Americans are anxious about a recession as inflation cuts into their spending power

Americans are anxious about a recession as inflation cuts into their spending power  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  VIEW IN BROWSER | SUBSCRIBE WED, AUG 03, 2022 YOUR WEALTH Editor's Note While financial experts continue to debate whether a recession will happen, most Americans are apparently convinced we're headed for a big economic downturn. A variety of surveys and research reports have concluded that many Americans expect a recession and are bracing for it as they look for ways to be prepared. For many, the biggest recession warning sign is high inflation, and that will obviously fuel feelings of concern. One expert who spoke with CNBC said: "When something as fundamental to people's everyday lives as gas prices and grocery bills goes sky-high, it really has a huge impact on the way people look at things." A survey that CNBC reported on found that 82% of Americans polled worry inflation will have a negative impact on their purchasing power in the next six months. Moreover, the same share of respondents said they expect inflation to get worse over the next 12 months. It's obvious that a recession will impact your everyday life and budget. So, what are things people can do to prepare? The CNBC personal finance team spoke to some financial advisors and they say there's plenty of things people can do as both consumers and as investors. Since no one can predict when a recession may happen, it's best to focus on what's actually in your control, such as how much you're spending and saving, one advisor said. Here are some tips from financial experts: Evaluate your budget every month to see what expenses could be eliminated. After cutting out unnecessary expenses, increase your savings budget as much as you can. Ideally, 20% of your income should go to your savings. Track each debt account (mostly credit cards) you have to see how much you owe and your various interest rates. Focus on contributing more of your income to debt that holds the highest interest rates. Try to maintain your budgeted 401(k) plan contributions. It can be stressful to continue to put money in while a recession is looming, but keeping up with these can benefit you in the long-term. Whether your investments are doing well or not, avoid making emotional money decisions. If the market takes a turn for the worse, consider riding it out for any upswings. For more cool stuff like this, be sure to visit CNBC's Financial Advisor Hub and Personal Finance section. Jim Pavia Money Editor @JIMPAVIA Americans are anxious about a recession as inflation cuts into their spending power As experts debate whether or not the U.S. is already in a recession, many Americans are bracing themselves for a downturn. U.S. economy continues to shrink and many aren't prepared for an economic downturn. Here's what advisors are telling clients as recession fears grow As the U.S. economy shrinks for a second straight quarter, many aren't prepared for an economic downturn. Here's what advisors are telling their clients. Credit card balances jump 13%, highest leap in over 20 years, as inflation outpaces wage growth Americans now say they need to be making about $107,800 a year to feel financially healthy, roughly double the national average. Unrelenting inflation is driving up costs, leaving more Americans living paycheck to paycheck With no break in sight for rising prices, even wealthier Americans are feeling financially strained. Average premiums for Medicare prescription drug coverage are set to dip to about $31.50 a month in 2023, deductibles to rise The monthly amount that Medicare beneficiaries will pay for drug coverage is projected to inch downward, on average, according to program officials. Want to know how a Social Security benefit cut would affect you? There are calculators for that Social Security may not be able to pay full benefits after a certain date if Congress doesn't act sooner. Here's how to gauge how much in benefits you may lose. Employee stock purchase plans can carry 'a big risk,' says advisor. What to know before buying in If you're working for a public company, you may have a chance to buy discounted shares through an employee stock purchase plan, or ESPP. Here's what to know. 'Once-in-a-generation' prescription drug pricing reform could be coming. Here's what we know A Democratic bill calls for letting Medicare negotiate the price of prescription drugs. The change may result in significant savings for families, experts say. Emergency savings are minimal or nonexistent for many households. Lawmakers want to change that — and boost retirement savings in the process Two Senate proposals differ in their approach to boosting emergency savings, although both come with certain parameters and are linked to 401(k) plan accounts. Here's how ABLE accounts, special needs trusts differ ... and how they can work together Those with special needs must shelter assets carefully to not be disqualified from government aid. That's where special needs trusts and ABLE accounts come in. CONTRIBUTORS Sharon Epperson @sharon_epperson Josh Brown @ReformedBroker Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel   Digital Products Feedback Privacy Policy CNBC Events   © 2022 CNBC LLC. All rights reserved. A property of NBCUniversal. 900 Sylvan Avenue, Englewood Cliffs, NJ 07632 Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes and Market Data and Analysis. Data also provided by THOMSON REUTERS