Safeguarding Your Finances Amid Economic Uncertainty: Smart Moves to Avoid Bankruptcy
- McMann, P.A.
- Apr 11
- 2 min read
Safeguarding Your Finances Amid Economic Uncertainty
Smart Moves to Avoid Bankruptcy
With recent economic shifts under the Trump administration—including the rollout of reciprocal tariffs on foreign imports—many Americans are wondering how to protect themselves financially in case the stock market becomes unstable. While these measures are designed to strengthen American industries and reduce trade deficits, market volatility and rising prices could put added strain on everyday consumers.
At McMann, P.A., we believe the best bankruptcy defense is a good financial offense. Here are practical ways to protect your wealth and avoid bankruptcy, even during times of economic uncertainty.
1. Create (and Actually Follow) a Budget
Start by assessing your income, expenses, and financial goals:
Track every dollar you earn and spend for 30 days to identify unnecessary costs.
Use free tools like Mint, YNAB (You Need A Budget), or spreadsheets.
Prioritize essential expenses: housing, utilities, food, healthcare.
Eliminate or reduce discretionary spending like dining out, entertainment, and subscriptions.
Having a realistic budget helps you control debt accumulation
identify savings opportunities, and reduce your reliance on credit cards when prices rise.
2. Build an Emergency Fund
Unexpected job losses, medical bills, or inflationary spikes from global trade disruptions can lead to financial chaos. Aim to:
Save at least 3–6 months of essential living expenses.
Keep funds in a high-yield savings account separate from your checking.
Start small: Even $25–$50 a paycheck builds a cushion over time.
Emergency savings protect you from using high-interest credit cards or payday loans in a crisis.
3. Reduce High-Interest Debt Now
If interest rates rise in response to inflation or economic policies, variable-rate loans and credit card balances can become more expensive. Steps to take:
Focus on paying off high-interest debt first (avalanche method).
Consider credit card consolidation or balance transfer offers with 0% APR (watch for fees).
Avoid taking on new debt unless absolutely necessary.
Reducing debt improves cash flow and strengthens your financial resilience.
4. Diversify Your Assets
In volatile markets, don’t put all your financial eggs in one basket:
Consider low-risk investments like bonds, money market accounts, or index funds.
Avoid over-concentration in a single sector or company stock.
If you’re unsure, talk to a financial advisor or fiduciary (not just a broker).
While the market can be a strong long-term wealth builder
diversification helps cushion short-term losses.
5. Monitor Tariff Impacts on Your Industry or Career
Tariff policies can shift prices, costs, and employment in certain sectors (e.g., agriculture, manufacturing, logistics):
Stay informed about how tariffs affect your industry.
Build career resilience by upskilling, networking, or exploring alternative income streams.
If self-employed, consider forming an LLC or protecting personal assets.
6. Don’t Ignore Financial Warning Signs
If you find yourself:
Falling behind on bills
Maxing out credit cards
Borrowing to pay for basic needs
Receiving collection calls or lawsuits
…it’s time to take proactive steps before bankruptcy becomes your only option.
McMann, P.A. Is Here When You Need Help
If you’re worried about your financial future, speaking with a knowledgeable attorney can help you understand your rights and options. While we provide full bankruptcy representation in Central Florida, we also assist individuals in avoiding bankruptcy by offering strategic legal advice, negotiation with creditors, and financial restructuring support.
Mark D. McMann
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