Here are some tips to recession proof yourself:

1. Emergency Fund

If you don’t already have an emergency fund then start one. If you already have one, then make sure you have at least 6 months of living expenses in the fund. Now would be a good time to make some contributions to the fund and increase it to meet 6 months of living expenses.

2. Budget

If you don’t already maintain financial budgets then start a budget today. Budgets puts the power back into your hands. You can manage your inflows and outflows better with a budget. A budget keeps you in check. Without a budget you will be ‘lost’.

3. Reduce Your Debts

Make additional contributions and pay off as much debt as you can (credit cards, personal loans, car loans etc - all except mortgage). Consolidate all your loans into one.

4. Trim The Fat

Using a budget, identify which areas you can cut down your expenses in. Reduce your spending on all non essentials.

5. Career

Make yourself an expert in your field…You have to get yourself in a position, where your employer starts viewing you as an important asset of the company. Do more that what you are required to in your job.

One important thing to remember is that - ‘this will pass’. Recession is only a temporary thing. Ups and downs is common in every economy. If you are financially comfortable then it is a good time to invest. If you plan to invest in stock market then invest in blue chip and every day needs stocks - example healthcare, staples etc…Certain industries like entertainment will not do well when there is a downturn in the economy.

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