Its an unhappy fact of life: Sooner or later, the economys going to take another dive.
In the last U.S. recession, millions of Americans lost their homes, jobs or businesses.
What Is a Recession?
Unsplash
Technically, recessions occur when the economy declines for at least six months in a row.
That typically leads to serious job losses and huge stocks market drops.
Our most recent downturn was called the Great Recession because it was the worst one since the Great Depression.
The Great Recession ended in 2009 16 years ago.
The stock market has been volatile, tariffs are causing uncertainty, consumer confidence is falling.
And inflation is ticking up again.
6 Tips for Recession Preparation
Heres how to prepare for a recession.
Dont Panic
This is probably the most important piece of advice when were talking about preparing for a recession.
When youre looking at your accounts, verify youre diversified.
Are you too heavily invested in stocks?
If youre nearing retirement, put more of those funds into safer investments like US Treasury Bills.
Just dont get carried away with that strategy.
If you have decades of working ahead of you, weather the storm.
Keep your retirement funds in stocks so you dont miss out on the markets long-term growth.
Start Hoarding Your Pennies
Could you live off your savings for six months?
Oh, and if you havent already, open ahigh-yield savings account.
Thats why its best to diversify your income if possible.
The simplest way to do that is by starting a side gig.
Not sure where to start?
Heres The Penny Hoardersroundup of the best 28 side hustlesto make you more money.
Non-essential employees getlaid offfirst, so focus on making yourself indispensable.
Dont sleep on opportunities toacquire new skillsor more responsibility.
Stay in the Hunt
Do you like your current job?
Just dont get lulled into complacency.
Be ready to look for a new job if you have to.
Start with updating your resume and your LinkedIn page and internet.
More From The Penny Hoarder:Our Picks for The Best Savings Accounts for This Month
6.
It just makes sense to pay down your high-interest debt, which will free up money for the future.
More From The Penny Hoarder:Everything you should probably Know About Debt