Skip to content
Cha ching queen living a big life on a little budget.
  • DIYExpand
    • Clean Quickly
    • Clever Hacks With Household Items
    • Crafts & Projects
    • Home Improvement
  • Money MattersExpand
    • Make More Money
    • Spend Less Money
    • Manage Money Better
    • Reviews & Recommendations
    • Get Free Stuff
  • Eat WellExpand
    • Breakfast
    • Lunch & Dinner
    • Appetizers, Sides, & Snacks
    • Desserts
    • Food Talk
  • Live LifeExpand
    • Health & Beauty
    • Cloth Diapering
    • Family And Relationships
    • Holidays & Gifts
  • Travel TipsExpand
    • Destinations
    • Attractions
    • Travel Hacks
  • About
  • Subscribe
Cha ching queen living a big life on a little budget.
ByGreg Wilson, CFA Updated onJanuary 30, 2025 Reading Time: 13 minutes
Home » Galleries » Are We In A Bubble? 20 Financial Moves to (Try To) Survive the Next Recession 

Are We In A Bubble? 20 Financial Moves to (Try To) Survive the Next Recession 

This post may contain affiliate links. Read the disclosure.

Share with your friends!
FacebookPinterestMessengerWhatsAppEmailShareFlipboardRedditSMSX
A woman looks tired while sitting at a desk with a laptop, a document in one hand, and a calculator nearby.
Image Credit: DepositPhotos

Recessions are an inevitable part of the economic cycle, but many people remain unprepared when the next one hits. Understanding the risks and being proactive are essential for weathering economic downturns. 

In fact, based on a report by the Federal Reserve, 63% of Americans would have to rely on credit cards, personal loans, or borrowing from family or friends to cover a $400 unexpected expense. 

This lack of preparedness can leave people vulnerable to the financial turmoil caused by recessions, such as sudden job losses or rising living costs. As we have seen time and again, ignoring these warning signs can lead to deeper debt, stress, and long-term financial instability.

In this article, we’ll run through actionable steps you can take now to protect your finances.

You’ll learn how to build a recession-proof strategy that safeguards your financial future like strengthening your emergency fund and paying down high-interest debt, even securing your job and investing wisely. 

Let’s get started and learn how to secure your financial future!

Table of Contents

  • Strengthen Your Emergency Fund
  • Pay Down High-Interest Debt
  • Secure Your Job and Explore Recession-Proof Employment
  • Review and Adjust Your Budget
  • Invest Wisely During a Recession
  • Stay Informed and Take Advantage of Government Resources
  • Take Care of Your Mental Health During a Recession
  • Build Multiple Income Streams
  • Create a Recession-Proof Investment Plan
  • Improve Your Financial Literacy
  • Plan for Healthcare Costs
  • Refinance Your Mortgage or Loans
  • Cut Unnecessary Subscriptions and Services
  • Downsize and Declutter to Save Money
  • Evaluate Your Insurance Policies
  • Build and Strengthen Your Professional Network
  • Focus on Skills Development
  • Reduce Transportation Costs
  • Build a Recession-Proof Mindset
  • Invest in Home Energy Efficiency
  • Securing Your Financial Future

Strengthen Your Emergency Fund

Yellow sticky note with "Emergency Savings" written on it, surrounded by a pen, binder clip, papers, and US dollar bills on a wooden surface—subtle signs of a wealthy person who values financial security.

Economic uncertainty can lead to sudden job loss or pay cuts. Having an emergency fund with 3-6 months’ worth of living expenses can be the safety net you need to avoid spiraling into debt. 

Unfortunately, a 2024 Bankrate survey found that 59% of Americans can’t cover a $1,000 emergency expense. The goal is to not be part of that statistic. Building your emergency fund, even on a tight budget, is possible. 

Start with small, achievable savings goals, like saving $50 a week. Automating your savings can help make it consistent. Temporarily cutting back on non-essential expenses like dining out or entertainment will speed up the process and add to your security.

17 Financial Traps You Should Avoid If You’re Over 50

Pay Down High-Interest Debt

Best Ways To Eliminate Debt

Debt becomes more challenging to manage when your income is uncertain. High-interest debts like credit cards can trap you in a cycle of payments that become difficult to maintain during a recession. 

To make things worse, rising interest rates can increase your debt load, making it harder to get ahead financially. To avoid being overwhelmed by debt, prioritize paying off high-interest obligations first. 

The avalanche or snowball method can help you tackle them strategically. Consider debt consolidation if you can lower your interest rate, and try to avoid taking on new debt unless absolutely necessary.

How to Get Out of Debt Quickly

Secure Your Job and Explore Recession-Proof Employment

A smiling person holds a laptop in a modern office with bookshelves and art in the background. Another individual is working on a laptop at a desk behind them.

Protecting your job during economic uncertainty starts with becoming indispensable. Learn new skills, volunteer for projects, and stay flexible in adapting to change. Being a valuable asset at work increases your chances of staying employed during tough times. 

Staying informed about industry trends and networking with professionals can also help you stay competitive. Consider exploring recession-proof jobs or side hustles to diversify your income. 

Industries like healthcare, education, and essential services tend to remain stable during downturns. Starting a side hustle like freelancing or gig work can also provide additional income if your primary job becomes unstable.

12 Reasons Companies Do Not Hire Workers Over 60 

Review and Adjust Your Budget

Which Budget Style Works For You. Stacks of Cash, iPhone Calculator and Laptop

Creating a recession-proof budget starts with separating your essential expenses from the non-essential ones. Identify necessities and cut back on luxuries. For example, the average U.S. household spends about $3,000 a year dining out. 

Reducing this habit could free up a significant amount for savings or debt repayment. Be smart with your spending by seeking out discounts, using coupons, or buying in bulk to maximize value. 

Take advantage of cashback and reward programs to stretch your dollars further, but be mindful not to overspend just for the sake of earning rewards.

5 Reasons to Start Budgeting As Soon as Possible

Invest Wisely During a Recession

Best Investments How to Invest Money without Buying Stocks laptop computer

Recessions can actually be a good time to invest if you have a long-term strategy in place. Stocks often drop in value, allowing you to buy at a discount. 

One smart strategy is dollar-cost averaging, where you invest a fixed amount regularly, which can help balance out market volatility over time. It’s also essential to diversify your investments to minimize risk. 

A balanced portfolio that includes stocks, bonds, and real estate can help weather economic downturns. Adding safer assets, such as bonds or gold, is another way to protect your wealth as these tend to hold their value when the market is volatile.

Investing Basics: How To Get Started Investing

Stay Informed and Take Advantage of Government Resources

A hand holding a red pen fills out a form labeled "Unemployment Benefits Application Form" on a wooden surface with a clipboard and a notebook nearby.
Image Credit: iStock

Understanding economic trends can help you make informed decisions. Keep an eye on key metrics like GDP, unemployment, and inflation to gauge the economy’s health. These indicators can guide you in adjusting your financial strategies accordingly.

During a recession, various government resources are available to help. Programs such as unemployment benefits, food assistance, or stimulus packages are designed to support people facing economic hardship. Be aware of what’s available and apply if you qualify.

🙋‍♀️If you like what you are reading, then click like and subscribe to my newsletter. We share tips to waste less time and money.

Take Care of Your Mental Health During a Recession

woman running how to find the best deodorant for women blog post

Financial stress is often one of the biggest burdens during a recession, and it can take a toll on your mental well-being. Preparing ahead can help reduce this anxiety and bring some peace of mind.

Managing financial stress starts with self-care. Establish a routine that includes mindfulness or activities that help you unwind. Avoid checking financial news constantly, as it can heighten anxiety. 

If things feel overwhelming, consider talking to a financial advisor or counselor for professional advice and emotional support.

The 31 Hardest Parts of Getting Older, That No One Really Wants To Talk About (With Video)

Build Multiple Income Streams

A woman with shoulder-length hair is looking at a laptop while sitting at a table. A notebook is open in front of her. She is wearing a light blue sweater.

Relying solely on one source of income during a recession can be risky. Job losses or pay cuts can happen suddenly. Building multiple income streams gives you more security and financial flexibility.

Creating additional revenue streams might mean starting a side hustle. Freelancing, consulting, or selling products online are great options to explore. You can also look into investing in income-generating assets like rental properties or dividend-paying stocks.

Take Control of Your Money and Reap the Benefits Of Financial Planning

Create a Recession-Proof Investment Plan

What are some of the best investments Learn how to invest money without buying stocks

Having a long-term investment plan is essential, especially during a recession. Diversify your portfolio with stable investments like bonds or real estate alongside riskier ones like stocks. This helps balance potential losses while still allowing for growth.

It’s also important to avoid panic selling. When the market drops, selling off investments often locks in losses. Stick to your strategy and stay calm, remembering that markets typically recover over time.

18 Ways to Know You’re Financially Ready for Retirement: Be Secure in Your 60s

Improve Your Financial Literacy

A woman with a blanket wrapped around her shoulders sits on a sofa, using a calculator and reviewing paperwork on a coffee table in the living room, concerned about things becoming too expensive.

The more you understand personal finance, the better decisions you can make during an economic downturn. Financial literacy can be your biggest asset when managing money becomes critical.

Take the time to improve your knowledge by reading books, taking online courses, or following trusted financial blogs. Podcasts are another great way to get ongoing tips and insights without overwhelming your daily routine.

13 Pieces of Horrible Financial Advice (That Most People Still Believe)

Plan for Healthcare Costs

A healthcare provider measures the blood pressure of an older adult woman using a sphygmomanometer in a clinical setting, reminding her to stop doing these if 75: strenuous exercises and unapproved medications.

Healthcare can become a financial burden, especially during a recession. Planning for these costs will help you protect both your health and your wallet.

Start by reviewing your health insurance plan to ensure you have the best coverage at an affordable price. If eligible, consider opening a Health Savings Account (HSA), which provides tax benefits for medical expenses.

🙋‍♀️Sign up for GoodRX through this link and receive a free prescription discount card and new users receive a $5 Visa Prepaid Card 💪

Refinance Your Mortgage or Loans

mortgage is basically a home loan

Refinancing your mortgage or other loans before a recession hits can free up cash by lowering your monthly payments. This can make it easier to pay off debt or save for the future.

To maximize savings, compare rates from different lenders and consider shortening the term of your loan. This strategy can help you pay off debt faster while reducing the amount of interest you’ll pay in the long run.

The Best Mortgage Housing Hack, Despite Rates Rising

Cut Unnecessary Subscriptions and Services

An older man is riding a stationary bike in a gym.

Subscription services can add up without you even realizing it. Take the time to review all of your current subscriptions. Maybe the last time you went to the gym was months ago, or you just don’t have the time to read that paid newsletter. 

Many of these subscriptions, like streaming services or gym memberships, can easily be paused or canceled. Prioritize essential services, like your phone or internet, but look for ways to reduce costs. 

You might find cheaper alternatives or bundled services that can lower your monthly expenses. 

25 Sneaky Fees Companies Don’t Want You to See (And How to Dodge Them)

Downsize and Declutter to Save Money

A woman stands next to stacked cardboard boxes, writing on a notepad. A potted plant is visible in the background.
Image Credit: Pexels

During a recession, downsizing your living situation can lead to big savings. Reducing your housing costs frees up money for savings or paying down debt like maybe moving to a smaller space or cutting unnecessary expenses. 

A smaller home often means lower rent or mortgage payments, along with cheaper utilities and maintenance costs. Decluttering can also help you save or make extra cash. Selling unwanted items like furniture, electronics, or clothing can generate additional income. 

You can use the funds to build your emergency fund or invest in more recession-proof assets. Plus, decluttering helps simplify your life, allowing you to focus on the essentials during challenging times.

Declutter Your Life: My One-Year Rule Could Save You Thousands (Video)

Evaluate Your Insurance Policies

Best Ways to Save on Car Insurance

Many people pay more for insurance than they need to. Take a closer look at your auto, home, and life insurance policies to see if you’re overpaying for unnecessary coverage. Sometimes, policies are packed with extra features you might not need, like high deductibles or extra riders.

To save on insurance costs, shop around and compare quotes. You might find a better rate with a different provider. Bundling your insurance policies like auto and home can also lead to discounts. 

Increasing your deductibles or exploring usage-based insurance could further reduce your premiums without sacrificing coverage.

Types of Insurance Policies Everyone Should Consider

Build and Strengthen Your Professional Network

Two men in business attire shake hands and smile at the camera in a modern office setting, a poignant moment amidst growing discussions on why companies do not hire over 50.

During a recession, your professional network can be a lifeline. Having strong connections can open doors when the economy contracts even if it’s finding new job opportunities, collaborating on projects, or simply getting advice. 

Networking can also keep you informed about industry trends, helping you stay ahead in your field. Start by attending industry events, webinars, or workshops, and don’t hesitate to reach out to people in your field. 

Keeping in touch with colleagues or former employers through social media and email helps maintain those valuable connections. Expanding your network now ensures you’ll have support if things get difficult later.

🙋‍♀️If you like what you are reading, then click like and subscribe to my newsletter. We share tips to waste less time and money.

Focus on Skills Development

Person using a laptop on a wooden desk with books, a notebook, an iPhone, and a framed photo nearby.

Upskilling is critical when jobs become scarce. Having a broader skill set makes you more valuable to your employer, increasing your job security. Employers are more likely to keep those who can wear multiple hats or contribute in versatile ways. 

Upskilling can also position you for roles in industries that are more recession-proof, like healthcare or technology. Developing new skills doesn’t have to break the bank. Take advantage of free or low-cost online courses through platforms like Coursera, Udemy, or LinkedIn Learning. 

You can also explore on-the-job training or mentorship programs offered by your current employer. Investing in your skills now will pay off when the job market tightens.

Teaching English as a Second Language: A Lucrative Side Hustle

Reduce Transportation Costs

A silver Amtrak train is parked at a station with palm trees and tall modern buildings in the background. People are waiting on the platform, possibly having secured cheap Amtrak tickets for their journey.

Transportation is often one of the biggest household expenses, and during a recession, saving on gas or commuting costs can free up a substantial amount. Carpooling, using public transit, or even working from home are great ways to cut back on transportation-related expenses.

To reduce car-related costs, keep up with regular vehicle maintenance to avoid expensive repairs down the line. Look for ways to save on auto insurance, too. 

You may qualify for lower rates if you drive less, or you could explore reducing your coverage for additional savings. Keeping transportation costs in check leaves more room in your budget for savings or essentials.

15 Simple Tricks to Slash Your Electric Bill

Build a Recession-Proof Mindset

A person in a grey shirt is holding multiple U.S. dollar bills in both hands.

Living during a recession isn’t just about money, it’s also about having the right mindset. Developing mental resilience can help you handle the financial challenges that come your way. 

Instead of focusing on what you can’t control, turn your attention to areas where you can make a difference, like cutting expenses, building savings, and growing your skills. Staying motivated during tough times can be challenging, but setting small, achievable goals keeps you on track. 

Practice mindfulness or meditation to manage stress, and surround yourself with supportive friends or mentors who can help you stay positive. A strong mindset will help you make better decisions, stay productive, and push through economic uncertainty.

13 Common Habits of Millionaires. How Many Are You Doing? (With Video)

Invest in Home Energy Efficiency

Image Credit: Pexels

One often overlooked way to save money during a recession is by investing in home energy efficiency. Simple upgrades like switching to LED lighting, installing a programmable thermostat, or sealing drafty windows can lower your utility bills and provide long-term savings. 

These improvements not only reduce your monthly expenses, but they also increase your home’s value, which can be beneficial if you ever decide to sell.

There are often tax credits or rebates available for energy-efficient upgrades, so take advantage of those to reduce the upfront cost of these investments. Making your home more energy-efficient is a win-win, it saves you money while helping the environment.

How to Improve the Energy Efficiency of your Home HVAC 

YouTube video

Securing Your Financial Future

An elderly man in a suit sits at a table with a laptop, looking at a stack of dollar bills with a smile, reflecting on how life priorities shift with age. A cup and a lamp are visible in the background.

Preparing for a recession may feel daunting, but breaking it down into actionable steps makes it manageable. Strengthening your emergency fund, paying down high-interest debt, and building multiple income streams are key strategies to protect your financial well-being.

Remember, small, consistent changes can lead to significant progress over time. By taking proactive steps now, you can reduce financial stress and maintain stability during tough economic times. 

The time to act is now, so start preparing today for a more secure tomorrow.

🙋‍♀️If you like what you just read, then subscribe to my newsletter and follow us on YouTube.👈

  • The 10 Best and Worst States for Financial Literacy in 2024
  • 17 Money Saving Tips Are Actually Wasting Your Money
  • Save Money in Retirement: 28 Household Items You Didn’t Know You Could Borrow from the Library
  • Food Shortages Ahead? 20 Items You Should Buy To Prepare
  • Are You Earning Enough? Here’s How Much You Need to Live Comfortably in Your State

AI was used for light editing, formatting, and readability. But a human (me!) wrote and edited this.

Trending Now

How Often Should You Clean Your House: Woman Cleaning Oven

How Often Should You Clean Your House? Room By Room Tips

Woman Doing Laundry Using Earth Breeze Laundry Sheets

Earth Breeze Review: Dehydrated Laundry Sheets

amazon prime box

My Secrets: How To Get Amazon Coupons, Discount Codes, Promo Codes, Free Stuff, and Deals

Text reads: "18 DIY Homemade Household Products you can easily make at home" in colorful handwritten-style font on a dark background.

18+ DIY Household Products You Can Make at Home

Amazon Gift Card

How To Save On Amazon Prime Membership + Prime Benefits

What To Teach Kids About Money

What To Teach Kids About Money: An Expert Weighs In

As Seen On
bloomberg logo
business insider logo
msn logo
usa today logo
family handy man logo
yahoo finance logo

  • Home
  • About
  • Press
  • Contact
  • Subscribe
  • Disclosure and Terms of Service
  • Cookie Policy
  • Privacy Policy
  • Web Stories
Email Facebook Twitter Instagram Pinterest

© 2025

ChaChingQueen does not provide individual or customized medical, legal, or financial advice. Since each individual's situation is unique, a qualified professional should be consulted about your specific situation before making financial and/or medical decisions.

Cha Ching Queen is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com.

  • DIY
    • Clean Quickly
    • Clever Hacks With Household Items
    • Crafts & Projects
    • Home Improvement
  • Money Matters
    • Make More Money
    • Spend Less Money
    • Manage Money Better
    • Reviews & Recommendations
    • Get Free Stuff
  • Eat Well
    • Breakfast
    • Lunch & Dinner
    • Appetizers, Sides, & Snacks
    • Desserts
    • Food Talk
  • Live Life
    • Health & Beauty
    • Cloth Diapering
    • Family And Relationships
    • Holidays & Gifts
  • Travel Tips
    • Destinations
    • Attractions
    • Travel Hacks
  • About
  • Subscribe
Facebook X Instagram
Search
Share to
BufferCopyEmailFacebookFlipboardHacker NewsLineLinkedInMessengerMixPinterestPocketPrintRedditSMSSubscribeTelegramTumblrXVKWhatsAppXingYummly