I’m a Millennial: 4 Ways I’m Cutting Back During Tariff Uncertainty
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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With prices rising unpredictably due to shifting tariffs and trade tensions, many millennial workers are tightening their budgets as they feel the pinch.
In this uncertain economic climate, one millennial shared the real-life adjustments she and her husband are making to stay financially afloat, from cutting nonessentials to finding smarter ways to stretch every dollar.
Here’s how they’re cutting back and responding to a time of economic uncertainty.
Replacing What Could Be Affected
While some people have been surprised by President Donald Trump’s tariffs, Ana M., age 34, a content marketer and ghostwriter based in Connecticut, said, “As soon as Trump was elected, we knew that tariffs were coming.”
As a result, she said she and her husband took stock of everything that they’d need to replace soon that would likely be impacted and preemptively replaced them, including the battery in her husband’s car, which was on its last legs, and her phone, which has a broken speaker.
Aside from that, they began cutting down on spending immediately, even before Trump was in office knowing that tariffs would be coming and “potentially a contributing factor to a recession,” she said.
Choosing Where To Cut Back
Ana and her husband are “very concerned” about a possible recession and so are prioritizing liquid savings for the time being.
“My job is particularly high risk and has already been impacted by multiple economic conditions, so we want to prepare for that,” she said. They’re making strategic cuts where they can, such as reducing a live TV Hulu subscription ($120 per month) to a basic plan that is just $29 per month.
“We’ve also stopped pretty much all nonessential spending and splurge purchases, outside of local experiences. Instead of getting gifts this year for our birthdays, we went to a hockey game,” she said.
They’ve also begun to feel the pinch of increased prices on many of the items they consider “essentials” such as home goods and cleaning supplies. While they are continuing to buy the products they prefer, even at higher prices, they have put off some larger purchases such as gutter guards and a home generator, which were impacted by tariffs.
A Longer Mortgage Timeline
Another casualty of this time of high-tariff uncertainty is that it’s drawing out the timeline in which she and her husband were originally going to pay off their mortgage. Instead of making extra big payments to speed that process along in 15 years, now, she said, “We’re holding onto those funds so we have extra cash on hand in case my business struggles in the near future.”
A Change in Investments
The tariffs are also changing how they invest. They’reputting more money into accounts that they have easy access to, including high-yield savings, CDs and Roth retirement accounts, instead of the SEP IRA she typically uses.
“I’m taking a hands off approach for the time being, as I’ve got the majority of my portfolio currently in relatively ‘safe’ funds like the S&P 500,” she said.
She’s seen a significant drop in her portfolio value, but since she has a long way to retirement, her strategy is to leave it be and let it recover.
The Millennial Mindset
Ana feels that her unique experience as a millennial has helped her prepare for bumpy economic times. She started college during the Great Recession of 2007-2009 and graduated in 2012 to find that many local businesses in her area had shuttered. After struggling to find a good job, she started her own business.
Though that experience taught her to be more “risk averse,” a skill she and her husband also used during the COVID-19 pandemic, she feels more uncertain now about the economy than she ever has.
“The tariffs and other economic conditions are more concerning to me this time around, because they feel much more man-made and it does not feel like we have a good faith effort from the administration to resolve the issues.”
She’s concerned that tariffs and their economic impact will be dragged out for an extended period of time.
Advice to Other Millennials
Ana believes that the best thing millennials can do right now is prepare for increased costs and potential difficulties with unemployment.
“That emergency fund is never more important than when you may struggle to get a new job if you lose your current one, and as prices are increasing from tariffs and inflation, I think it’s smart to have more saved than you might think you need.”
Like many people, Ana and her husband are preparing for the worst and hoping for the best.
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