HARLINGEN, Texas (ValleyCentral) – Many economists expect inflation to remain elevated through the year.

According to an economist survey from Bloomberg, the chance for a recession has increased up to 30 percent. 

Edward Jones’ Financial adviser, Cecilia Valle said there are two things you need to do right away, establish a budget and have an emergency fund. 

“A good rule of thumb is to have about three to six months living expenses in cash, so when you have an emergency, you have that cash to pull from,” said Valle. “A lot of Americans did save money over the last couple of years, and they’re using that savings now.”

Those who are retired are advised to save up to twelve to eighteen months of living expenses.

When it comes to establishing a budget, Valle said it is best to determine how much you are spending and reflect that amount with your income. 

Some things to consider might be reducing a shopping spree or the urge to buy unnecessary expensive objects like a television. 

While many people are worried about how inflation will affect their ability to save for retirement, Valle said they should not feel discouraged. 

She said the amount to contribute into the 401k plan should always reflect your finances. 

“Sometimes people you know put as little as 50 dollars away a month, and sometimes they can put 200 or more away; 401 K’s do have a contribution limit so there is a maximum amount that you can contribute per year,” said Valle. 

According to Valle, contributing to a 401k plan is recommended because most employers match a certain percentage. She said some companies match as much as three to four percent.

If you are concerned or have questions regarding a 401k plan, Valle encourages you to seek help from a financial adviser.