Tips for handling your finances in a time of economic uncertainty

By ADRIANA MORGA Associated Press NEW YORK AP Financial markets are volatile Consumer confidence is at its lowest level in five years Economists say recession risks are rising It all adds up to financial uncertainty for a lot of Americans Roughly half of U S adults say that President Trump s transaction policies will increase prices a lot according to a latest poll by The Associated Press-NORC Center of Population Affairs Research And about half of Americans are extremely or very concerned about the possibility of the U S economic system going into a recession in the next inadequate months Related Articles Ticker Microsoft hikes Xbox prices worldwide Populace broadcasting faces cuts Home Showcase Groton home s design highlights natural setting Microsoft hikes Xbox prices worldwide as gaming industry faces tariff uncertainty What does it cost to own a home in Homeownership further out of reach as rising prices high mortgage rates widen affordability gap Matt Watson CEO of Origin a financial planning app says it s a period of uncertainty for everyone including experts No one has a crystal ball No one even the people that do this professionally and have done it very successfully for numerous years know what s going to happen he explained If you re worried about how economic uncertainty might affect you here are various expert recommendations Take stock of your finances The first step to preparing for uncertain financial times is knowing your starting point Watson noted Look at your budget or your debit card expenses so you can understand how much you spend every month Take stock of where you are across a number of different categories Watson mentioned Looking at the state of your savings and investments can also provide you with an idea of your overall financial vitality Find where you can cut back The more nonessential expenses you can pause the more you can save for an emergency Your choice is really to cut now or cut later so it s easier to cut now and have a cushion Watson explained If you re having difficulty finding where to cut back Jim Weil managing partner at Private Vista a financial planning firm recommends that you divide your expenses into three buckets demands wants and wishes Wishes are larger expenses that can be postponed such as a vacation to Europe For the time being cut back expenses from the wishes section until you feel like your finances are in a good place Take care of your mental wellbeing Between news about tariffs and job losses you might feel your anxiety rising So it s fundamental that you protect your mental vitality while also caring about your finances announced Courtney Alev consumer advocate at Credit Karma Sometimes reading too much news that can affect your finances can become overbearing and create more stress than you need It s good practice to stay informed but you don t want to let the news cycle consume you Alev declared If you find yourself feeling high levels of stress or anxiety when it comes to your finances it s best to contact a professional who can assist you such as a financial therapist If looking for regular mental fitness services majority of wellness insurance covers several type of mental fitness assistance If you don t have medical insurance you can look for sliding-scale therapists around the country including through FindTreatment gov and the Anxiety and Depression Association of America directory Focus on what you can control Rather than worrying too much on the economics of the entire country Alev recommends that you focus on the aspects of your personal life that you can control in order to feel more confident in circumstance there is a recession Identify any changes that you might need to make to have more of a safety net in place that could give you confidence Alev announced Things you can control include budgeting creating an emergency fund and cutting unnecessary expenses Create an urgency fund Whether you are worried about your job defense or the high prices of goods it s best that you sit down and reassess your budget to create an urgency fund An crisis fund can feel unattainable if finances are already formidable but having even a small amount of cash saved can make the difference Alev noted Ideally your urgency fund should amount to three to six months of expenses Weil recommends you start thinking about any special commitments that you might have in the next year or two such as college tuition or moving If you are planning for a large financial commitment in the near future Weil recommends that you plan to build a larger exigency fund Do monthly finance check-ins Alev recommends regularly adjusting your budget to keep your financial goals on track Monthly budget check-ins can help identify when you are overspending or if your requirements change A budget is only as good as it is to help you in fact make decisions so don t be afraid to update and adapt your budget as the months go by Alev mentioned Choose which type of debt to tackle first Plenty of Americans struggle with debt whether it s credit card debt or attendee loan debt which limits their ability to save But if you want to create an urgency fund while also tackling your debt it will take certain prioritization I would think about different kinds of debt differently Weil explained adding that you can place debt in three buckets short- medium- and long-term debt Weil recommends that you prioritize paying off high-interest debt such as your credit card By making extra payments or paying over the minimum payment you will be able to pay it off quicker Novice loan debt and long-term debt such as a mortgage can be tackled with more modest payments while you focus on creating an crisis fund If you have credit card debt and you can t make too much progress in paying it down Alev recommends you try to eliminate or reduce the amount of credit you use FILE Specialist Gregg Maloney works at his post on the floor of the New York Stock Exchange Monday April AP Photo Richard Drew File Don t panic about your investments While the stock domain has had several bad days it s best that you are not reactive to the territory If you have investments especially in retirement vehicles such as your k it s best not to make rushed decisions Alev noted You really want to try not to panic It can be unnerving but largest part likely you should have time to make that up she added If you re closer to retirement Alev recommends that you look into more conservative investments The Associated Press receives backing from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy The independent foundation is separate from Charles Schwab and Co Inc The AP is solely responsible for its journalism