In November, the Federal Reserve raised its key benchmark borrowing rate by three-quarters of a percentage point, or 75 basis points, for the fourth increase this year, bringing it to its highest level since early 2008.

The Federal Reserve is likely to endorse even more rate rises at upcoming sessions as officials consider the possibility that persistently strong inflation may As the Federal Reserve interest rates Hike, here is a 10-step plan for taking responsibility for your finances.

Take a quick look at your money.

Identifying one's current financial standing, including savings and debt levels, is a necessary first step in developing a financial strategy.

National Foundation for Credit Counseling spokesman Bruce McClary recommends planning the impact on your budget to the penny. Knowing your financial standing before proceeding is crucial since "we don't know exactly how many rate hikes there are going to be."

Understand the difference between good and bad debt and eliminate the latter.

If you have a fixed-rate mortgage, you won't feel the effects of a rate increase from the Federal Reserve. As interest rates rise, however, individuals with high-interest or variable-rate debt will need to take swift action. They are the debtors who will suffer the most.

When interest rates are rising, the best action is to "pay off your balances faster and make modifications in your budget, so you don't have to rely on your lines of credit and carry debt from month to month," as McClary puts it.

Comparison shop for the best possible loan terms

In a rate-hike climate, comparison shopping will be more crucial than ever.

The historically low refinancing we are accustomed to before has ended now that mortgage rates have risen beyond 7 percent. However, to set themselves apart from competitors, some lenders may be more willing to provide preferential terms than others.

Improve your credit score as soon as possible.

To a greater extent than the Federal Reserve, customers' low credit scores limit their access to low-interest credit. Most of the time, the "safest" borrowers (those with good to exceptional credit scores and consistent credit history) get the best rate offered by financial institutions.

There are other benefits to raising your credit score beyond lower interest rates on credit card debt. It may also help you save money on all your loans, from vehicles to mortgages.

It's important to keep in touch with your credit card companies often.

If your credit card interest rate has stayed the same despite your credit score increase, creating lines of communication with your credit card provider is an important step in your financial plan. NFCC's McClary says issuers may provide a different annual percentage rate. You know it's time to go elsewhere or use a balance transfer card if they don't.

Sad but true: "you realise a lot of really amazing things you might be doing to save even more money when you have those talks with your creditors when times are good," he says, lamenting the fact that so few people have them when times are good.

Compare savings rates from different institutions.

To maximize your savings return, you must be ready to move your money from one bank to another frequently.

Because they don't have the costs of maintaining a physical location, internet banks may offer better returns to their customers' deposits.

To prepare your money for a downturn, you should start immediately.

Now is the time to save because if the Federal Reserve makes a mistake with interest rates, it might limit economic growth or even precipitate a recession.

The economy is being slowed down because of interest rate hikes, according to McBride of Bankrate. The more forcefully they apply the brakes, the more abruptly it will slow down. Due to the accumulative impact of continuous rate hikes, there will be a slowdown in economic activity and the labor market.

It's time to evaluate your job prospects and potential salary.

One of the best investments you can make as living expenses grow is in yourself. Think about ways to improve your lifetime earning potential, such as acquiring new skills or gaining additional education. The unemployment rate is lower for people with a bachelor's degree or more, even during economic downturns, as shown by data from the Labor Department.

According to McBride, the loss of a job or a large decrease in wealth can have a much greater impact on a family's financial situation than an increase in interest rates. "Things like that are typical during economic downturns."