Preparing for a recession includes saving, having an emergency fund, and a diversified portfolio
From Yahoo Finance: 2025-05-25 08:00:00
- Recessions are inevitable in a capitalist economy, causing job loss, lower wages, and growth opportunities. Trump isn’t ruling out a recession this year, sparking concerns about wallet impact. Financial stability during a recession requires preparation and signs of being able to handle it without losing everything.
- Living below means, saving for retirement, and having an emergency fund are vital for recession readiness. Experts advise having at least 3 months’ worth of savings for emergencies, while Suze Orman recommends 12 months. A well-diversified portfolio is crucial for weathering the stock market impact of a recession.
- Job loss is common in recessions, requiring a plan for income loss. Apply for unemployment insurance, have items to sell, cut nonessential expenses, and consider a side hustle or temp jobs. Avoid panic selling stocks during a recession, as markets eventually recover, and consider buying high-value stocks at record lows.
Read more at Yahoo Finance: 5 Key Signs You Can Weather a Recession and Come Out Financially Stable