What Do Economists Do in a Slow Economy? My Expert Strategies & Tips

By Dr. Mary Kelly, Economist, Leadership Expert, and (Reluctant) Shoe Shopper

Economic slowdowns don’t just affect business charts and GDP reports, they ripple through our wallets, our households, and our daily decisions. While I spend a lot of time advising leaders on business strategy, I also believe in taking the right actions personally to make sure I am making good personal finance decisions. That starts at home.

When I sense the economy is slowing, I shift gears. Not with panic, but with purpose.

Here’s what I do to get intentional about my personal finances, and what you can do too.

1. I Start with the Numbers — Yes, My Own

It’s tempting to ignore the details when things feel uncertain. But clarity brings confidence.

I use the Household Budget Template from my free resources page to assess exactly where my money is going. Not where I think it’s going — where it’s actually landing every month. It helps you see where you planned to spend and what you are actually spending. Many people are surprised by what their monthly water bill or electric bills actually are. And my easily downloadable (no sign-ins) fillable forms do all of the math for you.

• What are my “fixed” (costs that I pay every month) costs? (mortgage, utilities, insurance)

• What are my flexible costs? (groceries, gas, gifts)

• What are some frivolous and fun costs? (dining out, new clothes, concerts, other entertainment)

Seeing it all in one place is sobering but also empowering. From there, we can make smart decisions.

2. I Audit My Subscriptions Like a CFO

Most of us are leaking money through forgotten or unused subscriptions — streaming platforms, fitness apps, cloud storage, or the monthly buying club.

Once a quarter, I go through every line of my credit card statements and look at my subscriptions and ask one simple question: Do I use this, and does it still serve me?

Canceling two or three of these is like giving yourself a quiet, surprise raise.

3. I Cook More and Dine Out Less

Yes, you know I love a nice restaurant and a well-paired glass of wine. But when the economy slows, I get back to cooking at home. Yes, it helps that I also love cooking, and I love hosting dinner parties, but dining in on a routine basis is usually healthier and it is definitely more cost-effective.

• More control over cost, quality, and calories

• Fewer surprise bills

• Leftovers that actually save time the next day

And yes, I still enjoy the wine. As you know – usually red, but I am not fussy.

4. I Honestly Reevaluate Wants versus Needs

It is easy to justify purchases in the name of convenience or comfort. But a slowdown is a great time to reflect on what you really want and what you really need. What helps me is thinking about decreasing clutter and simplifying my life.

• Do I really need another pair of shoes in that shade of navy?

• Is this gadget going to improve my life, or is it another drawer-bound mistake?

• Is this impulse or intention?

When I am honest with myself, I usually find that less is more — especially when I am focused on bigger goals.

5. I Set Short-Term Goals That Matters

Having something specific to work toward makes saving feel proactive, not punitive.

• Build an emergency fund

• Be able to contribute more to a charity

• Save for a future adventure — even if it is a year away

• Goals give every “no” today a purpose for tomorrow.

6. I Use My Own Tools, and You Can Too

Everything I just mentioned is part of why I built my Free Resources Vault. Many of you know that my personal finance book, Money Smart: How Not to Buy Cat Food When You Don’t Have a Cat is a fun, targeted book designed to help 18- to 30-year-olds make good financial decisions while they are young, so that they are set up financially for the rest of their lives.  When I was a professor at the Air Force Academy and the Naval Academy, I told my cadets and midshipmen that you really only need to worry about money until you are 40 years old. If you have done the right things starting at 18, you will be set by the time you are 40. Compound interest and other factors are the momentum that generates financial success.

The problem is, many people do not know what to do or do not feel like they have the means to do the right things, at least, that is what they say. The reality is most people just do not know what to do. Many of these young people can do very well, regardless of income levels, if they start now. These are tools I use all the time, including:

• The Household Budget Template

• The Personal Financial Plan

• The 5-Minute Daily Focus Plan

• The 5-Minute Daily Productivity Plan

Whether you are managing a household, a business, or both — these tools help bring order to the chaos.

7. Other Smart Ways to Save

Here are a few more ways to save when the economy tightens, and none of them feel like sacrifice:

✈️ Travel Hacks

• Use travel rewards you have already earned before booking anything new.

• Travel off-season or midweek when flights and hotels are cheaper and less crowded.

• Book rentals with kitchens because a few home-cooked meals on vacation can save hundreds of dollars.

• Look for opportunities for “staycations” so that a weekend in your own town feels refreshing without the airfare and hotel fees.

💡 Energy Efficiency

• Lower your thermostat a degree.

• Replace old lightbulbs with LEDs.

• Use timers or smart plugs that pay for themselves quickly.

🎁 Gifting Smarter

• Plan gifts in advance and take advantage of sales — avoid last-minute markups.

• Give experiences, not stuff — a hike, a dinner, a memory.

🧼 Do-It-Yourself Where It Counts

• Whether it is cleaning your car at home, planting herbs instead of buying them, or fixing something with a YouTube tutorial, DIY can be deeply satisfying and budget-friendly.

• Trade abilities with friends. They may need dog-walking and you may need help decluttering. Offer to help each other.

Financial Leadership at Work Starts at Home

When the economy shifts, it is not just a matter of surviving, it is about being in control. Be intentional. Be smart. Be prepared.

Whether you are leading a company or leading your household, slowing down spending doesn’t mean slowing down your goals. It means adapting with wisdom and grace.

Remember two things: change is always happening, and you are the one in charge of your future.