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A recession isnt something many consumers welcome.
These economic pullbacks can impact many, from job losses to stricter lending practices.
Such a statement concerns many Americans still remembering the Great Recession of 2007 to 2009.
Theres no telling if a pullback will happen, but there are ways to recession-proof yourfinances.
These are five steps to take today for Americans concerned aboutthe financial future.
Boost Your Savings
Its always a wise move to have an emergency fund.
Experts generally suggest having three to six months of living expenses saved in one.
Now is the time to increase savings if youre behind that number or want to increase beyond the recommendations.
Recessions often result inincreased job lossesas businesses reduce spending.
Ample savings provide a safety event if the worst happens.
Its best to park the savings in a high-yield savings account to maximize the interest received.
Reduce Debt
Its always smart to pay off high-interest debt.
This is especially so for Americans afraid of a possible recession.
Debt keeps you from achieving other goals, such as saving or investing.
Reducing or eliminating debt bolsters your finances and frees up available credit for use in aworst-case scenario recession.
Furthermore, its typically more difficult to obtain new credit during an economic downturn.
Panic is a common emotion, but dont allow it to drive possibly unwise decisions.
Its best to review your portfolio to ensure its in line with your risk tolerance and goals.
Proper diversification is essential and must be paired with the knowledge that the stock markethistorically creates positive returnsafter pullbacks.
Grow Yourself
Recessions often result in businesses curbing spending, including job cuts.
The job market is still growing, with 151,000 non-farm jobs being added in February, according to theU.S.
Bureau of Labor Statistics.
However,more Americans are concernedabout job prospects due to current economic uncertainty.
Growing professionally is a vital way to prepare for Americans concerned about job loss.
Investing in growing current professional skills or learning new skills is a good way to prepare yourself.
This makes you more valuable and marketable in the event of growing job cuts.
Thats even more so the case in light of a possible recession.
The latter is more important if theres fear of a job loss.
At least 56% of people polled began a side hustle to gain financial security, according toAdobe Express.
Dont just spend the extra income.
Devote earnings to growing savings and pair that with wise spending to maximize potential.
Growing numbers of economists are predicting an increased likelihood of a recession.
President Trump has introduced economic uncertainty with tariff actions.
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