With economic uncertainty comes financial uncertainty. In a recent study, 57% of respondents in a National Foundation for Credit Counseling report saying economic instability is the reason they’re unable to succeed in long-term goals. The report also showed that many in the U.S. are struggling financially, with 53% of adults saying their progress is perpetually interrupted with setbacks and 43% saying maintaining financial stability is a struggle.
If this is you or you want to get more prepared, follow these tips so you can weather financial storms:
Separate Essentials From Extras
When looking at your finances, it’s important to know what’s essential and what’s extra. Essential line items include your rent or mortgage, groceries, utilities, and transportation, while extras can include recreation and subscriptions. Cutting back on those extras, allows you to have more money leftover to put into savings or direct toward paying down your debt.
Take Control of Your Debt
Sort your debts into two categories: those with the highest interest rates and those with the steepest penalties for missed payments. Paying these off first can help minimize financial consequences and protect your credit score. If you’re struggling, contact your credit card issuer to discuss hardship programs or request forbearance, which can temporarily reduce or pause your payments—though interest may still accrue during this period.
Make Saving a Priority
If you’re able to, put money away each month into a savings account. This will provide you with a safety net if there’s an emergency and helps you plan for the future. The 80/20 rule advises paying 80% of your income toward your household expenses each month and 20% towards saving.
Get Support From a Financial Professional
Seeking help from nonprofit credit counseling agencies can help support you on your path to financial stability. Certified credit counselors can help you with budgeting, financial literacy, and goal planning. If you’re having a hard time paying back your debt, a counselor can enroll you in a debt management plan, allowing them to work with your lenders to combine your credit cards into one monthly payment and reduce your interest rate, all to be paid off in three to five years.
Bottom Line
Even in an unpredictable economy, you can take control of your finances. Focus on your essentials, manage debt carefully, save regularly, and seek guidance when necessary.