Financial Advisors’ Top 4 Tips for Middle-Class Families To Survive the Trump Economy
Written by
Kerra Bolton
Edited by
Rebekah Evans
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Middle-class families are feeling the brunt of the Trump economy, where rising costs, market swings and heavier debt loads are straining budgets.
Financial advisors said that survival requires more than trimming coffee runs. It’s about making bold, disciplined choices that protect households from lasting damage. By shoring up cash, resisting emotional money moves and cutting the most punishing debt, families can regain a sense of control and prepare for whatever comes next.
Here are the top five tips for middle-class families to survive the Trump economy.
Keep Savings Liquid in the Trump Economy
Market volatility tied to Trump’s policies has made it harder for middle-class families to know where to keep savings. Financial advisors said middle-class families should focus on where they store their emergency savings, since Trump-era volatility makes risky assets less reliable.
“You should be keeping your emergency fund in assets that are not subject to market swings, namely cash or cash equivalents,” said Ben Waterman, CEO of Strabo, a global consumer wealth management platform.
“High yield savings accounts or bonds with short duration are good, and stocks are best avoided unless you plan to keep the money in there for the long-term,” Waterman explained.
Pay Down High-Interest Debt First
With interest rates climbing under Trump’s policies, financial planners said expensive debt can spiral quickly if left unchecked.
“Prioritize paying down the highest rate debt and where you can, consolidate the rest into a longer-term repayment plan with a lower rate,” Waterman said. “Paying down debt today locks in future flexibility, freeing up cash flow that can later be redirected to savings or investments when conditions stabilize.”
Stay Nimble
Advisors said the Trump economy requires more than one-off moves, such as holding cash or paying down debt, instead advocating for a mindset of flexibility that combines both strategies.
“This combination lowers monthly obligations and ensures you can pivot quickly if job markets tighten or unexpected expenses arise,” said Christopher Stroup, founder and president of Silicon Beach Financial. “It’s important to remember that stability comes from control, not austerity.”
Shield Your Paycheck
In the Trump economy, federal budget cuts are straining middle-class families who rely on government contracts for steady work. At the same time, tariffs on imported goods have increased pressure on manufacturing jobs, leaving household paychecks more vulnerable to sudden shocks.
“Protect both your income and assets. Build a larger-than-usual cash reserve to handlepotential layoffs, diversify investments to reduce sector-specific exposure and consider supplemental income streams to hedge against instability,” Stroup said.
“Updating your skills and strengthening your professional network now can also create a safety net that policy shifts can’t erode,” Stroup added.
Focus on Self-Reliance
According to the Center on Budget and Policy Priorities, Trump-era policies are raising healthcare premiums and cutting worker benefits. In response to this, advisors said surviving in the current economy requires middle-class families to rely less on traditional safety nets and more on their own protections.
“Rethink your safety net by focusing on self-reliance. Middle-class families should increase liquidity to cover at least six months of expenses, review insurance coverage to guard against rising out-of-pocket costs and diversify income sources beyond a single employer,” Stroup said.
“In uncertain times, families with flexible cash flow and layered protections are best positioned to stay ahead,” he added.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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