How to Prepare for a Recession: Financial Moves You Can Make Today

When the economy starts to wobble, it’s normal to feel overwhelmed. News about job losses, rising prices, or market volatility can make the future seem unpredictable. But preparing for a recession isn’t about giving in to fear — it’s about taking back your sense of control. With a few simple steps, you can build the confidence and peace of mind that comes from knowing you’re ready for whatever comes next.

Recognize the Early Signs

In simple terms, a recession is a period of economic slowdown — people spend less, businesses may cut back or close, and jobs can become harder to find.

Some early warning signs include:

• Rising prices
• Job layoffs or hiring freezes
• Tighter credit (it becomes harder to borrow money)

If you’re noticing these things in your community or the news, it may be time to start preparing — and that’s a smart, proactive step.

Steps to Strengthen Your Financial Foundation

There are several small but impactful steps you can take to stabilize your financial situation as much as possible. 

Focus on Emergency Savings (Even a Little Helps!)

You don’t need thousands of dollars to get started. Saving $5 or $10 at a time can make a difference. A helpful first goal is building a starter emergency fund. Set a small goal of $250 to $500 — enough to cover a surprise bill, small repair, or groceries if times get tight.

Keep your savings liquid, meaning easy to access when you need it. While it might be tempting to invest, a recession is a time to prioritize safety over speed. Consider putting your emergency savings in:

• A regular savings account
• A money market account
• A short-term CD (if you’re sure you won’t need it before the term ends)

Trim Costs Gently

Cutting back doesn’t have to feel painful. Look for low-stress ways to reduce spending — maybe that’s cooking more meals at home, pausing a subscription you don’t use often, or switching to a lower-cost phone plan.

Remember: This is about protecting your peace while staying flexible. The goal is to adjust spending while still maintaining things that bring you joy.

Explore Income Opportunities

If you’re in a position to boost your income, even temporarily, it can make a big difference. That might look like:

• Taking on a side gig (freelancing, delivery apps, tutoring, etc.)
  • Be cautious if you’re asked to pay upfront fees or provide sensitive personal information too soon. Legitimate side gigs should clearly explain what work is required, how you’ll be paid, and what tools or skills are needed. Trust your instincts—if something feels off or too good to be true, it’s worth investigating further.
• Using community resources to stretch your budget
• Finding free or low-cost training to build new skills

This isn’t about adding pressure — it’s about giving yourself options and building resilience.

Know Your Support Systems

Many communities and organizations offer support — and knowing where to turn before you need help can save time and stress later.

Look into:

• Local food banks through religious or community organizations
• Utility assistance programs
• Free financial counseling/coaching
  • Check out our SaverPerks partners, MMI & Advisers Give Back.

Reaching out for help is a smart and courageous move. These resources exist to support people exactly like you — thoughtful, proactive individuals who are simply preparing for what’s ahead.

Mental Health Matters Too

Financial uncertainty can weigh heavily on your mind. If you’re feeling anxious, stressed, or overwhelmed, you’re not alone.

Give yourself grace. Even just taking one step (like reading this article!) is an act of strength. Talk to someone you trust, take breaks from the news, and know that support is out there for both your finances and your emotional well-being.

Start Small, Stay Strong

You don’t have to have all the answers today. But the steps you take now, even the small ones, can build a stronger, more confident tomorrow. So take a breath. Pick one action, however small, and begin.