Ways to manage stress, finances amid what could be a recession
MINNEAPOLIS -- It's possible the country may be entering a recession.
The economy is adding hundreds of thousands of jobs a month, but there have been two quarters in a row of negative GDP growth.
At least on a small scale, Minnesotans are feeling the squeeze on their wallets.
"Absolutely I've noticed a difference," said Vic Nelson, a father of two from Minneapolis. "I was looking at a gallon of milk. It's different."
Paris Holiday was on her way to a Goodwill outlet Thursday when she spoke to WCCO.
"I'm buying clothes that are not at Macy's and Nordstrom," she said. Nelson says she's also stocking up on food in her pantry.
Changing up spending habits because of higher expenses elsewhere is a necessary dose of prioritizing in this economic climate.
Nicole Middendorf, the CEO of Prosperwell Financial, says there are ways to make it all less stressful.
"The whole goal is to have a financial plan," she said. "If you have a plan, you want to focus on that plan and actually look at it."
Middendorf advises planning for the long-term, like for retirement or college funds, and also short-term.
She says to actually write out a budget and make it one that accounts for cost-of-living increases.
"We live unconsciously with our money and so the important thing is to live consciously, because if you live consciously and live aware, you're generally going to have less anxiety when it comes to your money and you're probably going to spend a lot less," Middendorf said.
Nelson lives like that and feels more insulated to talk of a possible recession.
He says he'd have to make some changes if things continue on like this for a very long time, but for now, stay the course.
"With the long-term investments, I'm a big fan of 'I didn't lose anything until I sell,' so I'm not selling," Nelson said.
Middendorf said if you're in a relationship, have a "money date." Sit down and discuss your plan with each other, including for worst-case scenarios like losing a job.
