Jeff Bezos says “keep your money” right now. Here’s why he might be right

Bezos’ advice can help you avoid financial disaster in an economic downturn.

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Main points:

• Jeff Bezos suggests holding onto your money right now to see what happens to the economy.
• It may pay to listen to him as recession looms.
• Having extra money in the bank would be very helpful in a recession.

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If you’re trying to decide whether or not to make a big purchase, you can hold off on breaking out the credit cards and move forward with buying the item you’ve been eyeing.

In fact, Amazon’s founder has some advice for consumers on their spending habits right now that may be very important to listen to. This is what Jeff Bezos said.

Bezos doesn’t think you should spend money right now on this important cause

For the founder of a giant online retailer, it might seem strange to suggest that consumers shouldn’t be spending money right now. But that’s exactly the advice Jeff Bezos gave in a recent interview with CNN.

“If you’re an individual thinking about buying a big-screen TV, you might want to wait, save your money and see what happens,” the Amazon founder advised. “The same is true for a new car, refrigerator, or anything else. another.”

There’s a simple and important reason why Bezos urged holding off on big purchases for now. Bezos believes the economy “doesn’t look good right now.”

In particular, he elaborated on this point to suggest that he thinks a recession and more layoffs may be coming. “Events are slowing down. You’re seeing job cuts in many, many sectors of the economy,” Bezos said.

Given the fact that there are many signs of an economic slowdown and rising unemployment, Bezos believes that waiting to buy can help you “take some of the risk out of the equation.”

Is Bezos right?

Bezos isn’t the only famous business leader or financial expert to warn of a coming economic downturn.

In fact, some experts believe that the country is already in recession. And many others are warning that a recession is just around the corner. If the country enters a period of recession or economic decline, it can mean that many companies are indeed cutting staff, and it is possible that your income will decrease or your job will disappear altogether.

When an economic slowdown or a higher-than-normal chance of job loss looms, putting extra cash in the bank can be a much smarter choice than buying items like appliances or televisions that tend to lose their value after purchase and can’t. easily resold. This is especially true if you have to go into debt to buy these products.

If you’re spending money now instead of saving it, you’ll have less cash on hand when your income drops, which could mean you’ll have more trouble paying important bills like your mortgage or car payment. You’ll also have less peace of mind heading into a recession if you have extra items but not enough cash in your savings account to see you through tough times.

Borrowing for big purchases would be worse, though, because not only would you have less cash on hand, but you’d also have to make a new monthly payment.

With anxiety from many financial and business leaders, following Bezos’ advice and avoiding unnecessary purchases may be a smart decision right now. If the economy turns out to be stronger than expected, you can always make your purchase later, but you can’t go back and undo your purchase if things go south.