Federal Reserve: Most Households Have Less Savings Than Pre-COVID, Raising Recession Risk
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A Federal Reserve study shows 80% of U.S. households have less savings now than before COVID-19, putting the economy at recession risk.
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Having an emergency fund with 3-6 months of living expenses is crucial to withstand financial disruptions. Consider high-yield options.
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Pay down high-interest debt to avoid balances spiraling. Create a budget to allocate income to debt repayment.
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High interest rates make borrowing for big purchases like cars and homes very expensive. Delay major buys if possible.
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Consider alternative real estate investments like REITs and fractional shares rather than buying property if money is tight.