If you are upset about the economy lately, you are definitely not alone. A recent Nemerator survey found that 72% of Americans are worried about a recession next year. Tariffs, stock market volatility and price increase are making many people rethink their financial plans.
Suze OrmanPersonal finance experts and best-selling authors say it’s wise, but it’s even smarter to take action. In last week’s blog post, she came up with some practical steps you can take now just in case things get tough.
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First: Tighten the budget. Now is not the time for holidays, squandering or retail therapy, Allman said. “Every dollar you don’t spend today is a dollar and can be used for many smart recession protection actions,” she wrote.
The suggestion is consistent with what has happened across the country. Numerator reports that 83% of shoppers plan to change their spending habits due to rising prices, while nearly half are looking for more sales and coupons.
Allman’s next suggestion is to strengthen emergency savings. She recommends saving at least one year of living expenses. This way, if you lose your job, see Reduced time or suffer any revenue disruptions, you will have a financial security net.
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If you want a tax refund soon, Orman recommends moving it directly to your emergency fund. This is an easy way to make your savings quickly without immersing in regular income.
Many parents help their adult children, but Allman says it's time to set some boundaries. If you cover specific needs, such as rent, that's one thing. But give extra money? This can hurt your own financial stability, especially if a recession hits.
“I have a problem regardless of the economic outlook, but if you’re not fully prepared for a recession, you’ve done that,” Allman said. Having a candid conversation now can save you a lot of stress.
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If you are out of work, maintaining health insurance through Cobra (COBRA) (federal regulations that allow employees to continue to cover for a limited time) can be expensive. Sometimes, policy holders end up paying 102% of the full premium. Orman recommends using the Affordable Care Act program as an alternative. Depending on your income, you may be eligible for a lower premium.
If you need coverage later, doing some research now can save you thousands of dollars.
Finally, Allman said it was a good time to build new job skills. Whether it’s learning courses, learning new software or updating certifications, adding a resume now can help you keep your current job—or if layoffs happen, landing new jobs faster.
According to the elements, more Americans were worried about job security than a few months ago. Having the latest skills can make everything special.
Taking some smart steps today can help you get through everything tomorrow’s economy brings – following Oman’s advice may make you feel more prepared.
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More than 70% of Americans in this article are concerned about this year’s recession: What Suze Orman says about preparations originally appeared on Benzinga.com
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