Richard Blake
@Richard.Blake · Updated 01 Sep. 2022

Recession is an extended period of economic contraction. It’s important to try to accumulate an emergency fund that can cover three to six months of living expenses to help you be ready for a recession, job loss, or other financial challenge.

Reach out to your creditors if you're having trouble making your debt payments and request hardship concessions.

Here are other ways how to be prepared for the recession. Let’s find out what to do during a recession. 

• Review your budget and make changes now - Before a recession hits, it's a good idea to review your budget and make changes. Look for ways to reduce your spending and increase your savings. This will help you weather the storm when the recession hits.

• Stay diversified - Don't put all your eggs in one basket. When the recession hits, it's important to have a diverse portfolio so you can weather the storm.

• Have an emergency fund to cover at least six months of living expenses - One of the best ways to prepare for a recession is to have an emergency fund. This will help you cover your living expenses if you lose your job or have a reduction in hours.

• Keep your debt manageable - It's important to keep your debt manageable during a recession. This will help you keep your finances in order and avoid defaulting on your loans.