Tips to Protect Wealth During Economic Challenges - Money Tip Tuesday

Recession, crisis, tariffs, inflation—all these words circulating around the media and internet for the past few weeks have made many people uneasy and a little frightened about the future. Stories of an alarming nature are circulating daily, so if you're beginning to feel spooked, you're not alone.

Whether or not a real economic crisis will happen is hard to predict, but setting some safeguards for your financial future can give you some solid peace during turbulent times.  

Links:

• Set aside cash in a savings account for potential emergencies
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Transcript: 

Welcome to Money Tip Tuesday from the Making Money Personal podcast.  

If you've been following the news lately, you're likely hearing alarming messages warning of a looming recession, empty store shelves, economic uncertainty, and the possibility of a global financial crisis.   

Many of our brains are wondering how likely we are to experience these challenges and, if so, when.   

First and foremost, it's crucial to stay calm. Remember, news stories are often sensationalized for attention-grabbing headlines, with little substance behind them.  

This doesn't mean that there might not be some financial challenges coming down the pike, but the good news is that, we can take specific, measurable steps to safeguard our finances for the possibility that something might occur.  

If you're feeling uneasy about your financial future, here are a few ways to safeguard your finances during economic challenges and even recessions.   

1. Save money. If economic uncertainty increases, the chances of job loss, price increases, and unplanned expenses go up. Having money set aside for those purposes is not just wise, it's a crucial step towards feeling secure and prepared. Having money saved in an emergency fund can also keep you from relying on credit or dipping into retirement if you need money. It's wise to have some saved in an account you can easily withdraw from, and to even have a portion of it as cash at home in case there are tech disruptions, or you don't have the time to get to a bank or ATM. 
2. Work to pay down excessive debt. When it comes to economic uncertainty, crippling debt can be a liability. Many Americans carry a variety of debts, but if your debt has become burdensome to the point that it's causing stress, you owe it to yourself to do something about it. Those carrying crippling debt don’t have the freedom to adapt which proves so valuable during economically challenging times. To safeguard your financial health against economic challenges, it's important to start paying down your debt. Focus on an effective debt-reduction plan like the debt snowball or debt avalanche method. If you’re unsure where to start, check out our debt reduction webinar on our YouTube channel for a practical and easy-to-follow debt-reduction strategy.  Don’t panic and feel that you have to be fully debt-free to weather an economic storm. Instead, focus on minimizing your debt to free up more income for your needs as they arise. 
3. Review existing investment portfolios. If you're worried ab