NASHVILLE, Tenn. (WTVF) — It seems like every week there's a new punch to the wallet.
"Everything is hot. I mean food, gas, clothes, everything," Nashville resident Charles George said.
On Tuesday, The International Monetary Fund made a grim prediction for next year, saying there's no end in sight for the economic pain.
Experts say there are things you can do to be prepared, though.
The first step is making a plan.
"We got people that make $10,000 extra per month and people that barely make it every month. No matter what, I think you need to start to put together a budget," said Founder and Lead Wealth Advisor at R.D. Smothers Wealth Management Dale Smothers.
He said it's important to know where every dollar you make goes.
"We all come from different backgrounds; we all have different relationships with money — but you've got to be able to get your mindset right and know that money will do what you tell it to do unless you tell it to do nothing, and then it will be gone," he said.
Smothers said if you're a beginner, treating the stock market like a casino isn't recommended. Instead of stock picking, try indexing.
"One of the indexing strategies that we like to do is just buy the entire S&P 500. That's literally saying, 'I'm going to cast a wide net.' You're fishing with a net in a school of fish as opposed to a fishing pole."
He said you have to remember compounding interest takes time.
"If you're just starting out, this thing is built to fly. The U.S. stock market is built to go up; participate in it. Give it gas. What do I mean by that? I mean put money in the stock market," he said.
Smothers also shared advice if you are nearing retirement. Listen in the video player below:
