As we emerge from the COVID-19 pandemic, a time when financial resources for so many have been stretched to the limit, the rise in prices on everything we need is remarkable.
A Philadelphia-area expert reveals how you can battle against the current economic forces that could deplete what is left of your nest egg.
Morgan Stanley Executive Director and Financial Advisor Bob Manning said it is true that this generation has expenses that our parents didn't.
"A lot of those challenges are real and they are a big issue," Manning explained.
"Some of them can be controlled. Yes, we do have internet bills and cable bills, but have we looked to see if we are paying the least to give us that service?"
Manning said to compare prices and switch providers if necessary. Every little bit helps, because food and gas prices are rising quickly due to inflation sparked by pandemic related supply issues.
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"There is a lot of work to be done in order to get control over your finances. Don't react. Plan," Manning suggested.
"If you plan, then you can make decisions. Don't have decisions made for you."
Then, the money you can incrementally save, put some toward your nest egg, and set aside some for investment.
"Once you put it into your portfolio, think long term. Be very diversified. You put it in large caps, mid caps, small caps, internationals, bonds, because we know they all work, (but) they just don't all work at the same time."
Since we don't know when that time will be, saving is crucial.
To figure out how much you need to make your life work, Manning suggested you sit down and take a look at your bank statements and determine how much money went out the door over the last six months.
Add it up and divide it by six.
That will give you the number you need so you can adjust your discretionary spending and start saving.
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