As Economic Uncertainty Builds, Dave Ramsey Says Focus on These 3 Financial Moves

"Concerns about a potential recession have resurfaced as consumers navigate higher interest rates, elevated living costs, and ongoing economic uncertainty. While the U.S. economy continues to show resilience in areas like employment, many households remain cautious about spending. Higher borrowing costs and persistent inflation have made it more expensive to carry credit card balances, auto loans, and other forms of debt."

"A budget gives you clarity about where your money is going each month. With credit card interest rates still elevated by historical standards, keeping spending in check matters more than ever. Start by reviewing recent bank and credit card statements. Identify fixed expenses such as rent, mortgage, insurance, and utilities, then compare those costs to your monthly income. From there, look for discretionary expenses that can be trimmed if needed."

"Economic slowdowns can lead to hiring freezes or job cuts, even if the broader economy remains stable. That is why many financial planners recommend keeping three to six months of essential expenses in an emergency fund. If that goal feels overwhelming, start smaller. Even building a one-month cushion can reduce financial stress. Automating small weekly or monthly transfers into a high-yield savings account can help build momentum over time."

Rising interest rates, elevated living costs, and ongoing economic uncertainty have increased the cost of carrying consumer debt and made many households cautious about spending despite continued employment resilience. Higher borrowing costs raise credit card, auto loan, and other debt expenses, pressuring budgets. Creating a budget provides clarity on fixed and discretionary expenses and enables targeted spending reductions. Strengthening an emergency fund to cover three to six months of essentials—or starting with a one-month cushion—reduces vulnerability to job disruption. Automating savings and adding freelance or gig income can accelerate fund building. Maintaining calm and a long-term perspective helps avoid emotional financial decisions during volatility.

Read at 24/7 Wall St.