Suze Orman Says Stop Worrying About a Recession: With constant headlines warning about economic downturns, it’s easy to fall into a cycle of anxiety. But financial expert Suze Orman wants you to take a deep breath and shift your focus. Rather than stressing over what might happen, she recommends taking smart, proactive steps to protect your financial health.
“Stop worrying and start preparing,” Orman urges. “Every dollar you don’t spend today is a dollar that can protect your future.” In this article, we’ll break down her top recession-proof money strategies, backed by data, actionable tips, and real-world examples to help you build financial resilience with confidence.
Suze Orman Says Stop Worrying About a Recession
Suze Orman’s approach to recession fears is simple but powerful: stop worrying, start preparing. By focusing on what you can control—like saving, budgeting, upskilling, and smart spending—you can build financial security no matter what the economy does. So take that first step today: review your budget, open a high-yield savings account, or sign up for an online course. Because peace of mind isn’t just possible—it’s planned for.
| Topic | Details |
|---|---|
| Main Advice | Reduce spending and boost emergency savings instead of worrying about the economy. |
| Emergency Fund | Save at least 12 months of living expenses in a high-yield savings account. |
| Healthcare Costs | Prepare for COBRA coverage if you lose your job; plan for premiums that may exceed $600/month. |
| Support for Adult Children | Reconsider how much financial help you’re offering; don’t compromise your retirement security. |
| Skill Development | Learn new, in-demand skills to remain employable during downturns. |
| Digital Tools | Use apps like YNAB, Mint, or Empower to track spending and automate saving. |
| Official Resource | Visit Suze Orman’s Official Website |
Understanding the Economic Context
Economic warning signs—like market volatility, interest rate hikes, or rising inflation—can spark fears of a looming recession. For many, these signals bring flashbacks to the 2008 financial crisis, when millions lost jobs, homes, and savings.
According to a 2024 survey by Morning Consult, nearly 60% of Americans report feeling financially unprepared for another downturn.
But Suze Orman offers a calming perspective: Recessions are part of the economic cycle—and preparation is your best defense.
Suze Orman’s Top Smart Money Moves Which Will Make You Stop Worrying About a Recession
1. Build a Recession-Proof Emergency Fund
One of Orman’s most repeated pieces of advice? Save at least 8 to 12 months’ worth of essential living expenses.
Why so much?
Because job loss during a recession often lasts longer than you think. According to the Bureau of Labor Statistics, the average length of unemployment during the 2008 recession peaked at 40.7 weeks.
Where should you save?
- Use a high-yield savings account at a reputable bank or credit union.
- Avoid risky investments for this portion of your money.
- Automate monthly transfers so you save without thinking.
2. Cut Back on Non-Essential Spending
Now is the time to get brutally honest about your spending habits.
Orman suggests categorizing your purchases as either:
- Needs (e.g., groceries, rent, utilities)
- Wants (e.g., subscriptions, designer items, luxury dining)
Ask yourself:
- Can I pause this purchase for 30 days?
- Will I regret not saving this money later?
Even saving $200/month by eliminating small luxuries can amount to $2,400 a year—a major boost to your emergency savings.
3. Reevaluate Support to Adult Children
Many parents feel obligated to help their grown kids financially, especially during tough times. But Orman is clear:
“Your children have more time than you to recover financially. You do not.”
She advises prioritizing your retirement and emergency fund over non-essential support to adult children.
Instead of giving cash, consider:
- Helping them create a budget
- Sharing financial literacy tools
- Encouraging side hustles or upskilling
4. Prepare for Healthcare Costs (Especially COBRA)
If you lose your job, you may be eligible for COBRA—a program that lets you keep your employer’s health plan for up to 18 months. But it comes with a catch: you pay the full premium yourself.
This could cost upwards of $600 to $1,000/month, depending on your plan.
How to prepare:
- Factor healthcare costs into your emergency fund.
- Explore alternative options on HealthCare.gov or your state’s insurance exchange.
- Compare costs before you need to act.
5. Invest in Your Skills and Education
Layoffs often come suddenly. Stay ahead by continually investing in your employability.
Suze Orman encourages:
- Online certifications in tech, healthcare, or finance
- Learning platforms like Coursera, edX, or LinkedIn Learning
- Exploring side gigs that build marketable experience
Example: If you’re a retail worker, learning digital marketing or basic coding could help you pivot to remote freelance jobs if the economy sours.
6. Use Financial Tools to Stay on Track
Make smart money habits easier with digital apps designed to manage your finances:
- You Need a Budget (YNAB): Helps you assign every dollar a job.
- Mint: Tracks expenses and alerts you to bills.
- Empower (formerly Personal Capital): Offers net worth tracking and retirement planning tools.
Most tools offer free versions and mobile apps for on-the-go accountability.
7. Avoid These Common Recession Mistakes
Don’t:
- Cash out your 401(k) early (you’ll pay taxes and penalties).
- Panic sell your investments.
- Ignore your budget.
- Accumulate credit card debt.
Do:
- Stay calm.
- Stick to your long-term financial plan.
- Focus on building your financial foundation.
Real-Life Scenario: Maria’s Emergency Fund Saved Her
Maria, a 43-year-old graphic designer, was laid off during the 2020 pandemic. Thankfully, she had followed Suze Orman’s advice for years.
“I had 10 months of expenses saved,” Maria shared. “That cushion gave me time to upskill, freelance, and eventually land a higher-paying job.”
Her story proves that preparation turns panic into opportunity.
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Frequently Asked Questions (FAQs)
What’s the ideal amount for an emergency fund?
Answer: Suze Orman recommends saving 8–12 months of living expenses in a high-yield savings account. This offers more cushion than the commonly recommended 3–6 months.
Should I still invest during a recession?
Answer: Yes, if your emergency fund is secure. Continue investing consistently in retirement accounts, especially if you’re buying long-term. Market dips often offer “discounts” on future growth.
How can I recession-proof my job?
Answer: Focus on becoming indispensable: take on critical projects, learn new tools, or cross-train in other departments. Upskill with certifications or part-time study.
What’s the best place to keep emergency savings?
Answer: Use FDIC-insured high-yield savings accounts at reputable online banks like Ally, Marcus by Goldman Sachs, or Capital One.
