If you have been following the financial news, you have probably heard about the possibility of the economy experiencing a recession. Whether this occurs sooner or later and whether the recession is short-term or long-term, now is a good time for a reminder about the ways Nutmeg can help you stay financially prepared.
One of the most important places to start is by taking a close look at how you spend your money and how well you save. No matter what, it is important to save, have a budget and keep an emergency fund. The most significant thing you can start doing today is assessing your monthly expenses to see what is really necessary in your day-to-day life. I have seen many friends and family members subscribe to services that end up going unused, like cable television or a gym membership. Removing any of these extra costs can make a big difference and help you build your savings, which will help you stay secure in the event of a recession.
As I’m sure you know, Nutmeg has plenty of savings options you can take advantage of to stay organized and earn the best interest possible. Our Certificates and Money Market accounts are great options for yielding high rates of return. Certificates are useful if you are looking to lock in a rate for a specific amount of time and Money Market accounts are great for ensuring the funds are available when you need them. If you have investments or retirement accounts, it’s always a good time to review them and make sure you have the right level of risk. Our financial advisors are here to help should you need guidance or just want to get a financial checkup.
We also have a special Save for a Purpose account that can be used for anything you need. Members find this account useful to help stay organized because they can open more than one for different needs. Whether for holidays, birthdays, wedding planning, emergency funds or any other specific need, keeping these accounts separate is a great way to stay organized. The more organized you are for planned expenses, the better off you will be when unexpected expenses occur.
While keeping your savings organized is essential to preparing for a rough patch, it is also very important to reduce any debt you may have. Having excessive debt during a recession can become a burden if not managed properly. Reducing credit card debt has been a common starting point for many people. Nutmeg frequently offers credit card debt consolidation specials, including the fall 0% balance transfer promotion happening right now. With this option, you can bring over all your credit card debt with no interest for six months. Plus, our card comes with a fixed rate and no annual fees!
Refinancing other loans like car loans and home loans is also a great way to reduce monthly expenses. Nutmeg’s rates and terms are extremely competitive and can help save you money. If you have a high rate mortgage on your home, now is a great time to refinance as mortgage rates have dropped in recent months. Reducing debt and freeing up extra funds is always a good idea, whether the next recession happens tomorrow or in a few years.
Most importantly, stay focused on the future during a recession. You can take comfort in knowing that the economy typically rebounds within a year or so. I hope this information has been helpful to you and that you will consider taking advantage of the services Nutmeg has to offer. Nutmeg has served the community for over 80 years through many economic ups and downs, and we will be here to serve you and your family for many years to come.
President & CEO