13 Steps to Recession-Proofing Your Finances

11. Focus on the Big Picture

Preparing emergency savings and paying off debts is sound advice, but other aspects of preserving your finances may not be so straightforward. The stock market is a volatile creature and, during a recession, you might notice your earnings diminish at an alarming rate. The stock market can fall 40 percent during a recession, but that doesn't mean it won't pick up again. Be prepared to lose money when times are tough and know when to purchase new stocks as prices fall. If you decide to unload all of your cheap stock at the height of a recession, you could end up losing more than you realize. Don't make any rash decisions that could jeopardize your nest egg.