There is a 100% likelihood of a recession in the US next year, according to modelling by economists.
It is most likely time to protect your finances.
Insider talked to five personal finance experts to find out how to protect your finances.
If you lose your job, the experts recommend setting up an emergency fund.
It should be enough to pay for between three and six months of living expenses.
According to the Federal Reserve, about two-thirds of Americans can cover a sudden $400 expense, but saving between $16,000 and $34,000 for months of expenses is quite a different prospect.
Jeremy Schneider, founder of the Personal Finance Club, said if you don't have three to six months' worth of expenses saved up, you're going to need to spend less and save more.
According to Steve Chan, founder of Call to Leap, getting a budgeting app may be the best way to do that. You can use these to better visualize your expenses.
It's possible to find savings by thinking about expenses. The director of Carefull, a security service for elderly people's finances, said that such an exercise requires the least amount of effort.
If you combine your car insurance and home insurance, find a cheaper cellphone or internet plan, and make your own coffee and lunch, you can save a lot of money.
Chan told Insider that paying off your highest interest credit cards in a time of rising rates is the most effective way to pay down debt.
Cutting costs like streaming subscriptions can lead to small and worthwhile savings, but they pale in comparison to the core drain on our finances
Schneider said that the cost of running a car can be a key source of debt. If there are two vehicles in your house, now is a good time to consider getting rid of one and joining a car-sharing club, buying a bicycle or scooter, taking public transport, or walking.
When we recognize what specific emotions drive our impulsive spending, we can then be more aware of our decisions.
The experts said that housing is the most expensive expense for most people and can affect your financial resilience.
It is recommended that homeowners consider renting out spare rooms or opening them up to the public.
You have a problem with your truck that's sitting outside. The problem is your rent. Getting a roommate is one of the options.
Income can be found from things that are no longer needed. It is possible to get some cash for little work by asking around your house.
It's worth taking advantage of the strong labor market that still has plenty of jobs.
The experts said that finding additional employment is the fastest way to make more money. If you can do two a week, you can get an extra $800 of income per month.
He said after one month you're already covering that major expense. The experts said that dog-walking, babysitting, answering online surveys, and gardening could bring in extra cash.
In an age of over-employment, remote working, and quiet-quitting, people are increasingly able to find time to work from home.
Financial independence can be achieved with passive income streams. It takes a lot of work to get them in place.
Drop shipping, affiliate marketing, and earning advertising income from websites are some ways you can eventually begin to build passive income.
Some people buy vending machines or properties for rent and pay over time.
Olamide Majekodunmi says it's important not to put too much money into passive income streams in the hope they will bear fruit.
It still takes a lot of work to be able to enjoy passive income. He makes money from old videos that are still watched.
Some months into a downturn, the negative effects of a recession, like falling income and higher unemployment, may not be apparent. There is plenty of time to build a new skill.
Learning search engine optimization, content-writing, and user experience design, for example, are skills that are in demand from companies and can be used as a source of income.
Majekodunmi told Insider that there are many free online courses that allow you to strengthen your skills.
Huddleston said that once your finances are on a better footing, you should begin automatically transferring your additional income into a savings account you can't easily access.
He advised to have that amount, the total amount that you're saving from all these ways that you're going to trim your expenses in half, that automatically transfers to a savings account.
The experts told Insider that the worst thing you can do is act rashly. It's time to make sure your finance is on the correct path. That doesn't mean withdrawing money from investments.
It's important not to panic if you're already an investor. Don't stop investing over a long period of time.
If you try to pack in all of them at once, you'll get overwhelmed. If you want to pay off your credit card in two weeks, you need to download a budgeting app. The rest will come.
Schneider said that households should try to keep their expenses below their income in order to increase their savings.
Wealthy people don't think about this week. They think about five years from now.
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