13 Steps to Recession-Proofing Your Finances

6. Live Within Your Means

When you've finally gotten to a place in life where you can afford nicer things, it may feel as if those comforts are deserved. Experts, however, recommend spending no more than a third of your net income on discretionary expenses. If you don't know what percentage you're spending on wants versus needs, you may be overdue for a monthly budget overhaul. Stop spending that extra money and put it into savings, instead. If there's a splurge you're unwilling to give up, like your Spotify subscription, try compromising elsewhere. Ride your bicycle to work instead of taking an Uber, and keep making cuts until your discretionary spending is under control.