13 Steps to Recession-Proofing Your Finances

2. Calculate Essential Monthly Expenses

Monthly expenses will add up quickly if you're not careful. That mid-tier video streaming package might not seem expensive, but when the cost of electricity goes up in the summertime, you may find yourself a little short on cash. Knowing your fixed expenses is crucial to surviving all seasons and avoiding surprises. Go through all of your monthly expenses and separate your needs—such as utilities, rent, and auto insurance—from your wants, like gym memberships or subscription services. Once you realize how much cash you need for the basics, you can start trimming unnecessary expenditures and saving money.