What I’m doing with my money

From rising clothing and food prices to unexpected car repairs, everyday expenses are creeping up — and the prospect of government-imposed tariffs aren’t helping. Add in a rocky stock market and a few losses in my retirement accounts, and it would be really easy to panic. But I haven’t … yet.

I’ve paid off $300,000 of debt, and as an elder millennial, I have weathered recessions and economic storms before. What’s helped me the most is not overreacting out of fear. 

Instead, I try my best to make calm, clear decisions based on what matters most to me — and what I want my money to do for me. Here’s what I’m doing with my money right now:

Even though things are getting more expensive, I’m still spending money — I’m just not wasting it. For example, I’m a fashionista, but I haven’t bought any new clothes this year, and I don’t plan to anytime soon.

I’m getting creative with what I already own, thanks to what I call the “$1 rule”: If I’ve worn it as many days as every dollar I paid for it, it’s a keeper. Otherwise, it’s time to repurpose it (think jeans into cutoffs) or donate it.

Instead of throwing money at “convenience inflation” — impulse buys, random Amazon finds or dupes that don’t last, I’m redirecting those funds toward what truly supports my health and happiness: nutritious food, better sleep, and time-saving services that keep my stress low.

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I am saying yes to buying things I use every day, like my favorite health supplements and imported items I know will see a price hike (hello, matcha!). As an Asian American, I’m especially aware that many of my household staples are imported, and I’m stocking up now ahead of potential price spikes.

One of my clients is a therapist, and she’s already seeing patients drop off because of fears around job loss. I encourage my clients to keep therapy in the budget, especially now, by cutting what’s not essential so they can keep what is. Emotional support is just as important as financial planning when things feel uncertain.

I’m not hoarding cash out of fear, but I am building in a little more flexibility.

I’m slightly increasing my cash reserves to prep for higher costs in essentials — especially groceries, clothing, and car repairs. I even have a little “car-buffer fund” now, just in case auto part tariffs sneak up on me.

I still keep six months of emergency expenses in a high-yield savings account, but that’s because I’m debt-free, a lifestyle choice that has served me well in the last two recessions.

For my clients who still carry credit card debt, I’m urging them to pay that off now. If the interest rate is 20% and prices on goods go up another 20%, that’s a recipe for cash flow chaos, even if your spending habits stay the same. Paying down credit card debt is saving 20% that would have gone to the credit card company instead of staying in your pocket.

One easy shift that’s helping me and my clients: pay your credit card weekly instead of monthly. It helps catch price creep in real time. Paying your credit card bills on a monthly basis means you’re still paying for purchases from up to 30 days ago.

Yes, I’ve looked at my retirement account recently — and yes, it stung. Watching something I’ve worked so hard for drop in value because of man-made economic decisions is frustrating.

But I’m not pulling my money out. I’ve done the panic withdrawal in the past, and I regretted it.

I’m still maxing out my 401(k), IRA, and Flexible Spending Account and sticking to my plan with dollar-cost averaging. I’m not putting extra into my brokerage right now, and this particular downturn in the stock market sped me up to what I knew I had to do all along: diversify. 

We often mistake having multiple stocks as diversification, but as we saw recently, many stocks tend to move in the same direction, so it’s important to look at the asset classes you are invested in. 

I’m not withdrawing a dime of my retirement, and you shouldn’t either unless you are prepared to pay the extra taxes and penalties. But I am shifting away from companies that don’t align with my values within my retirement accounts. To me, investing isn’t just about returns — it’s about what kind of world you want to build.

This is the advice I’ve shared with my money coaching clients lately: manage your money as though the recession is already here. If I’ve learned anything from the last two decades, it’s that uncertainty isn’t going anywhere.

I’ve stopped waiting for the “perfect” economy to make decisions. Instead of doom scrolling, use this time to refine your budget, double down on stacking cash and paying down debt, and stay vigilant of your present progress, rather than trying to predict the future.

Bernadette Joy is the author of “CRUSH Your Money Goals″ and a personal finance expert and investor dedicated to helping you beat burnout and reach financial independence. You can find her on Instagram, YouTube and LinkedIn.

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