When it comes to personal finance, there are a lot of factors outside your control. You can’t control politics, pandemics, market trends or new technologies. However, you can control your habits.
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Austin Williams, a personal finance expert and YouTuber, knows a thing or two about how to generate savings. In a recent YouTube video, he gave tips on managing your finances in times of economic uncertainty.
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Know Your Priorities
Staying grounded and understanding your priorities can help you withstand the challenges of economic uncertainty. Williams urges you to ask, “What are the most important things in my life?” Weigh different ideas like stability, security, freedom, comfort and convenience.
“When you’re aware of what’s most important, your spending becomes more intentional and your decisions become more aligned with your values,” Williams said.
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Reevaluate Your Emergency Fund
An emergency fund is vital for your financial well-being. This is a savings stash you keep in case you run into unexpected expenses like your car breaking down, a medical crisis or losing your job and needing money for day-to-day costs. Having an emergency fund guarantees you won’t need to go into debt to get out of a jam.
Even if you already have an emergency fund, Williams suggested revisiting how much you’re putting toward it and how much it would cover.
“Knowing how long your emergency fund will last will help you be informed of where you’re at financially and make smarter decisions to make your money last,” he said.
If your emergency fund will only keep you afloat for a month or two, it might be time to start saving more.
Adapt To Changes
Uncertainty often means changes are coming. If you’re unable to adapt, you’ll probably find yourself in worse financial shape than you started. Williams shared the adjustments he’s made recently, including putting more savings toward his emergency fund, diversifying his income and changing his budget. While these changes might not be effective for your situation, it’s important to stay flexible and open-minded to secure your financial future.
Pause Before Buying
One way to generate more money for your savings is to reflect on your spending.
“Whenever you feel the urge to buy something, give yourself 24 to 72 hours to reflect on it and ask yourself: Will bringing this item into my life make it better?” Williams said.
Finance YouTuber Rachel Cruze has a good way to limit your online spending. She suggested adding an item you want to your cart but not purchasing it for at least a day. That way, you can decide if it was just an impulse buy or something important to you. Being honest with yourself and giving yourself time for the initial excitement to fade will help you make better judgments.
Have ‘No-Buy’ Days
To supercharge your savings, try getting in the habit of having a “no-buy” day once a week. During this day, don’t spend a cent on anything, including online shopping, takeout or an app download.
According to Williams, “By doing this small pause once a week, it can help you become more intentional with your money because we often spend out of boredom, stress or routine, not because we need it.”
Over time, this no-spending habit can add up to a large amount of extra cash you can put toward something you need.
Don’t Spend What You Don’t Have
Even if you have a steady monthly paycheck, that money isn’t yours to spend until it reaches your bank account. In 2024, the average credit card balance in the U.S. was $6,730 per person, meaning a lot of people are spending what they don’t have. However, even planning to buy things based on money you assume you’ll have later can be disastrous in uncertain times.
Williams cited the adage “Don’t count your chickens before they hatch.”
“In uncertain times, assumptions can be dangerous. Just because you expect a bonus, a tax refund or a big paycheck next month doesn’t mean it’s guaranteed.,” he said.
Be safe and plan your finances based on what you actually have.
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Sources
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Austin Williams, 12 Essential Frugal Habits to SURVIVE 2025
This article originally appeared on GOBankingRates.com: 6 Frugal Habits To Survive Economic Uncertainty, According to Frugal Living Expert Austin Williams
