NewsProblem Solvers


Preparing your finances for a recession

Cash money
Posted at 12:25 PM, Jul 26, 2022
and last updated 2022-07-26 12:25:41-04

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:

  1. Understand your "survival number," which is the least amount of money you need to live off of per month
  2. Invest in your savings account by adding to your emergency fund
  3. Protect your current assets
  4. Watch how much debt you have because too much will hurt your ability to get a loan
  5. Make sure your resume prepared in the event you are laid off