In today's challenging economic climate, safeguarding your financial well-being is paramount. Drawing from experiences during past economic downturns, here are practical strategies to help you and your family navigate the current recession.
We are officially in a recession. Are YOU ready?
The United States economy is officially in a trade war with China, Canada, and Mexico. If you haven't taken Model U.N. in junior high, let me tell you—this ain't good for your financial situation.
What does a recession mean?
Technically, a recession is two quarters of contracted economic conditions. From my experience and analysis, we have already been in two quarters of economic insecurity.
When I lived in San Diego in 2024 and was trying to sell my home, the market lagged. What should have taken a few weeks took six months. Consumer confidence was low due to the upcoming election, and the cost of capital (interest rates for loans) was cautiously high because of the potential risk that people would default on their loans (miss mortgage payments) due to future job insecurity. The rumors of mass layoffs promised in Project 2025 were a potential reality for credit defaults.
The American economy is what I call a hand-in-hand economy (consumer spending is fueled by employment). If people are unemployed, they tighten their belts and spend less. They buy fewer things. In response manufacturing slows down. This perpetuates the unemployment cycle (increasing layoffs to meet reduced demand, as labor is the most expensive expense on a balance sheet).
Trump’s violence towards Ukraine and the imposition of 25% tariffs on our trading partners in Canada, Mexico, and China have made things worse for everyone worldwide. They're not taking it lying down—they've met this economic aggression with retaliatory tariffs, primarily targeting red states that support Trump, his violent authoritarian ideologies, and all Republican representatives and senators who stand behind him.
Since the inauguration, we've seen an 11% contraction in the stock market. Growth rates were at, on average, 8-9% under Biden, projected to be under 4% under Trump, but tumbled to under 2% upon the announcement of tariffs. The DOW dropped more than 1,000 points in one day. It dropped nearly 2,000 points in one month. This shocking, but expected, drop signals the beginning of a recession and investors are running to safer investment vehicles like bonds.
Fun fact: 10 out of the last 11 recessions occurred under Republican leadership. According to the National Bureau of Economic Research (NBER), which identifies U.S. recessions, 10 of the 11 recessions between 1953 and 2020 began under Republican presidents.
The question is—how can you overcome this recession?
How can you and your family ensure that you don’t have to work harder because of someone else’s destructive choices?
Let me share some lessons I’ve learned from coaching families and professionals during the 2008 U.S. Great Recession and the 2011 European Economic Crisis:
Do business with people who care about you. During recessions, many fly-by-night businesses pop up, and people take jobs just to make a quick buck. These people try to fast-track relationships, rush the rapport-building process, and pressure you to sign on the dotted line immediately. Anyone who rushes you into a business transaction is trying to rip you off. Take things slow, observe their behavior, and do business with people who genuinely look out for your best interests.
Do business with people who share your values. This recession, economic trade war, and societal crisis—where minorities, marginalized groups, and women are targeted—prove that it's time to only do business with people who believe in your human rights and liberty. If someone doesn’t respect your humanity and only sees you as a source of money, walk away. Life is too short to be used by people who are only nice to you when they have something to gain.
Support single-mother businesses, minority businesses, and the LGBTQIA+ economy. Even small purchases or sharing their businesses with your community can make a huge difference. I allocate a portion of my nonprofit donation budget to these businesses, and the effect is astronomical. One single-mother business owner told me, “If it weren’t for you coming in and supporting me each week, I don’t know what I would do.” Not only are you making a personal difference, but you’re also strengthening a business in your community.
Reduce your liabilities. This means paying down and paying off any debt you have. Focus on credit cards, car loans, home loans, and student loans—anything tied to an interest rate. Why? Because as the market contracts, lenders will trust you less. Interest rates will rise, with some adjustable rates hitting 32%. Many credit cards are already in the high 20% range, with the average at 22%. Focus on the feeling of being debt-free. I talk about this in my money psychology book, The Money Formula. I’m not linking to it because I’m not selling it as you read this, as a matter of principle, but I want you to know: you can change how you think and feel about money.
Look for ways to increase your cash flow. I know this is difficult if you have a job, are a primary caregiver, and have many expenses—I’ve been there. But it might mean temporarily renting out a room, selling things you own but don’t use, or finding other creative ways to bring in extra cash. Open yourself mentally to receive more income from all sources.
Look for ways to do LESS. Your time and energy are precious. Cut out anything that doesn’t improve your health, well-being, or financial security. Anything that drains you, stresses you out, or makes you tired needs to go. Let go of relationships that wear you down. Guard your time and peace.
Let your community support YOU. Be brave enough to be vulnerable and allow people to show up for you in whatever way they can. Don’t isolate yourself. During the 2008 recession, my strongest memories are of the army of people who helped me—got me jobs, gave me business, collaborated with me, and invited me into their homes and offices.
Learn and overcome anything that makes you feel vulnerable. If you feel weak in any area, take this as an opportunity to strengthen yourself. Poor at budgeting? Learn. Struggle with setting boundaries? Work on it. Need to improve your income and career prospects? Now’s the time. This is your moment to overcome any block standing in your way.
Save as much as you can. As hard as it may be, learn to pay yourself first. Automate your savings plan—even $5 a day compounded can set you up for success. Saving is a habit. Start small and make it a priority.
Develop an investor mentality. Ask yourself: Does this purchase increase my productivity? Reduce my stress? Help me make more money? Make things easier for me and my family? Get used to evaluating every financial decision carefully. Let your money work for you.
Focus on your mental and physical health. Economic uncertainty increases stress, depression, and anxiety. Talk to your doctors, care providers, and support networks. Now is the time to prioritize your well-being.
Enjoy your family and friends as much as possible. Relationships matter. Make the most of them and savor every moment. Time flies. I remember when Franck and I had no money, lots of debt, and no jobs—his family was there for us. We made small parties and celebrated every holiday, making it as fun as possible. Eventually, many of his elders passed away, but we never regretted those moments. Those memories override any financial struggles. We felt so rich in love—and that carried us through.
Empowering Affirmations
I am resilient and adaptable.
Financial stability is within my reach.
I make choices that secure my future.
Challenges are opportunities for growth.
I attract prosperity and abundance.
Which strategy do you believe is most crucial during a recession?
Reducing debt
Increasing income streams
Building supportive community
Prioritizing health and well-being
Your turn!
What steps have you taken to safeguard your financial well-being during economic downturns?
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About The Author: Leslie Juvin-Acker, J.D.
Leslie Juvin-Acker is a distinguished author and former celebrity life coach with over 14 years of experience. She holds a J.D. from Northwestern California University School of Law and is fluent in French. Leslie is also a certified Global Career Development Facilitator and an expert in Emotional Intelligence. Her clientele includes leaders from companies like Meta, Microsoft, and Adidas. Through her books and coaching, Leslie empowers individuals to overcome limitations and lead fulfilling lives.
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