- Low unemployment is a sign of a strong economy.
- It’s a good time to ask for a raise.
- Saving for retirement and emergencies are critical financial moves at any time, especially now
The unemployment rate in September 2018 was 3.7 percent, down from 3.9 percent in August. It hasn’t been this low since 1969. This rate is a sign of a strong economy, yet it also represents an opportunity to do some financial housekeeping.
Click to see the best and worst states if you’re unemployed and want a job.
Best Money Moves When the Economy Is Strong and Unemployment Is Low
Here are five things you should do now while the economy is strong:
1. Check on your retirement savings. Use a retirement savings calculator to determine if you are on track to fund the retirement lifestyle you want. A strong economy often goes hand in hand with inflation, so you might want to increase your estimate of how much you will spend in retirement and adjust your savings accordingly.
2. Review your investment strategy. The Federal Reserve continues to raise interest rates, another sign of a strong economy. This means that those safe investments that have been paying next to nothing for the past few years, like CDs and fixed interest accounts, could soon be more attractive.
3. Buy a home or refinance your mortgage. As interest rates rise, new mortgages will have higher rates. If you haven’t yet, you might want to refinance your mortgage now before the rates go up. A 30-year fixed rate averaged 4.71% APR during the week of Oct. 4, 2018, for example. This rate average was one basis point lower than the week before, but rates were inching higher for the five weeks prior to that. And if you’re thinking about buying — now might be the time to take the plunge.
4. Save more. When the economy is good, the temptation is to celebrate by spending a little more freely. But anyone who learned how to survive the 2008 crisis can tell you that what goes up must come down. It’s a good time to stash some cash for a rainy day.
Use These: 39 Ways to Save for Your Emergency Fund
5. Ask for a raise. With low unemployment, you’re worth more to your employer. They might be willing to pay more to keep you if they think they’ll have trouble replacing you. So, if you haven’t gotten a pay hike in a year or two, now might be the time to ask for that raise.
Click to read about the great reason why people are quitting their jobs at record rates.
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