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When news cycles are dominated by war and daunting market headlines, we want to know what to do.

The pressure on stocks, new inflation threats, and an unreliable job market can make us feel vulnerable — and we don’t know what’s ahead.

Granted, we can't control what happens in the Middle East, in Washington, or with oil prices, the stock market, or the broader economy. But when the news feels like a storm surge, you can make your own financial plan the breakwater. You don't need to know if a recession is coming to prepare for one; You just need to know you’re ready to handle whatever is thrown your way.

Where should you start? Here are a few strategies that can help you build confidence amid all the uncertainty.

Do a hard reset on discretionary spending. You can’t control inflation or the broader direction of the job market, but you can get your financial house in order ahead of any big changes in income or prices (we’re looking at you, gas). The goal is to give yourself more budget breathing room before you actually need it. You’ve heard it before, but cancelling subscriptions can free up more cash than you’d think. And any other fat you can trim will only help you build savings faster and avoid taking on any new credit card debt. (Use a free budget tracker like SoFi’s to set targets and track spending.)

Target credit card and other variable rate debt. Before the war with Iran, the question was whether benchmark interest rates would continue to drop. But suddenly we’re talking about the possibility that they could go up. To avoid paying higher interest rates on credit card balances, consider tackling them now. If your credit score allows, you may even want to explore a fixed-rate consolidation loan. Locking in a predictable monthly payment protects you from future rate hikes and clears the path to becoming debt-free faster.

Bolster your financial buffer. One of the most important financial safety nets is readily accessible emergency savings. As a general rule of thumb, you’ll want to have enough to cover at least three to six months’ worth of basic living expenses. You’ll use this to fall back on if you or someone in your household loses a job or has an unexpectedly large expense.

Pro tip: For years, keeping cash in a savings account may have felt like a stagnant move. But in today’s environment, cash can be a strategic asset. High-yield savings accounts like SoFi’s still offer solid returns, so why not make your “cash cushion” into a source of passive growth?

Use market downturns to your advantage. There are a few silver linings to downturns in the stock market. One of the biggest is the opportunity for tax-loss harvesting. By selling investments that have lost value, you can offset capital gains taxes on better-performing investments, reducing your overall tax liability. Depending on your risk tolerance, you might also want to look for deals when stock prices are lower. Just remember there are no guarantees that prices will recover.

Plan ahead. Capitalize on your financial security. If you’ve been meaning to replace the brake pads on your car or get that mole checked out by the doctor, do it now. When there’s a sale on non-perishable essentials like toilet paper or paper towels, stock up. And if your resume isn’t up-to-date or you haven’t kept in touch with old work connections, get yourself ready in case you need to start job hunting or add a side hustle. Hopefully you won’t need to, but you’ll feel better being prepared.

Related Reading

Would Your Finances Pass a Stress Test? (SoFi)

Surging Oil Prices Could Wipe Out Benefits From Trump's 'Big Beautiful Bill' (CNBC)

How High Could Oil Prices Go – and What Might the Global Economic Fallout Be? (The Guardian)

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