President Donald Trump's aggressive tariff plan is deeply unsettling — with good reason.

Dartmouth University economic historian Douglas Irwin wrote in the Economist that average U.S. tariffs on imports were just 2.3% in 2024. Tariffs are now expected to rise immediately to some 30%, where they were in the late 1800s, he added. Tariffs at these rates are the highest of any advanced industrial democracy by a wide margin.

Little wonder investors and business owners are reeling. We're in deeply uncertain territory as Trump and his administration try to reshape the global trading system that evolved after World War II. Volatile markets signal the risk of tariff wars is suddenly all too real. The same goes for rising odds the U.S. and global economies sink into recession.

Both might be avoided (we can hope), but the odds seem uncomfortably poor at the moment.

Financiers and market-watchers are rightly emphasizing variations on the theme that investors would be wise to stay the course with their portfolios, not panic, and stick with their financial plan (and make one if you haven't created a money blueprint). No one knows which way the market or the economy will end up this year and in coming years. We do know that panicking is hazardous to your long-term wealth.

Instead, focus on what you can control. We can't control Trump, the markets or the economy. We can take practical steps to better prepare us to navigate the turmoil, including reviewing our household budget. See if there are sensible spending cuts to make, consumer debts such credit cards you can pay off quicker and more household cash flow to put into savings accounts.

More importantly, turn the budget exercise into an opportunity to take a close look at spending patterns. The underappreciated gains in household finances and lifetime experiences come from being smart on the spending side of the personal finance equation.

When it comes to spending, I've long advocated for the benefits of adopting a frugal mindset. Frugal spending means being thoughtful about purchases, choosing quality over quantity, and doing more with less. Frugality pushes us to think about spending our money on things, experiences and people that matter to us.

The financial returns on frugal habits compound over time. A frugal lifestyle translates into less stress in volatile times. Frugality builds into household finances a healthy margin of safety against inevitable stormy times — like now.

Chris Farrell is senior economics contributor for "Marketplace" and a commentator for Minnesota Public Radio.