Experts advise on how to prepare for a recession

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BROOKLYN, NY (WIBW) -- While the COVID-19 pandemic damages the economy experts are telling the public ways to prepare for a recession.

Experts agree that Americans should not panic, instead they should prepare.

MyBankTracker lists what you can do to prepare your essential items for a recession.

Experts say to consider a dollar-cost average investment strategy. This strategy can help minimize risk when investing in the market. It invests a fixed amount of money in a certain stock or fund at regular intervals.

Another option is to review investment portfolios. Adjustments can be made, find them to safeguard your money and confirm that your portfolio is diversified. Make sure 401(k)s or IRAs don’t invest more money in stocks than prepared for. Discuss with a financial advisor if this would be beneficial based on a history of market declines. Be sure to ask how to maintain a balanced portfolio.

Strengthening emergency funds is a sure fire way to make sure you have money when hard times hit. Aim for 6-12 months of expenses. Layoffs, reduced overtime and scaled back benefits are all likely to affect workers due to the COVID-19 pandemic.

Experts also say that paying off debt will greatly help. The less debt owed the better situated you are to ride out a recession. If paying it off entirely is not an option, increase minimum payments by seeing what can be cut and then come up with a plan to pay it off in full.

Lastly consider getting a roommate. Sharing the cost of a mortgage or rent and utilities can free up the extra cash needed during financially uncertain times.

Other ways to prepare include finding a side hustle, cleaning up resumes and remaining marketable and starting to network.

More tips and tricks can be found here.