic.
“(It’s) a job market where there’s not as many people working. So it’s more difficult to go out and cut down a tree and process it through the plant and create the lumber that’s used to build a house, so now you have a shortage of houses and people that want those houses,” he explained. “It is a trickle effect.”
Aside from that emergency fund, Gottlieb gave other tips for staying the course financially, like taking a break from charging up your credit card, re-focusing on long-term financial goals like paying off a car or home, and considering a financial advisor.
It’s no surprise the demand for those financial services is also on the rise these days.
“People think that retirement is when they need a financial advisor in many cases, or big life-changing events, but that’s why we say, ‘The sooner you start the better.’ But there is no question when there is uncertainty like inflation, the stock market has been pretty volatile, those are the types of things that create the demand,” Gottlieb told FOX 5.