A recession may be on the horizon.
Uncertainty surroundingPresident Donald Trumps tariffsis creating chaos in the stock market.Inflationis on the rise again.
And consumer confidence is tanking, reflected in spending trends.
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Investors and everyday Americans are holding their breath.
After all, a recession could mean morejob cutsand tough times for people already struggling to make ends meet.
Worried About a Recession?
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Ask one of these companies to help…
1.
Pay Down High Interest Credit Card Debt
Its getting more expensive to carry credit card debt.
Get Ready for the Job Market
When the economy slows down, the job market gets more competitive.
Youll need to hustle and brush up on your professional skills to stand out in a competitive job market.
Its smart to start increasing your value now, before a recession hits.
Look for training and education opportunities your current employer will pay for.
Showing initiative can help you retain your current position and add some job security during uncertain times.
If a wave of layoffs impacts your company, youll have a leg up on your peers.
(And make more money for you in ahigh-yield savings account, thanks to hight interest rates.)
The golden rule is to save up about six months worth of expenses in anemergency savings fund.
Lets say your expenses (rent, bills, food, etc.)
average around $3,000 a month.
If it feels intimidating to save six months worth of expenses, start by creating smaller goals.
Focus on saving $500 and build from there.
Earn Extra Money
Earning extra income is the smartest way to protect yourself from a recession.
Dont Panic Sell Inside Your 401(k)
Stocks have taken a hit in 2025.
It feels scary, but dont panic.
During a recession, too many investors get spooked and sell off their assets early.
Remember: Losses inside your portfolio only become real once you sell.
And recessions dont last forever.
If youre still years or even decades away from retirement, a bear market isnt a bad thing.
In fact, it can be a great buying opportunity because you could purchase assets at lower prices.
Buying low so you’re free to sell high makes sense.
So does holding on to stocks for the long run.
Its known asdollar cost averaging.
Simply put, a bull market is when stock prices go up at least 20% after declining.
A bear market happens when stocks drop at least 20% from a recent high.
Rachel Christian is a Certified Educator in Personal Finance and a senior writer for The Penny Hoarder.
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