Welcome to Banking On It!

Welcome to?Banking On It, my new monthly LinkedIn newsletter! This will be a space where I share my thoughts on finance-related issues and address questions I'm getting from LinkedIn connections. My aim with?Banking On It?is to make you feel more informed and confident about your own finances. Be sure to subscribe at the top right of this page so you never miss an update!

I read a story recently that has implications for the economy. Jeff Bezos, bookseller of some renown, is in the process of remodeling his home in California (fun fact: he is paying $600,000 a month to rent a Malibu house while his remodel happens, and his landlord is smooth jazz icon Kenny G). I'm sure Bezos spends more on a hallway closet update than most of us could ever afford for a home purchase, but it begs the question: if one of the world's richest people is remodeling rather than buying, should we all be cutting back??

Aside from billionaires' home reno projects, we are seeing real signs that now is a good time to be spending less and saving more. With uncertainty in the jobs market and inflation still up, making smart choices with your cash today will lead to greater flexibility down the road.?

I recommend finding solutions that offer short-term liquidity, like savings and CD accounts; it's easier than ever to find good rates without locking up your cash for years at a time. This allows you to ride out economic volatility while still being ready to jump at the right opportunity. Utilizing savings and CD vehicles doesn't mean that you move out of the market - just know that your money in stocks and bonds is marked for a longer time horizon.

Efficiency with your spending is also crucial. Think long and hard about any purchase which would require long-term credit card usage. Interest rates are high on the money you save (money market accounts, CDs) but that also means they are high on the money you spend (credit cards, loans). If that big ticket item is in your budget and can be paid off in the same statement cycle? Great! If it means paying an extra load of interest over the next several months or years? See if you can live without that?slice of Justin TImberlake's french toast?you've been eyeing.?

Takeaways

I don't think the economic sky is falling; however, it's wise to be strategic with your spending and savings right now. Look for ways to stay flexible financially - volatility and high interest rates won't hurt as much!?

What are your savings strategies? What would you like to read more about in the banking world? Do you think Kenny G requires first and last month's rent? Let me know your thoughts below!