"In a December 31, 2025 blog post titled '3 Money Moves to Kick-Off 2026,' Suze Orman urged readers to boost emergency savings to at least eight months of living expenses. She framed this with stark clarity: "There are signs the economy may be losing steam. That's not a prediction. It's just a reminder that recessions or climbing unemployment don't tell us six months in advance that they are on the way. We need to be prepared.""
"Economic data supports her caution. The labor market has softened noticeably, with unemployment rising over the past year while Americans simultaneously reduced their savings cushion by nearly a third. This combination creates the exact vulnerability Orman warns against-households face growing job insecurity precisely when they've depleted the financial reserves needed to weather potential layoffs. Consumer sentiment reflects genuine anxiety about job security, having plunged to near-recessionary levels as jobless claims spiked sharply in late 2025."
Boost emergency savings to at least eight months of living expenses to prepare for possible economic softening. Labor market has softened, with unemployment rising over the past year while households reduced savings by nearly a third. Consumer sentiment plunged to near-recessionary levels as jobless claims spiked sharply in late 2025. Households face growing job insecurity precisely when financial reserves have been depleted, increasing vulnerability to layoffs. An eight-month cushion exceeds the traditional three-to-six-month guideline, reflecting increased labor-market volatility and potentially longer search times to secure comparable work. The eight-month target can be financially burdensome for many households, requiring practical planning.
Read at 24/7 Wall St.
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