Mike Hennessy, founder and CEO of financial advisory firm Harbor Crest Wealth Advisors in Fort Lauderdale, Florida, spoke with Business Insider for this December 2019 article "8 ways to recession-proof your finances, according to experts."
Many experts predict a recession to be on the horizon in the U.S. Whether or not that's the case, there are a few steps you can take to start preparing your money to survive a downturn. Financial experts recommend strategies such as getting rid of as much debt as possible, understanding how much money it takes it run your household, and diversifying your income streams and your investments.
Mike Hennessy's tip was don't stop networking. He said it's often easy to become complacent after landing a job that feels perfect, but in order to make sure you're covered if the economy takes a dive, you should always be trying to make new professional connections.
"Stagnant professional growth is akin to the effects inflation has on your cash," he said. "It's not visible in a single day, but at some point in the future you will wake up with way fewer assets and skills than you thought you had. Who knows, that one business card you give at a networking event may be the key to a new position if the tides turn in the economy and at your company."
Financial experts gave the following tips:
1. Get rid of debt.
2. Monitor all your expenses and tighten your budget where possible.
3. Keep stacking that emergency fund.
4. Don't stop networking.
5. Consider starting a side hustle to bring in extra income.
6. Diversify your portfolio.
7. Pay attention to the financial news and do your own research when making investment decisions.
8. Stay the course.
Business Insider's Personal Finance Insider writes about products, strategies, and tips to help readers make smart decisions with their money.