I’m a Financial Advisor: These 3 Money Moves Matter Most When the Economy Feels Unstable
Written by
Laura Bogart
Edited by
Kristen Mae
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From the sticker shock at the grocery store to the news stories that haunt your commute, you’re well aware that the economy feels uncertain. But anxiety about global financial instability won’t resolve your most pressing questions: How do you protect your own money when the chips are down? With so much financial advice competing for your attention — some of it far more reliable than the rest — how do you know which money moves are most important?
To cut through the fear — and the noise — GOBankingRates spoke with two financial professionals about the strategies they prioritize when economic uncertainty rises. Philip Gallant, managing partner at The Optimus Group, LLC, and Kenneth Thomas, financial advisor at Southern Capital Solutions, shared three money moves they feel matter most in an unstable economy, along with guidance for staying grounded when emotions run high.
Three Money Moves That Matter Most
1. Reduce Debt and Build Cash Reserves
To reduce stress and regain your financial equilibrium, Gallant recommends cutting or eliminating debt, including credit cards, personal loans and even mortgage payments.
Once debt is under control, it’s time to build cash reserves. Gallant favors strategies that allow people to access cash without permanently sacrificing growth on their savings.
“Many people are unaware that one of the best strategies is to own cash value life insurance with a mutual life insurance company that offers non-direct recognition loans,” he said. “This means the insurance company will still pay dividends on your full cash values, even on money you may have taken out as a loan to help in an emergency or finance a major purchase, such as a car.”
Gallant emphasized that this approach isn’t for everyone, but said it can appeal to those who value privacy and flexibility. Transactions are private, don’t require a credit check and generally don’t affect your credit score.
“The added benefit is that while it’s always smart to ‘repay yourself’ when borrowing from your policy so you have access to those funds again in the future, any outstanding loans are simply deducted from the life insurance death benefit when you pass away,” he said. “Therefore, you’re not leaving a liability behind for your family to deal with if the unexpected happens.”
2. Know Your Exposure to the Market
Thomas said many investors don’t fully understand how their assets are allocated; they primarily read statements to see whether they’ve made or lost money. In times of economic uncertainty, it’s important to know exactly where your money is invested and whether that aligns with your risk tolerance.
“So, if a client is really risk-averse and we notice 90% of their equities are in stocks, then we have to re-evaluate their portfolio to match their risk tolerance,” he said. “It wouldn’t be a bad idea to allocate assets to more conservative options as you get older.”
Understanding your exposure doesn’t mean abandoning growth, but rather making sure your portfolio reflects your goals, timeline and ability to weather downturns without panic.
3. Monetize Additional Skills
When the economy feels unstable, every penny counts — which is why Gallant recommends diversifying income streams. Maybe you can turn a hobby into a side hustle or start an online business selling old toys or coins from your attic on eBay. Love walking dogs or making coffee? There’s a way to earn extra income.
If you build your own business, you can connect with a professional to learn about tax advantages and deductions available to you. For Gallant, the biggest benefit is knowing you can stand on your own two feet, even when the economic ground feels unsteady.
“Having control over your financial future is more exciting when you know you’re able to produce income to supplement — or eventually even replace — your salary,” he said.
Overcoming Your Anxiety
Both experts said clients are prone to making rushed or emotional decisions when economic uncertainty gets the better of them. They shared suggestions for getting in the right headspace to make smarter money moves.
Don’t Get Impulsive as an Investor
When Thomas works with skittish clients who want to make sudden moves based on headlines or short-term market swings, he asks a simple question: Will this move create flexibility or leave you boxed into a worse position?
He also reminds clients that the S&P 500 has historically averaged just over a 10% annual return since 1957, despite numerous recessions, wars and financial crises.
“Unless you’re getting older and closer to retirement, the smart move is to stay the course and be defensive by placing assets in environments that match your risk tolerance,” he said. “Moves like this can prevent you from hitting the panic button and wiping out potential long-term gains.”
Work With a Professional
Gallant finds many clients’ fears are fueled by headlines — especially those nearing or in retirement who worry about taxes and inflation. Working with a financial advisor can lift some of that mental burden.
“I like to sit with a client, address the specific fear directly and model that scenario in their plan, then compare it with what happens if the sky doesn’t actually fall,” he said. “Usually, I can point out that the worst-case economic scenario may not have the dramatic impact the client is envisioning.”
He encourages you to ask your advisor to clearly model different scenarios so you’re equipped with the best possible information.
The Bottom Line
Even when the economy feels uncertain, fear doesn’t have to drive your financial decisions. Take a breath. Focus on reducing debt, saving cash, understanding your asset allocation and finding ways to diversify income. Most importantly, remember that you don’t have to navigate uncertainty alone. Trusted professionals can help you make smarter, steadier moves.
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