If you’re feeling uneasy about the economy lately, you’re definitely not alone. A recent survey from Numerator found that 72% of Americans are worried about a recession hitting within the next year. Rising tariffs, stock market swings, and price hikes are making a lot of people rethink their financial plans.
Suze Orman, personal finance expert and bestselling author, says it’s smart to be concerned — but even smarter to take action. In a blog post last week, she lays out some practical steps you can take now to get your finances ready, just in case things get rough.
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Cut Back on Spending
First up: tighten your budget. Orman says now isn’t the time for big vacations, splurges, or retail therapy. “Every dollar you don’t spend today is a dollar that can be used for so many smart recession-protection moves,” she wrote.
This advice lines up with what’s already happening across the country. Numerator reports that 83% of shoppers are planning to change their spending habits because of tariff-related price hikes — and nearly half are hunting for more sales and coupons.
Boost Your Emergency Fund
Orman’s next piece of advice is to beef up your emergency savings. She recommends having at least a year’s worth of living expenses saved up. That way, if you lose your job, see reduced hours, or have any income disruption, you’ll have a financial safety net to fall back on.
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If you’re expecting a tax refund soon, Orman suggests moving it straight into your emergency fund. It’s an easy way to give your savings a quick boost without dipping into your regular income.
Have Honest Conversations With Your Adult Kids
Many parents help out their adult children, but Orman says now’s the time to set some boundaries. If you’re covering a specific need, like rent, that’s one thing. But giving money for extras? That can hurt your own financial stability — especially if a recession hits.
Orman says, “I have a problem with that, no matter what the economic outlook, but it is insane to do this if you are not fully prepared for a recession.” Having a candid conversation now could save you a lot of stress later.
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Know Your Health Insurance Options
If you lose your job, keeping your health insurance through COBRA — a federal regulation allowing employees to continue their coverage for a limited time — can be expensive. Sometimes, policyholders end up paying 102% of the full premium. Orman recommends looking into Affordable Care Act plans as a backup option. Depending on your income, you might qualify for a much lower premium.
A little research now could save you thousands if you need coverage later.
Upgrade Your Skills
Finally, Orman says this is a great time to build new job skills. Whether it’s taking a course, learning new software, or updating certifications, adding to your resume now could help you keep your current job — or land a new one faster if layoffs happen.
According to Numerator, more Americans are worried about job security now than just a few months ago. Having up-to-date skills could make all the difference.
Taking a few smart steps today could help you weather whatever the economy brings tomorrow — and following Orman’s advice might make you feel a whole lot more prepared.
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This article More Than 70% Of Americans Concerned About A Recession This Year: Here’s How Suze Orman Says To Prepare originally appeared on Benzinga.com
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