Don’t Panic: Making Financial Plans During the Worst of Economic Uncertainty

Economic uncertainty doesn’t have to derail your financial future. Having a solid plan can help you stay on track despite market volatility, inflation concerns, and employment insecurity.

“While current economic uncertainty can be overwhelming, the best way to navigate through such turbulent times is to first understand that when it comes to investing, the best way to manage your emotions is to focus on time, not the timing,” Nicole. B. Simpson, founder and CEO of Harvest Wealth Financial, told Investopedia. This means committing to a long-term investment horizon instead of trying to perfectly time when to buy or sell specific investments.

Economic Uncertainty is Growing

In a March 2025 Inuit survey, 69% of respondents across generations said the financial environment makes long-term planning feel out of reach, and 68% said they aren’t sure they’ll ever be able to retire. That was especially true for young adults, with 75% of Gen Zers and 68% of millennials saying economic uncertainty has made it harder to plan.

A Gallup survey conducted in April 2025 found that a record-high 53% of Americans believe their financial situation is worsening—the first time in 24 years that a majority has expressed pessimism. Meanwhile, the University of Michigan’s Consumer Confidence Index showed a one-third decline in the first four months of 2025, the worst such drop since 1990.

“Consumers perceive risks to multiple aspects of the economy, in large part due to ongoing uncertainty around trade policy and the potential for a resurgence of inflation looming on the horizon,” Joanne Hsu, director of the University of Michigan’s Surveys of Consumers, said in a press release. “Most concerning for the path of the economy, consumers anticipate weaker income growth in the year ahead.”

What Can You Do Amid the Uncertainty?

Economic uncertainty affects every aspect of financial planning. It threatens job security, makes markets volatile, makes it more difficult to save, and means you’ll likely not have enough knowledge about the future to plan for it. You might also hesitate to make commitments, such as booking a vacation, opting to preserve cash should the economy or your financial situation worsen.

At these times, it can be tempting to panic and sell everything. Emotions are often an investor’s worst enemy. And according to many experts, they’re best controlled by creating a rigorous plan, preferably with the help of an expert. Keep calm and carry on, they say.

“A life plan will have an investor identify how much time they committed to achieve the stated goal,” Simpson said. “Staying the course, if it aligns with your time horizon and risk tolerance, is almost always the best strategy.”

Simpson said she is mindful that circumstances can change and prompt a need to modify financial plans. An example would be losing a job or getting a pay rise. How should people respond in these situations? “If something material shifts,” Simpson says, “reviewing your plan with a financial planning expert will help you avoid making financially devastating decisions.”

Consider these practical steps to strengthen your financial position during uncertain times:

1. Build an emergency fund covering three to six months of expenses.
2. Review your investments to ensure they are diversified across asset classes.
3. Review and possibly cut nonessential spending.
4. If you can avoid it, don’t sell off your stocks at market lows because you’ll lose out on gains once the market goes back up.

By focusing on what you can control and maintaining discipline with your financial strategy, you can navigate economic uncertainty with greater confidence.

The Bottom Line

Economic uncertainty threatens financial plans. It can lead to loss of income, rash decisions, and excessive anxiety about the future. But it doesn’t have to be that way. The best thing you can do is stick to a preset financial plan, ignore the noise, and make changes only with a clear head and, ideally, the help of an expert.