GREENSBORO, N.C. (WGHP) — Many families in the Piedmont Triad are making changes to their lifestyles.
The federal interest rate hike is causing people to have more discussions about their finances to keep up with rising rates and inflation.
Andi and Jeff Goree live in Greensboro and meet with a financial advisor multiple times throughout the year. She told them to spend money where they see value. The Gorees are making small spending changes day-to-day to combat inflation.
“You can often end up in an ad hoc Target run once a day, and these days our biggest goal is to stay off of Amazon and stay away from Target,” Jeff said.
We all add to our cart and check out with the click of a button or run in the store just to browse and come out with things we don’t need. Andi and Jeff are cutting out those habits to make a big difference in the long run.
“There’s a lot of saying ‘no’ and ‘do I need this?’ as you look at that stuff,” Jeff said.
That’s the advice the Gorees got from their financial advisor to ease the pain of the potential recession. On Wednesday, the Federal Reserve increased interest rates by 0.75 percent. It’s the largest jump in nearly three decades.
It made the move to cool inflation. The goal is to drive down demand, and, in turn, drive down prices.
“We are trying really hard not to make big purchases that we can avoid,” Andi said.
She’s avoiding unnecessary purchases as the necessary ones get more expensive. The Gorees spend $100 to $200 more to feed their family of four at the grocery store now.
“I’ve gotten a little more creative,” Andi said. “I don’t just shop at our go-to anymore. I will go around town a little bit.”
The family normally takes big trips throughout the summer. Those plans are closer to home this year.
“We’ll do less this summer,” she said. “It’ll be a little bit more simple.”
They’re adjusting and saving little by little, knowing a big purchase is inevitable.
“My minivan that’s like nine years old makes some noise, and I was like…’please don’t do anything now,'” Andi said.
Her van has more than 100,000 miles on it. The interest rate hike is shaping how they’ll decide whether to get a new car.
“What kind of a loan we would look at, whether we look at a loan, whether we want to hold onto cash, whether we want to let cash go,” Jeff said.
The couple worries about how this will affect their retirement and future plans. For now, they’re keeping expenses reasonable and trusting their advisor to lead them in the right direction.
“Everyone has concerns and worries, and everything seems more expensive right now,” Andi said. “We don’t know how long it will last.”
The Federal Reserve will continue to raise interest rates as needed throughout the year if inflation doesn’t subside. Its next meeting is in July.