It pays to take these to heart.
- Today’s economic conditions are challenging on many levels.
- Financial expert Suze Orman has some solid advice on how to navigate these tricky times.
- Cutting back on spending and rethinking your emergency fund could go a long way to improving your financial situation.
Two years ago, the U.S. economy was in obviously bad shape. Unemployment was rampant, small businesses were shuttered across the country, and stocks were trying to wiggle their way out of a recent plunge.
Fast forward to the present, and things look a bit different. Not only are jobs abundant, but many companies are desperate to hire, so much so that they’re throwing higher wages at workers in an attempt to lure them in.
But while the jobless rate is considerably lower now than it was two years ago, many Americans are in a comparable position financially where they’re struggling to keep up with their bills. Now, instead of being held back by unemployment, consumers are having difficulty managing their rising living costs. And while we’ve seen a decent amount of wage growth since the start of the pandemic, at this point, even workers whose income has increased are unable to keep up with inflation.
Compounding the issue right now is a months-long period of stock market volatility and a recent pronounced plunge that briefly sent the S&P 500 index into bear market territory, marking a 20% decline. The S&P 500 is generally considered an indicator of how the stock market is doing on a whole. And these days, that can be summed up as “not well.”
Not only are stocks down while living costs are up, but many financial experts are warning that a recession is imminent. And financial guru Suze Orman concurs. In a recent podcast, Orman said that she expects a recession to hit later this year or in early 2023. And in light of that, here are three key money moves she’d advise everyone to make right now.
1. Cut back on spending
Many people are raiding their savings and racking up costly debt to keep up with inflation. But that’s a move that could cause consumers a world of hurt if a recession strikes.
During a recession, layoffs can be rampant, and so you need as much savings as you can get to tide yourself over in the event of job …….