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Reshuffling funds to get the highest yields? Holding out for the right time to borrow? Creating a durable plan for your cash means you can stop obsessing over interest rates.
By
Kevin Brauer, MBA, CPA, CMA
published
10 March 2026
in Features
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Interest rates may be settling, but many Americans continue to hesitate to move to a new home, borrow money, or refinance debt.
This isn't because they're concerned about where rates are headed next. It's because they remember how quickly things changed not long ago.
When borrowing costs rose sharply over a short period in 2025, many people were left with the impression that financial conditions could shift without warning.
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Sign up- Households became more guarded
- Decisions now feel heavier
- There's a strong desire to avoid making the wrong move
That caution is often reinforced by a sense of missed timing. People talk openly about wishing they had borrowed or refinanced earlier or moved cash when rates were lower or higher.
Those moments were largely outside their control, but people tend to blame themselves anyway. When every decision is measured against the past, it's easy for uncertainty to turn into inaction.
One thing that consistently helps reduce that pressure is stepping away from interest rate predictions altogether. The most durable cash plans we see are built around what an individual or family is looking to accomplish, not speculation.
Instead of asking where rates might go, people do better when they start with what their money needs to support.
About Adviser Intel
The author of this article is a participant in Kiplinger's Adviser Intel program, a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.
Focus on the present
Clarity often comes from separating cash into roles.
- Some money is meant for regular expenses and near-term obligations
- Some is there to absorb surprises or provide flexibility when life changes
- Some is set aside for goals that don't require frequent access
When each allocation has a clear goal, people feel less compelled to reshuffle funds or second-guess every decision when rates move.
In periods when rates are drifting down but still elevated, a common source of stress is overthinking the details. Chasing the highest possible yield can make money harder to access or plans harder to manage.
On the other end of the spectrum, we see households holding on to excess cash while waiting for certainty that never really arrives.
Both approaches can quietly limit progress and keep people stuck.
The same pattern shows up with borrowing decisions. Some delay refinancing or consolidating debt because they're waiting for a more attractive rate.
But in many cases, improving monthly cash flow or reducing financial strain now would bring more relief than holding out for a slightly better number later.
What we often see is that once that pressure eases, people feel more in control and better able to focus on the rest of their financial life. Day-to-day finances become less of a constant source of stress.
It's impossible to re-create the past, even as borrowing costs come down gradually.
Instead, we recommend focusing on flexibility in the present. For room to adapt without constant worry, it's useful to balance funds across three categories:
- Readily accessible cash
- Short-term savings that provide some earnings
- Long-term investments for the future
Looking for expert tips to grow and preserve your wealth? Sign up for Adviser Intel, our free, twice-weekly newsletter.
Let go of the past
Letting go of "missed opportunity" thinking is an important mindset shift. Personal finance is rarely defined by a single moment. Progress is built over time, through a series of reasonable decisions that compound.
A choice that improves your position today still matters, even if it doesn't look perfect in hindsight.
From a wellbeing standpoint, a healthy cash approach creates a sense of calm. It allows people to pay bills, handle surprises, and plan ahead without checking rates every week or questioning every move.
That usually comes from having a plan that's clear, practical, and designed to work quietly in the background.
Interest rates will continue to change, and people can't control that. What they can control is their own money and mindset.
A cash plan built for resilience, rather than reaction, helps reduce stress and frees up energy for the parts of life that matter more than watching rate headlines.
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- How to Fight Inflation's Hidden Threat to Your Savings
- How Your Financial Institution Can Help You Dig Out of Debt
This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.
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Kevin Brauer, MBA, CPA, CMASocial Links NavigationPresident and CEO, Affinity Federal Credit UnionKevin Brauer, a distinguished finance industry professional with over three decades of experience, has been at the helm of Affinity Credit Union as CEO and President since January 2023. His substantial contribution to Affinity over the past seven years has been instrumental in propelling the firm's value proposition and innovating its financial well-being initiatives. Brauer leads Affinity's dedicated team of 500 employees at its Basking Ridge, N.J., headquarters and throughout its 18-plus branches.
