5 Ways To Prepare Your Finances
5 Ways To Prepare Your Finances
G. Brian Davis Thu, June 12, 2025 GOBankingRates
The Trump Administration Says Tariffs Aren’t Going Away: 5 Ways To Prepare Your Finances
In an appearance on Fox News, Commerce Secretary Howard Lutnick made the Trump Administration’s position clear: “Rest assured, tariffs are not going away.”
The Administration has signaled that they will not extend the current 90-day pause on many tariffs. So how should American consumers prepare for a jolt in prices?
Slash Spending Now
Don’t get caught flat-footed by price jumps. Start cutting back on spending now, to soften the impact when the worst of it hits.
“People often wait too long to pivot when it comes to their finances,” said Charles Hoff, financial education counselor at DFCU Financial. “Plan for the worst scenario now, which means cutting expenses to a level where you are living ‘well below your means’ so you can absorb increasing costs.”
Deepen Your Emergency Fund
As you rein in your spending, use the surplus to pad your emergency fund.
Robert Gabriel, financial specialist with healthcare platform Vosita, explained that most financial experts recommend emergency savings that can cover three-to-six months of living expenses. “With the volatility tariffs will create in the economy and prices, shoot for the upper part of that range. A well-cushioned emergency fund serves as a shock absorber against price hikes or possible income disruptions.”
Don’t just leave that cash losing money in an account earning no or low interest, either. Find a high-interest savings account that can hopefully keep pace with inflation or at least reduce the loss in purchasing power.
TO READ MORE: https://news.yahoo.com/news/finance/news/trump-administration-says-tariffs-aren-100245267.html