Rising Rates Usher in Era of Downsized Spending as Borrowing Gets More Expensive
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Interest rates are much higher than before, making borrowing more expensive for cars, homes, etc. This will lead to a "downsized America" where people buy smaller homes and cars.
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To prepare, start saving money consistently and build healthy financial habits like budgeting and tracking expenses.
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Delay major purchases like buying a home if possible and wait for rates to fall. Prioritize spending on essentials.
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Consider downsizing your lifestyle in areas like housing and transportation due to higher borrowing costs.
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Explore inflation-resistant assets like real estate, high-yield savings accounts, and investing in your education.