Can you Trump-proof your finances? Here's how to prepare for tough times

With talk of a recession looming, watch your cash flows, stay invested and employable and manage your credit wisely.

- Lorna Tan

It is difficult to remain calm when you are warned of the dangers ahead and see the terms "trade war", "recession fears", and "market crash" staring you in the face, no thanks to the rippling effects from the Trump tariffs.

With heightened market uncertainty and the prospect of a recession rearing its ugly head, it is prudent to start preparing for tough times and get a better handle on your personal finances. Prices are expected to remain elevated as the trade wars will hurt the global economy and may fuel inflation, given how much Singapore imports.

In a time of uncertainty, it's important to focus on what you can control. Having a sound financial plan with adequate emergency cash and insurance can mitigate risks, while constantly upgrading your financial know-how and skill sets can lead to income opportunities.

Here are six things you can do to boost your financial resilience.

DEAL WITH CASH-FLOW SQUEEZE When the cost of living rises faster than income, the vulnerable groups that struggle to make ends meet are likely the low-income earners, and the sandwiched class who suffer from the financial strain of supporting both their children and ageing parents while not being poor enough to qualify for significant government assistance.

It is prudent to tighten your belt, set aside emergency cash of three to six months of expenses or more if you have dependants, and use digital tools to track your cash flows more diligently and reduce discretionary spending.

Some ways to keep expenses manageable include eating at home and reducing use of meal delivery services as prices of food are often marked up compared with ordering in-store. Unsubscribe from memberships that you no longer use such as Netflix, gym and online software. Look for cheaper travel alternatives, such as budget flights, and travel during non-peak periods, and shop around for cost-effective options.