Suze Orman Says Don’t Worry About a Recession — Do This Instead

Many financial experts and investors are bracing for a recession. According to research by J.P. Morgan published on April 15, 2025, the probability of a U.S. recession is at 60%. A recession, which is characterized by a few key traits including a major, sustained decline in economic activity; a rise in unemployment; and a decrease in consumer spending, can be incredibly difficult to financially navigate, but it’s also an inevitable part of life in a modern capitalist economy.

Contents

Reduce Spending Fuel Up the Emergency Fund Get Real With Your Adult Kids Prep Your Finances for Covering Your Own Healthcare Invest In Money-Making Skills

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We’ve been through recessions before, and we will go through them again — even if we don’t experience one in 2025. It’s useless and potentially even destructive to worry, so heed financial guru Suze Orman’s advice shared in a recent blog post on her website and take action, instead. Being proactive will help ease your anxiety and secure your financial future.

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Reduce Spending

You may have already been thinking about cutting back on spending because of the nearing financial impact of tariffs on the cost of a laundry list of items. You should absolutely follow through with pulling the reins on spending.

“Every dollar you don’t spend today is a dollar that can be used for so many smart recession-protection moves,” Orman wrote. “This is a call to focus on needs, not wants.”

Learn More: Trump Isn’t Ruling Out a Recession This Year — What Could That Mean for Your Wallet?

Fuel Up the Emergency Fund

Some financial experts say it’s OK to have three months of living expenses set aside in an emergency fund, but Orman is more conservative and thinks you need at least a year of liquid savings at the ready. Keep this money in a high-yield savings account (HYSA) so that it’s generating interest while sitting there.

Get Real With Your Adult Kids

This one only comes into play if you have grown children or other adults who you help out financially. If you’re impacted by a recession, being the generous mom or the benevolent aunt may not look the same. Orman warned against “bankrolling wants of theirs, not needs.” Get real about their financial needs without compromising your own financial safety. A transparent talk, at the very least, is definitely in order.

Prep Your Finances for Covering Your Own Healthcare

If you get healthcare through your job, you need to stand ready to lose it — or, rather, lose it as it is now should you get laid off. Be prepared to spend an awful lot of money to keep coverage for you and your family.

“If you have health insurance through your employer, and you are laid off, you will likely be eligible to keep the coverage for up to 18 months, under a federal regulation called COBRA,” Orman said. “But there is one huge catch: You will be 100% responsible for the entire cost of the premium. In fact, you can be charged 102% of the total premium to cover administrative costs.”

Invest In Money-Making Skills

If you’ve been thinking about, say, investing in a course to learn how to adopt and finesse AI skills so as to empower your career, get on it. “Maybe this helps you stay employed right where you are,” Orman wrote. “But even if you are laid off, being able to tout up-to-date and in-demand skills on your resume is going to be a big boost to landing your next job.”

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