Don't Panic. Get Intentional.

Happy Monday, FinanceHeirs!

A few years ago, I moved in with my mom for a year while going through a divorce.

I sold my house and car. Then took a one-way flight to Accra, Ghana, where I lived on a U.S. salary while simultaneously traveling the world.

From the outside, someone could have looked at my life and thought, "Girl… are you on some Eat, Pray, Love journey or something? You gave up everything."

Meanwhile, I was happier, more at peace, and saving money.

Sometimes financial progress doesn't look like having more. Sometimes it looks like temporarily needing less.

I'm telling you this because of what happened on Wednesday, September 16: the Fed Reserve raised interest rates by 0.25%, bringing its target range to 3.75%–4.00%.

If your first thought was, "Okay… what is this about to cost me?" I get it, because I asked myself the same question.

Higher rates can make borrowing more expensive, especially if you carry debt with a rate that can change, like credit cards or a home equity line of credit (HELOC). The Fed has also signaled one more hike could come before the year ends.

Here's what I want you to hear:

Panic is expensive. Intention is free.

You have more control over your financial response than you may think.

If this season asks you to make adjustments, don't be ashamed of it.

Maybe you downsize your house or car.

Maybe you get a roommate.

Maybe you pick up a second job for a season.

Maybe you cut streaming services down to one or two.

Maybe eating out and discretionary shopping take a pause.

Whatever makes sense for your situation, be sure to give every dollar a job.

Here's your financial housekeeping for this week:

1. Pay down expensive debt. If your credit card or other debt has a high variable rate, make it a priority. The less you owe at a high rate, the less you hand over in interest.

2. Put your cash to work. Compare high-yield savings accounts, CDs, short-term Treasury bills and money market funds. Don't assume your savings are earning enough just because they're sitting there.

3. Keep investing. Don't let a changing rate environment convince you to abandon your long-term investing plan. Keep contributing, stay diversified and give compounding time to work in your favor.

Bonus: Have a low fixed-rate mortgage or car loan? Your rate isn't changing. Don't refinance because of a headline. Run the numbers first.

Sometimes you have to make uncomfortable financial decisions today to create a more comfortable life tomorrow.

I've lived that.

If you're in a season where you're cutting back, restructuring or picking up extra work, don't look at it as failure. Look at it as positioning.

Because the way you manage your money in this season will help shape the options you have in the next one.

Don't panic. Get intentional. Give every dollar a job.

That's how we Make Dollars Make Cense.

Until next Monday,

Monia

Kotoka International Airport, Accra, Ghana