10 Things for Every American To Do Before the Recession Hits

Regardless of when the next one will start or end, if you don't know how to prepare for a recession, it can be scary to think about.

The last recession in 2008 was a particularly hard-hitting one, especially for the Millennial generation who were just entering the work force, and faced the prospect of waiting months or even years to find a job.

But fortunately, there are some simple and concrete steps you can take to prepare for the next recession, whenever it arrives. By having a plan in place, you can soften the blow of a recession, or even profit from it.

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

Don't Panic

Most financial advisers recommend having at least 6 months of expenses saved up in an emergency fund. This will allow you to continue paying for the basic necessities such as rent, food, and utilities should you lose your income for a period of time.

Increase Your Cash Reserves

While increasing your emergency fund, you should also be equally diligent in paying down debt. Almost all Americans have some form of debt, whether it be a mortgage, car loan, student loans, or credit cards.

Pay off High Interest Debt

There's a saying that the easiest time to get a loan is when you don't need it. And that is very true. Banks love to lend money to people who have good credit, high incomes, and lots of liquidity.

Take Out Additional Lines of Credit

Spend less than you earn. It's easy to say, but often hard to live by. If you're spending money you don't have now in the good times, it will only get harder when finances get tighter.

Live Within Your Means

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