Plan It, Don’t Panic: Your Finances & The New Economy

A couple of years ago, I said: "Plan It, Don’t Panic." Well, those words are back in the chat. Guess I was just early or was the collective just late? Either way, I took a couple of weeks from writing my newsletter to analyze what’s going on and sit with it. With the new administration and talks of tariffs that could raise prices on goods and services, many of you are wondering how to financially survive—and thrive—through these changes. I get it, it might get a bit more unprecedented for us.

Temperature Check: It’s easy to feel overwhelmed, but the key is preparation, not panic. Below, I’m breaking down four key strategies to help you navigate this new chapter while staying on track with your financial goals.

The other day I posted about how I noticed that more folks were pre-buying things that could be tariff-adjacent (dunno if I made up a word, but it's true). The reason why I call it tariff-adjacent is that even if some things are grown and brought here, we know that the feelings/sentiment of import is going to sprinkle into all areas of our day-to-day expenses. Let’s keep it honest, even when the reports say inflation is easing, your expenses still feel it.

The Current Financial Group Chat

While scrolling through social media and articles, I’ve noticed that our money algorithm is shifting from feel-good to fear. We “feel what’s going to happen” like that preview on Netflix, but we don’t really know the movie until we are 35 minutes in, wanting to turn it off, but can’t – for 4 years or more. No matter how you vote or vocalize, the concepts are about to become context regarding currency. Here are some major call points from the collective:

Rising Costs: Talks of new tariffs could lead to increased prices on essentials like food, clothing, and appliances. This could reignite financial strain even as inflation seems to be easing. Even though I don’t see the ease really happening, that’s what the people say. Folks are already having issues, and adding tariffs and stagflation into the chat is going to make the American Dream even more of a mirage.

Retirement Concerns: Searches for "401(k) recession-proofing" show growing worries about retirement savings in a volatile market. Yes, there was a stock market pop when most of us found ourselves awake at 3 AM on the day after the election, many are wondering if the stagflation of the incoming economy will impact their retirement accounts. I’ve been getting calls.

Spending Fears: Panic-buying and fear-driven financial decisions are creeping back, but they could derail long-term goals if unchecked. I’ve been noticing the same tactic that folks did with toilet paper happening with TVs. Some are doom spending, I get the doom. But we have to become more strategic around preparing for the layers of unprecedented we could see. Creating a plan around your preparation is key.

Step 1: Review Where You Are Financially

One of my favorite sayings is “Audit Your Wallet”. We are in Q4, so while I told you to do this - it has a bit more context into it now. Knowing how your money is now will allow you to pace it as much as possible when the waves get even more choppy. Before reacting to the news, take a moment to assess your financial health. This is your starting point:

• Budget Check: Is your spending aligned with your income and financial priorities? Review where your money is going and make sure it reflects your goals. Does your current budget style match what’s going on now and what could be going on later. Do you even have a skeleton budget to handle life in case things happen?
• Emergency Savings: Ideally, you have 3–6 months of expenses saved. If not, create a plan to build or rebuild this fund. Like I love to say, focus on saving one month of expenses and then creating a pace that fits your budget - it will allow you to live and save at the same time. Depending on your income, expenses - those 6 months of expenses could take a while.
• Debt Load: Are high-interest debts like credit cards or personal loans weighing you down? Prioritize paying these off. We already know that credit card debt is over $1.17T for consumers, so how does that look for you? What’s the APR? Can you negotiate it down to help buffer your debt? I talked about the influx of 0% APR credit cards folks have been seeing/using - some tips to use if it works for you.
• Investment Health: Is your portfolio balanced and diversified to withstand market changes? If you’re unsure, this is a good time to seek advice or rebalance. Don’t just go buying things because the markets look “HOT”, things could very much go “NOT”, but do you know the basics around investing and rebalancing when you need to.

Celebrate Progress: Don’t just focus on what’s missing—take time to recognize the areas where you’ve made strides, whether that’s increasing savings, paying off debt, or sticking to a budget. Celebrate the small while you scale during this unprecedented time. Also give yourself grace.

Step 2: Set Realistic Improvement Goals

Even with the world potentially going into the next season of Black Mirror, that doesn’t mean that your financial goals have to “Go”. Next, identify the areas where you want to improve and map out manageable steps:

• Adjust Spending: Shift focus from discretionary spending ("wants") to essentials ("needs"). Finding the balance between the two is what’s going to help you so much. You can have the experience but not hurt your expenses. Just as we are getting close to Black Friday, what you “save”, save those savings into your HYSA for the next holiday season or other financial goals. Start reallocating funds toward potential price increases.
• Boost Emergency Savings: Commit to setting aside a small, consistent amount each month for a "Price Shock" Fund (more on that below). Saving some towards the panic will give you a buffer to handle when things shift. I do believe that things are going to happen quickly.
• Revisit Debt Strategy: Use methods like the debt snowball or avalanche to prioritize repayment. Even small extra payments help reduce interest costs over time. When you get the interest down, look to see if you can buy down (the minimum and more) your balance.

Reassess Major Goals: Whether it’s buying a home, early retirement, or saving for a large purchase, keep these goals alive. Adjust timelines if needed, but don’t abandon them out of fear. Configure how to still obtain them when it seems like there will be obstacles.

Step 3: Build A "Price Shock" Fund

I had to add this to this newsletter. We already are seeing price shock even when things are easing, but with tariffs and other things - we could see even more of a crunch. Create a dedicated fund (HYSA) to prepare for potential price hikes on goods impacted by tariffs or economic shifts. Here’s how:

1. Identify items that might be affected—appliances, durable goods, or imported essentials.
2. Allocate a portion of your savings to this fund each month. That extra $5/$10/$50 could help when your budget can’t.
3. Use this fund strategically to manage higher costs without dipping into emergency savings or going into debt. I do expect even more folks to lean on BNPL and credit card debt due to what’s to come.

This fund is about readiness, not panic-buying. Having it in place can give you peace of mind and financial flexibility.

Step 4: Stay Prepared - Without Panic

Preparation is key, but it’s important to keep your emotions in check:

• Secure Key Documents: Digitize and organize your financial records—tax returns, insurance policies, retirement accounts, birth certificates, car titles, mortgage/rental agreements, and update those passports, and estate documents—for easy access.
• Plan Major Purchases Strategically: If you’ve been considering buying a car, home appliance, or other high-cost items, research how potential tariffs might affect prices and plan accordingly.
• Investing Wisdom: Markets fluctuate, but time in the market often beats timing the market. Stay calm, stick to your long-term strategy, and avoid making emotional investment decisions. Stash your cash into your investing base accounts for buying opportunities.
• Find Your Grounding: Start looking for certain things to give you peace during the unprecendent. This could be a hobby, reading, etc. Find your peace at different price points and lean into them. Making a list is going to help you leverage during the lean.

The Bigger Picture: Don’t Stop Dreaming

Economic shifts are inevitable (especially now), but they don’t have to define your financial future. This is your reminder: Don’t stop dreaming. Instead, adjust your plans as needed and keep striving toward your goals.

Your Next Steps

1. Schedule a budget and cash flow review to align your spending with your priorities.
2. Start your "Price Shock" Fund with an initial deposit or automatic savings plan. A HYSA would be amazing for this!
3. Make a list of your financial goals and identify one action step for each. Review where you currently are before making resolutions.
4. Commit to revisiting your financial plan every quarter/month to adapt to changes. Reviste your budget monthly - the months will not look the same as things shift.

Fear might be loud, but preparation speaks louder. Let’s focus on building resilience and staying ready for whatever comes next. I want this shift as painful as it could be to be a gift for your future. We’ll be fine.

What Else I'm Talking About:

Latest On The Blog: Another Savings Bucket: Understanding Certificates Of Deposit (CDs) – A Beginner’s Guide, How To Bounce Back: Rebuilding Your Retirement After Hardship Withdrawals, More Than Contributions: Structuring Your IRA For Growth.

Stay Funded -

Nadia