We keep hearing the "R" word and a lot of us don't know what to do to brace ourselves for this. While there are signs the American economy could head into a recession, there are protections you can put in place to ease the financial hit.
1. Build up your savings. Three to six months of household expenses should be saved. Easier said than done, but if you allocate a set amount that you would normally spend on luxuries, it'll add up quicker than you think.
2. Paying Debt. Now is the best time to pay down or pay off debt in order to avoid suffering from rising prices and decreasing wages. This is something I've been working on. Obviously, high interest debt should go first, then once you pay down one, apply that payment to the next bill.
3. Don’t exit the stock market. Investing is risky, but liquidating your retirement or other investment accounts can harm your finances for years.
4. Upgrade your skills. When the economy slows, job competition rises. Workers with more skills are less likely to be laid off and more likely to find work. There are plenty of courses you can take online that can rapidly build your skillset. Plus it could inspire you to begin a side hustle that may turn into a new career path.