A recession can wreak havoc on your finances.
So its understandable if youre worried by recent headlines.
Meanwhile, layoffs of federal workers is expected to lead to higher unemployment.
If youre worried about a recession, there are steps you might take to safeguard your money.
But youre probably facing some tough choices since your paycheck will only stretch so far.
One big decision to make: Should you save money or pay down debt toprepare for a recession?
Financial planners typically recommend a six-monthemergency fund, but thats just a general rule.
The exact number you should aim for depends on your personal circumstances.
Youre also less likely to need to raid your retirement funds early to meet your short-term needs.
Paying off debt will free up money in your monthly budget and save you money on interest.
But here are some situations when you may want to prioritize saving over debt payoff, or vice-versa.
She writes the Dear Penny personal finance advice column.
Send your tricky money questions to[email protected].
