NORFOLK, Va. - For months, the country has been closely watching the economy and fearing a recession.
Many people panic when they hear the word, but do you know what a recession really is? The informal definition is when there are two consecutive quarters of negative economic growth.
In the first quarter the economy shrank 1.6% This Thursday, the country is supposed to hear how the second quarter fared. If the economy shrank again, it could mean the recession has arrived.
While that can be a bit scary, the News 3 Problem Solvers want to make sure that you are financially ready in the even of a recession.
Financial experts said now is the time to review your finances.
Here's how to create a recession-proof plan:
- Understand your "survival number," which is the least amount of money you need to live off of per month
- Invest in your savings account by adding to your emergency fund
- Protect your current assets
- Watch how much debt you have because too much will hurt your ability to get a loan
- Make sure your resume prepared in the event you are laid off