How To Survive A Recession

Step 1: Secure Your Job

Strengthen your connection to your company. Let your boss know you can be counted on during hard times. Better yet, work your way toward a recession-proof job. Education and health services a well isolated from recession woes. If you're working as a teach or in the health business, you shouldn't have to worry about losing your job.

Step 2: Secure Your Finances

In a recession, you want to have your money in the safest possible investment, cash. Money-market mutual funds are best. If you do own stock and some of it tanks, don't sell in a panic. Traditionally, stock markets go through a "V" shape. The first stroke of the V is a loss of value, sometimes 10%. The second stroke of the V is the recovery. Keep your eye on the long run, because you very well can get it all back in 1 year.

Step 3: Secure Your Home

Even if you or your spouse lose your job, hang on to your house. Ask your lender about forbearance, which postpones a loan payment. Refinancing will lower a mortgage interest rate. A repayment plan will adjusts the amount due and time frame. Bottom line: recession is temporary. Make the right choices, and you'll survive.