From 2019 to 2020, Colorado's GDP held steady, prompting many financial experts to predict an impending recession. Contrary to expectations, the Centennial State's economy not only navigated the challenges posed by the pandemic, high inflation, and the Ukraine conflict, but also witnessed a remarkable 24% growth over the following two years*. As we step into 2024, economists are now forecasting that the nation will steer clear of a recession - but may experience a notable slowdown. In preparation for potential economic shifts, we consulted with local experts to gather tips on weathering a more subdued economy - just in case the analysts are accurate this time.
1. Hone Your Culinary Skills
Despite Denver experiencing higher inflation than the national average in September 2023 (5.4 percent compared to 3.7 percent), Bill Craighead, the program director of the University of Colorado Colorado Springs' Economic Forum, anticipates a stabilization of prices in 2024*. However, one exception could be the restaurant industry, which continues to grapple with staffing shortages, possibly leading to higher wages to attract workers.
2. Embrace Long-Term Savings
During periods of high inflation, utilizing a high-yield savings account becomes a strategic financial move. By choosing a high-yield savings account, you position yourself to counteract the diminishing value of money, fostering a more robust and resilient financial strategy in times of economic uncertainty. This includes an offering from Colorado Federal Savings Bank*, a Greenwood Village-based online-only institution that may lack ATMs but boasts an Annual Percentage Yield (APY) hovering around 4.5 percent, making it one of the highest in the country.
3. Job Persistence
Denver residents have a penchant for the "play hard" aspect of life, and they might be more inclined than the average individual to seek new opportunities in their careers. If you're contemplating a career change in 2024, consider waiting until you've secured a new position. According to Jen Weinberger from Goldstone Partners*, a Denver staffing agency, the local job market is becoming more competitive as the initial surge in startup growth stabilizes. To enhance your chances, polish your networking skills for events and update your resume. Keep in mind that bringing along friends can make networking more enjoyable, and - also - one should consider researching staffing companies that provide complimentary CV consultations, which could help you stand out to hiring managers.
4. Invest Wisely
Explore investment options that provide returns that outpace inflation. Consider allocating funds to assets such as stocks, where the potential for capital appreciation is higher, OR REAL ESTATE, which historically has shown resilience against inflation (PS - contact us if you want to chat). Additionally, explore inflation-protected securities, such as Treasury Inflation-Protected Securities (TIPS), which can provide a safety net by adjusting returns in line with inflation rates. This diversified approach not only helps safeguard your wealth from the erosive impact of inflation, but also opens avenues for potential growth in a dynamic economic landscape.
5. Negotiate and Shop Smart
Don't hesitate to negotiate prices, especially for services. Providers may be open to offering discounts, particularly if you've been a loyal customer. Additionally, be strategic about your shopping – buy in bulk, use coupons, and take advantage of loyalty programs to maximize savings on your purchases. Another way to shop smart is to consider more affordable alternatives for your regular purchases. Explore generic brands, reduce your subscriptions, shop during sales, and compare prices across different retailers. Finding ways to reduce your everyday expenses can significantly contribute to saving money during periods of inflation.
Disclaimer: The viewpoints expressed in this article may not necessarily align with the perspectives of Ford Fountain Team. Readers are advised to exercise due diligence and engage in additional research before making any financial decisions based on the information presented. The content provided is for informational purposes only and may not encompass all factors relevant to individual financial situations. It is crucial to consider a variety of sources, consult with financial experts, and evaluate personal circumstances before reaching any financial conclusions. The material offered should not be construed as financial advice, and readers are encouraged to seek professional guidance tailored to their specific needs and goals.