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Never heard of “recession-day preppers”? It’s a new term the Debt.com team coined to refer to people who envision another financial meltdown just over the horizon. It’s the money version of a doomsday prepper. And like doomsday prepping, recession-day prepping only sounds crazy until the next recession hits… which it inevitably will.
Whether you believe in the possibility of Recession 2018 or not, it’s a good idea to shore up your budget. If the worst happens, you’ll be glad you reinforced your finances to weather the storm. You can be the dependable, financially stable ant in a weak economy full of consumerist grasshoppers who failed to plan.
The guiding recession-proof principle: Savings good, debt bad
If you want to recession-proof your budget, your actions will revolve around two tasks:
- Reduce your debt
- Increase your savings
Less debt means less risk of default and more borrowing power in case you need it. More savings provides a bigger safety net if you encounter any issues with employment.
