There are a number alarming headlines flooding the news these days.
President Donald Trump’s on-again off-again tariff announcements have sent the stock market on a rollercoaster and renewed fears of a coming recession among consumers and businesses alike.
It’s understandable if your immediate response is to panic. “There’s no question that today’s headlines are coming at us very fast and furious and can also be very scary,” says Mary Clements Evans, a certified financial planner and accredited behavioral financial professional.
“I think that we believe if we worry about something enough, we can protect ourselves from bad things happening,” she says. “Worrying doesn’t help, but being prepared does.”
It’s difficult to plan for the unknown, but worrying won’t guarantee a certain outcome, either negative or positive. Instead, Clements Evans offers three pieces of advice you can use to feel more confident to navigate this period of economic uncertainty.
1. Focus on what you can control
First, focus on what you can control, Clements Evans says. You can’t stop a recession from coming, but you can control how prepared you are by taking steps such as boosting your emergency savings and revisiting your budget.
In terms of emergency savings, “if you’re working and not spending from your investments, prepare for a layoff,” she says. “Have at least six months’ worth of financial needs in cash. More, if you’re worried it will be difficult to find another job.”
Similarly, self-made millionaire and best-selling author Ramit Sethi recommends aiming to save enough to cover 12 months’ worth of expenses.
It may be difficult to stash six months to a year’s worth of expenses, especially if you’re already struggling to save. But every little bit helps, so it’s wise to put away whatever you can.
2. Ignore the headlines when making money moves
While you can decide when to buy and sell stocks, once your money’s in the market, you have very little control over what happens to it. That can be stressful, but pulling your money out because you’re scared or frustrated by market volatility probably isn’t the solution you need, Clements Evans says.
“People don’t make money mistakes because they’re dumb,” she says. “They make mistakes because they’re emotional.”
Sethi agrees. Often, investors try to mimic what they think wealthy people are doing based on headlines that instill fear and the feeling that rich people have secret market knowledge others don’t, he says.
He advises against making any drastic money moves right now, no matter how bad the headlines make you feel, unless you’re already facing a financial emergency.
“One of the most important things in a time like this is to slow down and be methodical,” Sethi says.
3. ‘Take a humor break’
Since worrying doesn’t help, Clements Evans encourages you to take a break from reading the news and find reasons to smile.
“Take a humor break,” she says. “Go listen to something funny.”
With so much news pouring in, it can be tempting not to look away in fear of missing something. But if you’ve already taken the steps you can to prepare for a personal downturn, you’re allowed to think about other things for as long as you need to de-stress, Clements Evans says.
“I’ve always believed in the power of laughter,” she says. “This doesn’t mean you’re ignoring bad events or feelings. You’re not being uncaring or irresponsible. You’re just taking a break from it.”
