Recession is Coming. 9 Tips to Survive it.

1. Budget. Account for every incoming and outgoing dollar to enable you to set your goals, reach your goals, and show you where you can cut back if needed. 

2. Never lease a car. A terrible financial decision at any time, it is even worse in a recession. Drive the old car another year or two. If it fails, buy a used car and keep it longer than normal.

3. Pay yourself first. When budgeting everyone seems to list home and car payments first-change that order and budget in 5-10% of paycheck net to savings, and if you get a raise, put a portion of it into savings. 

4. Cash is king. Hold off on that new car or home improvement for a while and build a stronger cash reserve. Go against the grain-if you have a 4% or lower fixed rate mortgage, just pay the minimum payment because inflation is much higher than the fixed dollar cost of the mortgage, and conserve the cash.

5. Get rid of credit cards. Use 1 card, search for a low interest rate, and leave it locked away to avoid temptation. Then, if you have other cards whose interest rate is higher than the inflation rate, work on paying them off first

6. Do not use a home equity line for anything. If things get really rough and you miss a car payment they will repossess your car. If you were so foolish as to use your home equity for non-home items, and then you miss a home equity payment they will take your home. Which is more important your car or your home?

7. Get that cash out of checking and put it anywhere else safe, Banks are notoriously slow in raising interest rates, so go to an online money market account . Several are paying nearly 3% now versus bank savings accounts paying less than ½ of 1%.

8. Set a long term goal of being debt free at 65. This simple idea will free you from worrying about future recessions.

9. Maximize retirement contributions. This seems like strange advice, but if the stock market is in collapse it is the time to invest.