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The trouble with a strong economy is that you can’t know for certain when it will go the other way. Yet, when it does, it can have a dramatic impact on your finances, from investments to  income to standard of living. Planning for the tough times is not only wise, it is immensely easier doing it in a good economy than when the hard times have already hit. As the old saying goes:

“[Fools] don’t plan to fail, they fail to plan.”

Use the strategies below to buckle down and tackle any curve balls a recession may throw your way.

1. Check your emergency fund: Ensure you have 3 - 6 months of expenses stored in a safe, accessible interest-bearing account. If you’re not quite there yet, make a renewed effort to top off this critical safety net.
2. Update your resume: If times get tough or there is uncertainty surrounding your job, you want to make sure your resume is ready when you need it. Refresh your work experience, education history, skills and accomplishments, and check your contact details to make sure they are up to date.
3. Be visible and valuable at work: Be seen, look busy and add value to demonstrate to your boss and others why you’re important. It’s good to be viewed as being indispensable, especially when decisions to cut back or downsize are being made.
4. Continue to build your network: In good times or bad, keep in touch with past colleagues, college buddies and acquaintances. They are your best references and the fastest way to land a new job or project in a tough market.
5. Pay down your debt: Don’t get caught with your pants down. Make a concerted effort to clean up your liabilities by paying down your debt starting with high-interest credit cards and collateralized loans.

And, if you believe you’ve already entered a recessionary market:

1. Take advantage of lower interest rates: A hallmark of a slowing economy, interest rates start to dip during tough times. Take advantage of lower rates by locking into your mortgage and paying off any debt before rates start to climb again.
2. Exercise caution when buying / selling property: Use the weak economy to your advantage when making decisions about real estate. If you’re selling your home, wait for the slowdown to pass to improve your chances of getting a higher offer. If you’re buying, there may be deals out there, but don’t overextend yourself in the pursuit of your dream home.

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