Are you worried that tensions abroad will affect your portfolio? Here’s what to do.
- New data reveals that most Americans believe the conflict in Ukraine will impact their day-to-day finances.
- This is the time to build up savings, pay off debts and provide emergency income.
The start of 2022 has been a tough time, to say the least. In January, many states were still bearing the brunt of the omicron surge. Soon after, tensions began to boil overseas. At the moment, there is war in Ukraine, and we don’t know how long this will continue.
All of this (plus our good friend inflation) has Americans worried about their finances. In a recent MassMutual poll, 73% of people think the conflict in Ukraine will have a negative impact on the US economy. And to be fair, we have already seen a slight rise in gasoline prices as a result of the war overseas.
If you are concerned about the impact the Ukrainian conflict will have on your wallet, it is imperative that you take steps to secure your finances. Here are three to start with.
1. Boost your emergency fund
Even in the best of times, it’s a good idea to have a solid emergency fund — one with enough money to cover three to six months of living expenses. If you’re not there yet, try transferring the extra money to your savings account in the coming weeks.
Granted, with the cost of living so high, that’s easier said than done. But if you have the ability to cut back on your discretionary spending, now is a good time to scrap that cable plan and make more of your own meals rather than splurge on take-out three nights a week.
2. Eliminate high-interest debt
If the US economy deteriorates, job loss could become reality for many people. If you manage to eliminate some of your current debts, you will prepare yourself to better resist this type of situation.
Of course, paying off credit cards is by no means easy to do, especially right now. But once you’ve built up your emergency fund, you can take additional funds and use them to pay down your debt. You can also try consolidating your debt through a balance transfer or personal loan to make it more affordable to pay off.
3. Get a secondary source of income
A second job could allow you to save more and fill your emergency fund or pay off expensive debt. Plus, having that stream of income could give you some peace of mind at a time when you might be worried about future job loss.
While the cost of living may be high these days, the good news is that the job market is still strong – and that extends to the gig economy. You might find it easy enough to line up a regular side hustle.
It is too early to tell what impact the Ukrainian conflict will have on the US economy. But if you’re worried about how it might affect your wallet, take these steps to secure your finances before things get worse.
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