How to Keep Your Cool During Uncertain Times

The past few years have been a roller coaster of highs and lows in both the economy and the stock market. A recent survey by the New York Federal Reserve found that although American households are optimistic about their prospects in the labor market, they’ve become more uncertain about inflation and less confident that stock prices will be higher in the next year.^*

Whether during periods of stability or instability, a financial plan can be helpful no matter how much money you earn because it will help you see how everyday money decisions can help you meet near-term goals, long-term goals and anything unexpected that pops up along the way.

Here are three ways you can bolster your finances:

Focus on lowering expenses. You don’t need to take drastic measures. One simple budget hack: Brew your daily coffee at home instead of going to your favorite coffee shop. If you’re spending around $4 a day, that adds up to $28 a week and $1,456 a year. 

Look for ways to earn extra money this summer. Summertime is synonymous with vacations, not necessarily more work. But this season can be a good opportunity to earn some extra cash that you can put toward your financial goals. Get creative—maybe you’re skilled in a hobby (say, swimming or playing the guitar) that you could teach others. Or perhaps you have a lot of old stuff hanging around your home that you could sell at a garage sale.

Increase your retirement contributions. It can be tempting to focus on your short-term money needs, but feeling more confident about your future is another strategy when everything else feels uncertain. Consider increasing the amount you’re contributing to your retirement plan or IRA, with the goal of contributing up to the maximum allowable for the year.

^*Federal Reserve Bank of New York, “Survey of Consumer Expectations,” April 2022.