Dave Riley

Photo by Carl Schultz

Money management can be stressful, especially when the stability of the economy is constantly called into question.

Job insecurity, inflation and market downturns can make financial planning feel overwhelming. However, studies show that individuals who create a financial plan are more likely to feel confident and secure about their future. According to Charles Schwab’s 2024 Modern Wealth Survey, 96% of individuals with a written financial plan feel confident about reaching their financial goals, and 76% of them report being more in control of their finances. With a clear plan and good habits, you can stay in control of your finances and adapt to changes.

Before making any money decisions, it’s important to take a step back and review your financial situation. Look at your income, spending, debt and savings. Understanding where you stand helps you make smart choices and set up a plan that focuses on stability and security. Here are eight strategies:

Build an emergency fund

One of the most important steps in any financial plan is building an emergency fund. Aim to save three to six months’ worth of living expenses in an account that you can access easily. If you haven’t started yet, begin with small amounts from each paycheck. Automating your savings, cutting back on unnecessary expenses and finding extra income sources can help you build a strong safety net.

Prioritize essential expenses

When money is tight, focus on paying for needs, not wants. Top priorities should be housing, utilities, food and health care. Try to cut back on extras like dining out, streaming services, and luxury items. Being smart about spending can help keep finances on trach during difficult times.

Create and maintain a budget

A budget is a key part of any financial plan. Track all income and expenses with a budgeting app or a simple spreadsheet. Set spending limits and review the budget regularly to adjust. A flexible budget allows for changes without stress.

Manage debt wisely

Focus on paying off high-interest debt first, like credit cards and personal loans. One option for those particularly struggling is to talk to each lender about adjusting the payment plan. Avoid taking on new debt unless absolutely necessary. Reducing debt allows for more financial freedom in the long run.

Diversify income sources

Another way to strengthen finances is by having multiple sources of income. Depending on one paycheck can be risky, so look for other ways to make money, like freelancing, consulting or online jobs. Extra income can provide a cushion if any unexpected changes occur, like pay cuts or layoffs.

Invest with a strategy

Investing can feel uncertain when markets are unstable, but having a strategy is important. Avoid panic-selling and stick to a long-term investment plan. A diverse portfolio is key to managing risk. For any uncertainty or second-guessing, consider talking to a financial adviser.

Stay informed without panic

While being informed about the economy is important, too much negative news can be overwhelming. Focus on facts and practical steps instead of getting caught up in fear-based predictions. Keeping a level-headed approach will help you make better financial decisions.

Seek financial assistance when needed

In times of financial trouble, look for available resources that can help. Government programs, unemployment benefits, loan relief and local community services can provide temporary support while finding solid ground.

It’s important to remember that economic conditions will always change. Staying positive and flexible is just as important as having a solid financial plan. During uncertain times, managing money takes careful planning and discipline — prioritize essential expenses, diversify income and create a plan for long-term security.

Editor’s note: Dave Riley is the head of wealth management at Arcwood, a Phoenix-based financial firm specializing in individual retirement planning, personal finance strategies, employee health benefits, 401(k) group retirement plans and human resources. Please send your comments to AzOpinions@iniusa.org. We are committed to publishing a wide variety of reader opinions, as long as they meet our Civility Guidelines.