Surviving the Trump economy just got a lot trickier.

The stock market is tanking, with the Dow Jones Industrial Average, the Nasdaq, and the S&P 500 Index all posting their worst declines since 2020.

Even if you have no interest in Wall Street, we’re all caught in a global tariff war. Inflation is on the rise again. Interest rates remain stubbornly high, and unemployment is climbing due to massive federal layoffs.

To top it all off, Federal Reserve Chairman Jerome Powell has declared that tariffs will have a larger-than-expected impact, including lower economic growth and permanently higher prices.

Translation: buckle up because we’re heading into a recession. That affects everyone.

The Trump Recession

I understand your anxiety. When your retirement account loses 15% in a month, or your mortgage payment eats up more of your paycheck than ever before, it’s natural to worry.

But here’s what I want you to remember: while we can’t control Donald Trump’s economic policies or the Federal Reserve’s decisions, we absolutely can control our personal financial choices.

As someone who once had $100,000 in credit card debt before turning my financial life around, I’ve learned that economic resilience isn’t just about surviving tough times. It’s about positioning yourself to thrive despite them. That’s what you must keep in mind amid heightened volatility in the Trump economy.

Each economic downturn creates both challenges and opportunities. Your job is to minimize the former and capitalize on the latter.

Here are my 10 recommendations for not just surviving the Trump economy but potentially thriving during these turbulent economic times:

1. Prioritize What Matters

Economic uncertainty has a way of clarifying what’s truly important. Take this opportunity to distinguish between your needs and wants. That $12 daily lunch habit? Maybe it’s time to brown-bag it three days a week. The premium cable package with channels you rarely watch? Consider streaming alternatives that cost a fraction of the price.

I know of people who spend more than $500 monthly on subscription services, including some that they barely use. By cutting back to only those that truly enhance their lives, they can free up money to bolster their emergency fund. Any cash saved would be working for them rather than draining their resources.

Ask yourself: “Does this expense truly align with my values and priorities?” If not, it’s a prime candidate for elimination. This isn’t about deprivation—it’s about intentional spending on what truly matters to you.

2. Create a Plan B

In today’s economy, relying solely on a single income stream is like swimming in the middle of an ocean without a life jacket.

What would happen if you lost your primary income source tomorrow? If that question sends a shiver down your spine, it’s time to develop alternatives.

Your Plan B might include:

• A side hustle that could scale up if needed

• Marketable skills you can leverage for freelance work

• A small business, you build evenings and weekends

• Passive income streams from investments or digital products

Let’s say you know bookkeeping. You might consider starting an online bookkeeping service for small businesses while keeping your corporate accounting job. If layoffs ever hit your company, you would be able to quickly transition your side business to full-time, possibly even increasing your income in the process. The same principle holds true for any side hustle you contemplate doing.

The time to develop alternative income streams is before you need them, not after your primary source dries up.

3. Strengthen Your Network

Your professional and personal connections are among your most valuable assets during economic uncertainty. In fact, they’re a form of social capital that can prove just as valuable as financial capital when times get tough.

Start reconnecting with former colleagues, classmates, and mentors. Join industry groups, attend virtual conferences, and engage meaningfully on professional platforms. Don’t wait until you need something to reach out—build and nurture these relationships consistently.

I’ve seen countless people land new opportunities not through job boards but through their second—or third-degree connections. In fact, studies consistently show that between 60% and 80% of jobs are filled through networking rather than public postings. That’s true now, during weakness in the Trump economy, as well as when the economy is moving along like gangbusters.

Remember: your network isn’t just about finding your next job. It’s about knowledge sharing, emotional support, and discovering opportunities you’d never find on your own.

4. Add Safety Nets During The Trump Economy

Think of safety nets as the financial shock absorbers that can help you weather inevitable economic bumps. In the current climate, I recommend:

• Building your emergency fund to cover 6–12 months of essential expenses

• Securing adequate insurance (health, life, disability, home, auto)

• Creating a “what if” budget that cuts your current spending by 25–30%

• Establishing lines of credit while you still qualify for favorable terms

Many people make the mistake of waiting until a crisis hits to look for financial protection. By then, it’s often too late. The best time to add safety nets is when you don’t think you need them. Remember that wisdom as you strive to shore up your finances in the months and years ahead of the Trump economy.

5. Improve Your Health

This might seem like an odd financial strategy, but consider this: medical debt remains the leading cause of personal bankruptcy in America. Your health is quite literally your wealth.

In unstable economic times, take proactive steps to maintain your physical and mental well-being:

• Don’t skip preventive care visits

• Manage chronic conditions proactively

• Incorporate stress-reduction practices into your daily routine

• Focus on nutrition, sleep, and exercise—often the lowest-cost health interventions with the highest returns

I know it’s tempting to forgo insurance. However, try not to be penny-wise and pound-foolish, not just during the Trump economy, but always.

You don’t want to skip health insurance coverage or lose a job during this economic downturn and then have some health issues—like chronic back pain—flare up due to stress. Without insurance, you might avoid treatment until you literally can’t get out of bed, resulting in emergency surgery that can cost tens of thousands of dollars. By investing in preventive care and stress management, you avoid both physical pain and financial devastation.

6. Find Freebies

Resourcefulness becomes a superpower during economic challenges. Start training yourself to ask: “How can I get this for free or at a steep discount?”

From community events to library resources, from skill exchanges to corporate perks, our society is full of no-cost and low-cost alternatives to many paid services:

• Libraries offer free books, movies, music, and often free access to online learning platforms

• Community colleges provide affordable classes and sometimes free workshops

• Professional associations offer member benefits you may be underutilizing

• Many credit cards and insurance policies include benefits most people never claim

One year, my family saved over $1,000 by using our library’s free access to streaming services, books, and digital magazines instead of paying for individual subscriptions and buying books.

More recently, my husband, Earl, and I have saved a bundle on travel insurance as we visited Panama, Mexico, and six countries in Africa. We were able to decline travel insurance offered by various airlines based on an annual international travel insurance policy we’d already paid for through another provider.

7. Save More

When economic storm clouds gather, increasing your savings rate becomes even more crucial. I recommend automating this process so you don’t have to rely on willpower:

• Increase your 401(k) contribution by 1–2%

• Set up automatic transfers to your emergency fund

• Use apps that round up purchases and save the difference

• Consider taking advantage of Series I Savings Bonds, which are currently paying attractive rates that adjust with inflation.

Even small increases matter. Someone earning $60,000 who increases their savings rate from 10% to 12% will accumulate an additional $86,000 over 20 years, assuming a 7% average return.

The key is to make saving your default rather than something you do “if there’s money left over.” Because, let’s be honest, there rarely is.

8. Reduce Debt

Debt creates financial fragility during economic downturns. While some debt, like an affordable mortgage, can be strategic, high-interest consumer debt drains one’s financial strength and resilience.

Start by listing all your debts with their interest rates. Attack the debt that bothers you the most while making minimum payments on everything else. Once that’s eliminated, move to the next most bothersome obligation. This “attack your pain point” approach helps you stay motivated to stick to your debt payoff plan.

If you’re carrying balances on high-interest credit cards, consider:

• Balance transfer offers (read the fine print carefully)

• Personal loans at lower interest rates to consolidate debt

• Negotiating with creditors for better terms or hardship programs

• Debt relief programs, such as debt management plans or debt settlement, particularly as an alternative to bankruptcy

Remember my own story. I paid off $100,000 in credit card debt in three years while supporting a family, so I know it’s not easy. But believe in yourself, stick with your plan, and you can make progress, too, regardless of your starting point.

9. Manage Risk

Turbulent economic times require thoughtful risk management. This doesn’t mean avoiding all risks; that’s impossible. Instead, try being strategic about which risks you take — especially since the Trump economy is likely to be punctuated by vast amounts of volatility and uncertainty.

For investments, consider:

• Reviewing your asset allocation to ensure it matches your risk tolerance and time horizon

• Diversifying across different asset classes, sectors, and geographic regions

• Dollar-cost averaging into the market rather than trying to time it

• Maintaining adequate insurance to protect against catastrophic risks

Many investors make the mistake of becoming too conservative during downturns, missing the eventual recovery. Others take on excessive risk, trying to recoup losses quickly. Both approaches typically backfire.

Remember Warren Buffett’s advice: “Be fearful when others are greedy, and greedy when others are fearful.” Market volatility often creates buying opportunities for those with cash reserves and the discipline to stick to their long-term plan.

10. Be Opportunistic

I know I’ve issued a lot of financial warnings here. But it’s not going to be all doom and gloom during the Trump economy. Economic chaos and disruption create opportunities for those prepared to seize them. Keep your eyes open for:

• Investments selling at a discount to their intrinsic value

• Real estate opportunities in resilient markets

• Businesses for sale at attractive valuations

• Skill development that positions you for emerging opportunities

During the 2008 recession and the COVID-19 downturn, those who had cash available to invest in quality stocks saw their investments multiply several times over in the subsequent decade. Similarly, those who purchased homes in solid neighborhoods—as Earl and I did during the pandemic—bought during price dips and built substantial equity as markets recovered.

But opportunities aren’t just about investing money. They’re also about investing in yourself. Skills like data analysis, digital marketing, cybersecurity, and healthcare specialties tend to remain in demand even during downturns.

Preparing for Inevitable Cycles

Let me be direct: While the National Bureau of Economic Research (NBER) is the official arbiter of recessions, the signs are clear that we WILL enter a recession soon.

It’s only a matter of when. Trump’s policies are accelerating this trajectory, but economic cycles happen regardless of who occupies the White House. Downturns are inevitable parts of capitalism.

That’s why the strategies I’ve outlined aren’t just for surviving the current uncertainty. They’re principles for building lasting financial resilience over the long run.

In my book Bounce Back: The Ultimate Guide to Financial Resilience, I discuss what I call the “Dreaded Ds”—ten major financial setbacks, including debt, damaged credit, divorce, and job downsizing.

I’ve personally experienced nine of these ten setbacks and emerged stronger. You can, too.

Remember: Economic challenges are temporary, but the financial habits you develop during difficult times can benefit you for decades to come.

By implementing these ten strategies, you’ll not only weather the current storm occurring amid the Trump economy but potentially find yourself in a stronger position when blue skies return.

The most successful people don’t just survive economic downturns. They use them as catalysts to reassess priorities, eliminate financial waste, and position themselves for an eventual recovery.

You can be one of them.

Frequently Asked Questions on Surviving the Trump Economy

 

1. How does the Trump economy compare to previous economic downturns?

The Trump economy is marked by high volatility driven by trade wars, deregulation, and rising inflation. Unlike prior recessions triggered by systemic financial collapse or pandemics, this one reflects political and fiscal policy shifts. The uncertainty around tariffs and federal spending makes planning harder for consumers and businesses alike.

2. What financial habits increase resilience during an economic downturn?

Consistently saving a portion of your income, limiting high-interest debt, and diversifying income streams are foundational habits. Automating savings and using a “needs vs. wants” filter for expenses create strong defenses when the economy falters.

3. Why is personal budgeting more critical in a Trump-induced recession?

Because inflation and policy directives can swing sharply under the Trump administration, a flexible and responsive budget allows you to adapt quickly. A well-managed budget helps you maintain your financial goals despite unexpected increases in housing, food, or healthcare costs.

4. How can side hustles help survive the Trump economy?

Side hustles provide financial stability and empower you to replace lost income or pay off debt faster. They also offer the flexibility to scale, reduce dependency on one job, and often develop into full-time businesses during recessions.

5. What role does health insurance play in financial resilience?

Health-related debt is a leading cause of bankruptcy in the U.S. Maintaining good insurance coverage—even during job loss—protects you from massive medical bills. It’s an essential safety net in uncertain economic times.

6. Is now a good time to invest, or should I hold cash during the Trump recession?

If you’re financially stable, downturns often present investment opportunities. Dollar-cost averaging and investing in undervalued sectors can yield long-term gains. However, it’s vital to keep a healthy emergency fund (preferably 3 to 6 months) before taking on added risks in a volatile stock market.

7. How can managing debt reduce my vulnerability during economic chaos?

Debt amplifies financial pressure. Paying down high-interest debt increases cash flow, reduces risk, and boosts your credit profile. It also frees you from the burden of juggling multiple payments during potential income loss.

8. What does “building a Plan B” really mean in practice?

It means creating an alternate income or backup strategy. This could involve freelancing, launching a microbusiness, investing in passive income, or learning in-demand skills like data analytics or digital marketing to futureproof your career.

9. Are emergency funds still effective with inflation so high?

Yes, but the target amount may need to be adjusted. If you already have a good amount of cash reserves, instead of those 3–6 months’ worth of expenses, aim for 6–12 months if possible. Even during inflation, a dedicated savings cushion can prevent you from relying on high-interest debt in a crisis.

10. How can I identify opportunity during economic uncertainty?

Look for gaps created by disruption: discounted real estate, undervalued stocks, businesses for sale, or skill shortages. The key is preparation. Those who maintain liquidity, update their skills, and stay informed are positioned to capitalize when others are retreating under any economy, not just the Trump Economy.