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Step 1
Think about how you can recession-proof your business. If you are running a business, determine how you can keep it running with some type of service work, or sell a product that customers will purchase no matter how difficult the economy.
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Step 2
Consider how you will recession-proof your personal finances. Find a way to put money into an emergency fund every month and try to save six months worth of living expenses.
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Step 3
Set a budget and monitor your spending on a daily basis to prepare for a down economy. Write down every expense you have or you anticipate so there is nothing that will keep you from staying on budget.
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Step 4
Control your income by saving for large long-term bills. Put a specified amount away every month to pay the semi-annual and annual bills such as insurance; you usually receive a discount for paying in full instead of paying monthly.
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Step 5
Diversify your investments with stocks and bonds to prepare for a down economy. Consider moving a large amount of your stock money into bonds during a threat of a down economy, because bonds usually go up when interest rates go down.
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Step 6
Make a change of job plan in case your job is lost temporarily or permanently. Check out professional contacts, have your resume up to date and keep your eyes open for the signs of lay off.
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Step 7
Prepare emotionally for a down economy so you don't panic if it happens.
