3 Money Habits That Can Help You Stay Ahead — Even If a Recession Hits
Written by
Gabrielle Olya
Edited by
Molly Sullivan
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Although most experts believe we’ll be able to steer clear of a recession this year, many Americans are still worried about the possibility of an economic downturn. A recent survey conducted by Talker Research and Affirm found that 58% of Americans believe a recession is still inevitable and 77% have changed how they manage their finances as a result of ongoing economic conditions.
If you’re feeling anxious about what’s ahead, you’re not alone — and you’re not powerless. Here are three practical, expert-backed strategies to help you recession-proof your finances and feel more in control, no matter what the economy does next.
Understand the Fine Print Before You Borrow
There’s no shortage of payment options to use when making a purchase, from paying with cash to using a credit card or a buy now, pay later service. If you’re opting for one of the latter two options, make sure you know exactly how future payments will work.
“It’s smart to choose payment options that deliver clarity — like fixed terms, no hidden fees and no compounding interest,” said Vishal Kapoor, SVP of product at Affirm.
According to the survey, 41% of Americans say predictable payments are especially important, and nearly half (49%) seek out options with no surprise fees.
Choosing transparent, fixed payment plans makes it easier to manage your money, avoid surprise costs and stay on track financially.
Limit Financial Anxiety by Avoiding Economic Noise
It’s easy to get into a panic state about the economy when you’re inundated with social media and news sources telling you a recession is on the way.
“Stay informed … but not overwhelmed,” Kapoor said. “Understanding the economy can help you make smarter decisions, but too much noise can lead to unhelpful worrying.”
Instead of doom-scrolling, stick to trusted sources like the Federal Reserve and other reputable news outlets, and focus on what you can control rather than what you can’t.
Build a Flexible Budget and Plan for the Unexpected
Make moves now that will set you up for success in the future — no matter what that looks like. This includes making moves like saving up an emergency fund.
“Planning a few ‘if-then’ scenarios can make your finances more resilient,” Kapoor said. “Make sure your payments align with your cash flow and that you have some flexibility built in.”
This can mean adjusting bill due dates to match your pay schedule, automating a portion of your income into savings and keeping cash available for emergencies.
Many Americans are already making these moves or planning to make them. According to the survey, 50% want to keep cash available for unexpected expenses or financial uncertainty, 41% want to manage their budget with fixed, predictable payments and 36% are thinking more long-term than ever about their finances.
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