Tori Dunlap on Planning for a Recession – The Motley Fool | Vette Leader

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Fear of an economic downturn? Tori Dunlap can help.


Important points

  • Tori Dunaps financial feminist Podcast is a great resource for money tips and tricks.
  • Many experts agree that a recession is imminent, likely later this year or early next.
  • By taking the time to create a plan and become more in control of your money, you can weather a financial storm.

Tori Dunlap is a financial influencer, blogger and podcaster. She focuses on teaching women how to manage their finances and be better with money. In a recent episode of her podcast financial feminist, Dunlap offered advice to help her listeners prepare and plan for the recession some financial pundits agree is coming. Dunlap agrees that a recession is on the horizon, but her expert tips could help you break the gloom of the financial news cycle and take the necessary steps toward peace of mind despite money worries and worries.

Stay up to date… within reason

If you’re stressed out by the news these days, you’re definitely not alone. Dunlap notes that it’s better for your mental health if you moderate the media you record, noting that news organizations and journalists try to elicit an emotional response from you. If you can step back from the news and take a deep breath, you may be able to calm some of your fears of an impending recession and create a concrete plan for navigating an economic downturn anytime soon.

Allay your stock market fears

Dunlap is a firm believer in long-term investing, and being a successful long-term investor consists of recognizing that the market will rise and fall. As Dunlap said on her show, “There will be all-time highs and all-time lows. And that’s the only thing that’s predictable.” The most important thing to remember about your investment holdings is that the stock market grows over time. The average investment return for the entire stock market is nearly 10%. And as Dunlap notes, if you’re investing for your retirement and it’s decades away, you won’t be needing that money anytime soon. If you see losses in your portfolio, don’t rush to sell and lock in those losses. Weather the storms until retirement, and “You won’t lose money,” according to Dunlap and 125 years of stock market data.

Work on that emergency fund

If you’ve heard it once, you’ve heard it a million times: Having an emergency fund is important for your financial security. Dunlap believes in emergency funds as much as many other financial experts. Be sure to have at least three months of spending stashed in your high-yield savings account in case you get laid off or have another money problem. And Dunlap points out that as inflation ravages all of our wallets, you should reassess your monthly expenses to ensure you have enough money in that account. Has your rent gone up this year? How about your utilities? Add more money.

Review your spending and adjust your budget

Another way to prepare for a coming recession is to go through your budget and spending with a fine-toothed comb. Dunlap notes that it’s easy to forget recurring costs that you pay even though you don’t use the streaming service, gym membership, or whatever else you don’t actually use. If you are not using it, now is the time to cancel it. And if you live without a budget, now is also the perfect time to create a spreadsheet or even try a budgeting app. Knowing where your money goes each month helps give you peace of mind.

Keep more of your money (and make more, too)

Dunlap also recommends taking some time to negotiate your bills. You may be spending more on auto insurance than you need. Ask your insurer if there are any additional discounts you may be eligible for. Dunlap states that negotiating her bills saved her about $1,200 a year. While reducing your expenses, you may also want to diversify your income by adding a side job. Some salary flexibility will also help you sleep at night, knowing that even if your full-time salary is cut or you lose your job altogether, you have alternate income to fall back on.

There’s a lot of news about the upcoming recession, and it can be difficult to analyze the steps you should be taking to plan for it. Financial experts like Tori Dunlap can offer reassurance and actionable advice to Americans worried about what’s next.

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