Many Americans currently feel the economic climate is unsteady. Consumer confidence is sinking, and a new survey shows that nearly a third of workers in the U.S. have job security concerns and fear losing their jobs. In times like this, there are a few crucial steps you can take to get your finances in shape.
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Revisit your budget
Reviewing your budget is essential to cut back on unnecessary spending. Take special note of paid subscriptions that can be canceled or paused, negotiate pricing with phone and internet providers, and cut back on service expenses like landscaping and pool cleaners. Additionally, start scaling back luxury purchases and non-essential spending like facials and pricey hair services. Any money you save in these areas can be put to better use, should an unexpected situation arise. Regularly reviewing your spending habits will not only help you stay afloat, financially, but also gives you a sense of control over your money when uncertainty looms.
Shore up your emergency fund
Around 41% of people experiencing job loss resort to an emergency fund for support. Three to six months’ worth of essential living expenses is a suggested standard for an emergency fund. If yours isn’t there yet, now is the time to shift your focus to increase your savings so that you don’t have to rely on credit cards and take on additional debt if it happens. Having this safety net will help provide a cushion and reduce stress and pressure of financial worries.
Tackle debt
Tackling debt now will make it financially easier should you lose your job. Eliminating debt payments will leave more for you to contribute toward your essential monthly living expenses. Consider tackling the high-rate debt first as this will help eliminate paying more toward interest in a time of financial uncertainty. Being proactive about paying down debt is a key step in financial stability, especially in a volatile job market.
In times of economic uncertainty, taking control of your finances is more important than ever. By revisiting your budget, building up your emergency fund, and tackling debt, you can reduce your financial stress and be better prepared for whatever comes next. While it might feel overwhelming, these steps are manageable and can make a significant difference in ensuring that you remain financially resilient, no matter what the future holds.
Author: Rachel Caballero is community development and PR manager for TruWest Credit Union. TruWest® Credit Union is headquartered in Tempe, Ariz. and operates as a cooperative providing its members with a lifetime of quality financial services and a culture of caring for its organization, employees and communities. TruWest is a strong and sound financial institution with more than 90,000 members and assets totaling more than $1.8 billion. TruWestCredit Union has 11 financial service centers —eight in metro Phoenix and three in Austin, Texas. For more information, visit https://truwest.org/.
