Tips from money expert Rachel Cruze on managing money during tough economic times

From Yahoo Finance: 2025-04-19 11:01:00

A recent SurveyMonkey and CNBC survey revealed that 73% of Americans are facing financial stress due to layoff fears, high interest rates, and rising prices. Good money management is crucial during shaky economic times, says money expert Rachel Cruze. She suggests budgeting, tracking expenses, and prioritizing savings to avoid going broke.

Cruze’s recent YouTube video outlined five steps to avoid going broke and better manage money. She emphasizes the importance of having a budget to gain control over finances, track expenses, and rein in unnecessary spending. Using tools like the Ramsey Solutions EveryDollar app can help individuals achieve financial stability.

To break the cycle of excessive spending and debt accumulation, Cruze advises making cuts in the budget or taking on a second job to increase income. Prioritizing saving $1,000 as a financial safety net can help cover unexpected expenses and prevent falling back into debt. A cushion is essential before paying off debt to avoid financial setbacks.

Increasing the emergency fund to three to six months’ worth of expenses is crucial for financial security. This fund should be easily accessible and offer competitive interest rates. A large cash reserve provides peace of mind during tough times, like a layoff, ensuring monthly expenses are covered.

Cruze suggests continuing to make extra cash through a side gig or second job to build a financial cushion for future investments or major purchases. It’s essential to cut spending by distinguishing between needs and wants, trimming unnecessary expenses to boost savings and financial stability. Regularly revisiting the budget helps identify areas for improvement.

After clearing debt, Cruze recommends increasing the emergency fund to three to six months’ expenses stored in a high-yield savings account. This fund offers protection during unexpected events like a layoff, ensuring financial stability and peace of mind. Automatic transfers and rewarding progress are effective strategies to maintain financial discipline.



Read more at Yahoo Finance: Take These 5 Steps To Avoid Going Broke and Manage Your Money