With inflation and recession on the mind, many Americans are scaling back.
And they should be, says Amazon and Blue Origin founder Jeff Bezos. The billionaire businessman told CNN that people should hold off on major purchases like new cars and televisions in case a lengthy economic downturn comes to pass.
Related: How Entrepreneur Millionaires Prepare for a Recession
Similarly, small businesses should avoid spending large amounts of capital or making sizable acquisitions at this point, he told the outlet.
Even the biggest companies are feeling the pressure, especially in the hard-hit tech industry. Elon Musk’s Twitter laid off 3,700 people (about half its staff); Mark Zuckerberg’s Meta slashed 11,000 jobs.
Just yesterday, Amazon — down more than 40% year over year — announced it would cut approximately 10,000 employees, following a hiring freeze instated last month.
Having some extra cash on hand can benefit individuals and organizations alike amid so much economic uncertainty. “Take some risk off the table,” Bezos told CNN. “Just a little bit of risk reduction could make the difference.”
Related: Jeff Bezos Awards Dolly Parton $100 Million, Plans to Give Back
The billionaire, who was once the richest man in the world, also said he’s still a big believer in an “attainable” American Dream.