How to prepare for stagnation: 5 money rules recommend experts

It is not just intuition. The prediction market is currently estimated 55 % chance of stagnation In 2025, more than 30 percentage points have risen since Trump 2.0.

President Trump Anarchy tariff campaign Send financial markets to a tail, consumer confidence and supply course Attrads of stagnation. The slogan “made the wealthy America again”, along with the threats of the aggressive trade war, caused more economic chaos than condemnation.

When families see a decrease in their investments, the battle High prices and WorryThey tend to have less. When companies are not sure where the markets are going, they tend to reduce costs and delay employment. These factors alone pay the economic slowdown.

He said the financial uncertainty could become a prophecy of self -realization, and he said Shang SavidraThe founder and CEO of Save My Cents, a personal financing education platform.

The possibility of stagnation causes anxiety and stress. Although it is painful as it is, economic contractions are not abnormal. Modern capitalism has a historical boom and a bust cycle. Since the middle of the twentieth century, the United States has witnessed a contraction almost once every 5 to 7 years, with an average of 11 months.

The last American recession began with the Covid-19s in March 2020. By April, More than 16 million jobs I lost. Federal policy makers have implemented relief and recovery measures to alleviate hardship and help stimulate economic recovery. The stagnation of the epidemic was the deepest, but also the shortest in the afternoon of World War II.

Since then, the economy has expanded significantly, as many experts have said that we are due to re -appointment. “It is never a matter ifbut when “The next recession is,” Savidra said.

Looking back at the previous recession can help us understand what we face and allow us to take proactive action regarding money decisions. This means Log in with our financial plans And knowing the changes we need to make on the right track.

5 ways to protect your money in stagnation

Here are five steps, experts say you can now get your money in a turbulent economy.

1. Be prepared, not panic

even if The economy is chaosThe recession was not formally hit. Most of us still have a time to assess our financial situation and develop a plan before the pressure of economic shrinkage becomes frightening.

Currently, focus on creating realistic guarantees and strengthening your financial organization. Think about the specific steps you will take if you lose your job. Contribute to Emergency Fund And manage your Debt levels Now a temporary store can be created against possible stagnant financial shocks.

Uncertainty can lead to flowing procedures, such as selling investments with a loss, which can bring you back in the long run. “Fear narrows our focus and limits our cognitive ability, so it is really important to prepare now,” he said, he said Lisa Contran-CaraoseCEO of JVS Bay, which is the process of non -profit workforce development.

2. Cash stock

Criticism is the key during stagnation. in Function occurred Or a decrease in working hours, you should be able to cover your monthly bills without relying on credit cards or indulging in your retirement account.

Experts recommend that there is an emergency box that allows you to cover living expenses from three to six months. To settle on an amount that makes you feel safe in your financial situation, think about your current income and stability of jobs; Your monthly expenses (housing, medical bills, grocery, facilities); And your future plans (expanding your family, moving, and sponsoring a member of his family).

To prepare, Set your budget And avoid extension of your money a lot with unnecessary expenses. Delaying the main purchases such as holidays or buying a house, trying to contact invoices (facilities, cable, car insurance, etc.) to see if they have any discounts or promotional offers.

Professional advice: The best place to keep your emergency box is in an account you can access, which makes your money safe. Savedra recommends a High -yield savings account Because it is liquid and provides solid returns on your balance. Capital market accounts and deposit certificates (CDS) also be options.

3. Start searching for a job before you need it

When mass demobilization occurs during the recession, it may take months to find a new work. Last year, before talking about the recession until he took the headlines, it took job seekers on average Eight months And 294 requests for decline.

Continent Man Kearz said part of building your financial safety network includes planning for job loss before it occurs. But preparing for a CV is only the first step. You can open actual communication to expand your professional connections doors on new opportunities.

More importantly, try 30 minutes every week to focus on Build new skills To help you distinguish for employers. Doing this preparatory work while working can help you more easily to new roles or industries.

“It does not matter where you are in your career or workforce, it is not important to build skills about technology-especially artificial intelligence-critical thinking, cooperation and communication,” said Contesty Man Kearz.

Professional advice: The finding of side bustle or independent work can provide additional income and provides protection against the loss of potential jobs or reduced working hours.

4. Follow a measurable approach to your investments

Although the market slowdown is worrying, you do not always need to fix your investment strategy. The stock market has a history of recovery from declines and growth over time. Selling when things often mean A meman for the recovery.

For most people, staying in the course is better than making radical changes: stick to a mixture of investments that you feel comfortable with and continue to invest.

“If retirement is at least five years, then this is not the time to panic,” Savidra said. However, if you are approaching retirement, it may be useful to consider safer investments. Money market boxes or CDs may be good options if you need more balance and less risk.

5. Give priority out of debt

Getting debt becomes more cushion during the recession, especially if you have a high interest credit card balance when you enter. If the inflation remains high or increased, then those APRS will become more painful.

You You do not need to be 100 % debt -free To overcome the recession. The goal is to reduce your financial weakness, not to deplete your savings.

Before processing debt, Saavedra recommends that there is at least one month of living expenses saved in your emergency box. Next, start paying the debt with the highest interest rates (10 % above) to pay less useful over time.

If you are distorting many of the debts of high interests (medical bills, credit cards, etc.), you may also think about Debt unification loanWhich combines these debts in one personal loan with one fixed monthly batch.

Another strategy is to transfer your credit card debts to Balance transfer card With APR primer 0 %, which gives you a breathing space to avoid interest fees for 12 to 24 months. Once this preliminary period ends, the regular APR starts for the card, so you need a plan to pay the remainder.

Mobility in an uncertain financial future

Running is not new. The economy revolves regularly during growth and decline periods. This does not make economic shrinkage less frightening. But all we can do is try to protect our financial life and protect what we have. This is much easier in the plan.