As Risk of Recession Rises, Here Are 7 Practical Steps To Prepare

Runaway inflation is doing more than raising prices for the average American. It's also increasing the risk of a global recession.

With the future uncertain, many Americans are unsure how to protect their finances. Fortunately, there are some simple and concrete steps to prepare for a recession.

If you have a safety net and are making wise decisions with your finances in the good times, a recession is often more like a speed bump than driving off a cliff.

Don't Panic

Most financial advisers recommend saving at least six months of expenses in an emergency savings account. This emergency fund will allow you to continue paying for necessities such as rent, food, and utilities should you lose your income.

Increase Your Cash Reserves

While it's never a good idea to rack up thousands of dollars in credit card debt, now is the time to pay down high-interest debt aggressively.

Pay Off High-interest Debt

When it comes to preparing for a slowing economy, one thing you don't want to do is take on a substantial financial burden. Now may not be the time to buy that new car or bigger house at the top of your price point.

Reconsider Big-ticket Purchases or Sales

As the next recession approaches, it may be wise to think twice about making a big career move and perhaps consider staying in a job where you've proven your value.

Recession-proof Your Job

Whether you have a hobby like woodworking, a skill that you can use as a freelancer, or even just a phone to take surveys and earn money through PayPal, there has never been an easier time to find ways to bring in extra income outside of your day job.

Start a Side Hustle

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