How to Financially Survive Trump 2.0’s Tariff Spring

While most people don’t agree with this self-inflicted tariff war, April is always a great excuse to engage in Financial Spring Cleaning. Try not to get cute with your cash, things might be more expensive for longer. Buckle up because it will be a rollercoaster through Q4 2025. Add in Buy Now Pay Later, taxes, and Tipflation; it’s best to stay home for a bit if you can.

The Federal Reserve is set to meet on May 6-7, 2025. Investors, Banks, and consumers expected the federal fund rate to be reduced. However, Fed policymakers will keep rates steady as tariffs push massive uncertainty. Consumer confidence plummeted, and layoff resentment is spilling over. The Trump administration’s rollout of the steepest U.S. tariffs in a century has tanked business sentiment. Even penguins were harmed. That penguin bit was real (ref. US defends tariffs on remote island of penguins and seals). No one in the TEMU business cycle was spared. The preemptive rush on imports was so big that the U.S. gross domestic product output shrank unexpectedly in Q1.

At least Katy Perry went to space.

This is the ‘not normal, new normal‘. Americans are entering the Struggle Era as the reversion to the global mean puts downward pressure on once-subsidized lifestyles. What does it all mean for you?

As a spender, this is not good. For savers, higher-than-average interest rates translate to money being printed monthly or quarterly. And for investors, if quality companies are dropping sub-15 %, the correction might be a great opportunity to bank on future returns. For the ‘near-retirees,’ you might want to stay on the job for an extra year. Boomers need to get a will on paper because the clock is ticking. Funerals cost north of $20k nowadays.

The 1st Quarter of 2025 decreased, and the Worst 100-Day Presidency?

The US economy shrank by 0.3% in the first quarter; bad, right? Well, it is short of the estimated 2.8% from Q4 2024. While it might not sound like much, economists are concerned that we are still paying way too much for common goods. And, consumers agree.

Liberation Day was followed by a 6% drop in the market. It was historic. However, everything seems historic lately. Trump voters and the Republican party appear reticent but onboard for now.

Translation for regular folks?

If households shelled out $10,000 for expenses in 2022, at the rate of inflation and tariff, the new total is closer to $13,000.

It’s not all bad news?

The consumer price index rose 2.4% in March 2025, on an annual basis, according to the U.S. Bureau of Labor Statistics. That’s down from 2.8% in February.

Gas, Groceries, Travel, and Energy are all up. Eggs were up 60.4% in March. Instant coffee is up 13.2%. Sporting events are going for a premium of 25.8%. Rent was up 4%.

After reaching for credit cards and/or tapping into their life savings, people are jumping on the “Buy Now, Pay Later” cycle. That’s a powerful combination for long-term poverty.

How much so?

With new cars going for more than $60,000 at 6.4% and the average home selling for $480,000 at 7.5%, Americans will have to pay out nearly $750,000 in interest over a lifetime. Fortunately, the same solutions during times of uncertainty hold. It’s time for a deep financial spring cleaning routine. It will involve drafting your goals, managing where your money is going, and investing the difference.

It comes down to having a financial plan.

A Better Financial Plan Pre-, During, and Post-Recession

My wife and I hit the $1 Million+ Net Worth in August 2023. We were featured on Bankrate’s “How Black families can build generational wealth, according to experts.” Now we are setting our sights on the $2M mark. With these headwinds, we will lock it in for 2026.

To think that as of April 2020, we were hovering north of $220,000 following the COVID crash. This is wild proof that sticking through works over time. No matter what’s going on, there is always room for improvement and wealth building. IT WAS NOT EASY. However, the journey was made easier by not over-leveraging before the pandemic, way back in 2012.

If you are new here, this article is the TNFG monthly Net Worth Breakdown for April 2025. You are in the right place to see if we can ‘make money, make sense’. Additionally, there are always usable financial nuggets that might help you along the way. Our goal is to show you what we did so that you can do it better.

The best way to survive the next recession is with a great financial plan.

Can We Do This Recession Already?!

I like how MarketWatch puts it: “Don’t worry about the recession coming, it’s likely already here.“

The probability of a recession is up in the air. It’s always been that way and will always be that way. Why?

Recessions are cyclical.

It’s like worrying about the night coming at the end of the day. It’s part of the fabric of how human beings interact with more. I think of it as a recalibration of wealth and an opportunity for the next generation to jump in. Instead of growing in fear, lean into learning. Accept challenges and become more resourceful.

I started digging into the pantry. Maybe it will help lessen my big back. This is a great time to become better cooks. As restaurant prices skyrocket, cooking is a premium skill. We paid $150 for four drinks and two appetizers. DC prices are increasing on top of the 10% sales tax and the near-mandatory tipping of 20% or more. I was about to purchase a half chicken combo from Nando’s. With the prospect of paying $22 total price for mid-meal, I reminded myself that there is food at home.

God bless his soul, cause I’m not going out anymore. There is no incentive when there are food and drinks at home.

Our Net Worth Dropped by $100k and Climbed $48k!

Lesson – Stocks will drop by 10, 20, or even 40%. Try not to lock in the losses.

The month was chaotic, but April attempted to end positively. We barely up as of March 28, and then Trump pulled the rug from under us. Another war, more spending, and more instability. All in all, we were skirting down $100,000 before the final week. In the end, the market clawed back what it could with a 9-day winning streak. The big winners are those with the nerve to buy the dip. See screenshot #2

What’s the current strategy?

Absolutely nothing. When things are chaotic, the best you can do is to hunker down as tightly.

We will pay down our credit card debts by the end of the year. After that, we need to raise our savings to $35,000 (per Investopedia). Additionally, we need to make room to start looking for a new home in 2026.

While stocks are cheaper, we are locking in purchases of Costco $COST, Amazon $AMZN, CVS $CVS, and Eli Lilly $LLY. These are quality stocks to buy and hold for the long term for our portfolio. Our goal is to rebalance into some consumer staples and healthcare. I’ll keep an eye out for dividends.

In the end, try to avoid the urge to spend and increase lifestyle expenditures. This is the time to build your savings and purchase stocks. This strategy is a hedge for the future. Those who adapt will win.

What Happens Next!

The post-liberation universe is different. It will be a while before we feel a sense of ease. There is still a rise in mental health issues that we will all have to contend with. Additionally, there is a growing sense of entitlement for less effort. It’s best not to follow the crowd down the rabbit hole.

All things considered, our net worth is up 2.94%. We readjusted our year-end goal to $1.80M plus or minus $100k. The road to success is non-linear. It’s better to stay positive even during a negative month.

Financial Spring Cleaning Between High Expenses

We brought in good money ($13k), but we ended up overspending. Wedding expenses, travel, and going back to the office, it’s all pretty expensive out here.

Can’t forget about the $6k in federal and state taxes.

Inflation is a real thing. People are feeling it after all this time. I was warned about this in 2021. We spent almost $700 on food and restaurants. Our monthly amount in 2019 was, on average $600/month. This seems so long ago.

We’ve improved on our Amazon spending. Last I checked, we spent nearly $100,000 since 2012 on those deliveries. On average, each purchase was less than $35. This proves that it’s the death by a thousand cuts that gets you.

Another expensive auto bill. Not going to lie, it might still be our worst purchase.

We have two cars. One of them is a dependable 2009, while the other is a sexy 2023 car that all the robbers want. The monthly payments and insurance round out to $1,000 monthly! And that’s every month. April 2025 will go down as our most expensive month ever. Wildly, April is always the most expensive month for us.

Suffice it to say, it’s been a very long month. Right now, my mind is juggling how we stage our cash flow to start helping out our parents in 2027. After that, the next focus point is to retire by December 2032.

Money is getting tight, so we need to band together to make the dollars stretch.

Money stress breaks down people, relationships, and our bodies. It’s best to look ahead and prevent further wear and tear. There are a lot of home upgrades still pending. That’s how opportunities and choices come at you. You have to be five steps ahead to capitalize on the future.

You have to mitigate the future with mental preparation. We have to get that number back to $7,500 in our bank savings account by the end of the year. Our Acid Emergency Financial Plan helped us get through tougher financial times.

Time to reset.

Pumping the Brakes on Spending to Prepare for Whatever Comes Next

With prices peaking, it’s best to step back and not overspend where we can. We had a great talk about our goals and re-centered how we would get there. Remember this key metric of wealth: “Stop equating happiness and social acceptance based on the money you spend.“

Beyond that, here are our overarching goals through 2025:

1. Invest up to $750,000 for the year. Including $5,000 in our M1 Finance Brokerage. Check out our Starter Kit x10 portfolio in real time. If you like the platform and want to start investing, I have the $10 for $10 referral if you need it – https://m1.finance/SYdqDJ2SyADC.
2. Shooting for a sustained investment rate with the push for a $4 million total investment portfolio by December 2032.
   • To help monitor your savings, cash flow, net worth, investments, retirement, and more. All FREE with Personal Capital! Sign up with my link & get a $20 Amazon gift card. *Terms apply. https://pcap.rocks/lawrencegonz
3. Travel is set for 3 countries. We love to take adventures overseas. Secretly, it’s about the food and the sights. But we do leverage our travel credit cards for rewards and perks.

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