Opportunities to Survive/Thrive in the Current Environment!

A short time ago, the Federal Open Market Committee (FOMC), the branch of the Federal Reserve (Fed) that sets U.S. monetary policy and short-term interest rates, hiked rates for the first time since July 2023. Unfortunately, several other data points are just as disturbing:

  • Recorded U.S. Bankruptcy filings in July were 54,658, up 10.1% over July 2025, up 23% over July 2024, and the largest July since 2019
  • The average 30-year fixed-rate mortgage is now around 7%
  • The Prime Rate (the interest rate for the most creditworthy borrowers) is also 7%
  • The U.S. inflation rate at mid-year is running around 3.4% and gasoline prices are roughly 25% higher than this time last year

While the current Middle East conflict and loss of oil supplied from the Persian Gulf are viewed by some (with political aspirations) as catalysts for the Fed rate hike, those factors were not the primary reasons why the Fed raised rates. The Fed raised rates because inflation has exceeded the Fed’s inflation target of 2% for 62 consecutive months, the longest consecutive streak above the target since its adoption. So instead of placing blame or taking political sides, we believe embracing two proven economic strategies will help you survive and thrive this inflationary period until it starts to cool down and take the pressure off prices.

Strategy #1 – Solidify your Foundation

It has been widely reported that more than a third of Americans indicated they could not cover a sudden $400 expense with cash or cash equivalents. Try to implement the following strategies to survive/thrive the current economic times:

  • Pay mortgage/rent, utilities (power and water), food, and medicine before anything else
  • Audit monthly subscriptions and trim all non-essential spending
  • Start a fixed amount auto-deduction savings account with a goal to save 3 months of expenses (and then redirect the auto-deduction savings amounts to pay-off or pay-down all high-interest credit cards once the goal is achieved)

It is essential to recognize that taking care of you and your family’s needs must come first.

Strategy #2 – Enhance your Cash Flow

These strategies are related to #1, but are slightly different:

  • Buy generic brands and bulk staples to counter food and gas inflation
  • Look for side hustles such as overtime, rideshare driving, or delivery work
  • Stop/limit dining out expenses, coffee runs, and impulse shopping

In addition to the above strategies, ITCU has actively designed and launched several “free” products to help you manage cash flow better and save money. More free products are on the way over the remainder of 2026. You owe it to yourself to check us out again. We think you’ll be pleasantly surprised at what you find.

Kent Lugrand
President/CEO