In these uncertain times, it’s more important than ever to make the most of your finances. Making your finances recession-proof is all about taking practical steps to ensure your money is working hard for you.

Here are 10 tips to help you recession-proof your finances:

1. Make a budget and stick to it. This will help you keep track of your spending and ensure that you're not overspending.
2. Save, save, save! Try to put away as much money as you can into savings account so that you have a cushion in case of tough times.
3. Invest in yourself. Take the time to learn new skills or improve upon existing ones. This will make you more valuable in the job market if you need to make a job or career change.
4. Remove any unnecessary payments. Look at your bank account and remove any pain-free direct debits. Consider if you’re currently paying for goods or services you don’t really need, for example any subscriptions you no longer use or benefit from.
5. Reviewing your energy tariffs, home insurance, car insurance, broadband, TV package, mobile tariff and keeping on top of when offers come to an end is really important – now might be a good time to see what’s available for you in the market.
6. Stay disciplined with your debt. Make sure you’re making all of your payments on time and in full. This will help you avoid costly late fees and keep your credit in good shape.
7. Pay off any high-interest debt, such as credit card debt, freeing up more money in your budget to cover other expenses if your income decreases.
8. Have an emergency fund. This is a must in case you lose your job or have any unexpected expenses. Try to save up at least 3-6 months’ worth of living expenses so that your everyday expenditure can be covered in such an emergency.
9. Diversify your income. Don’t put all your eggs in one basket. Having multiple streams of income can really help. If one income source starts to dwindle – or gets eliminated completely – this will provide other sources to fall back on.
10. Diversify your investments. In addition to diversifying your income, it’s also important to diversify your investments. Review your investment portfolio and make sure your investments are spread across different industries and even different types of asset classes.

Protect your financial future

Putting some of these tips in place could help you to make more of your money and could go towards protecting yourself from the some of the effects of a recession.

Please note: This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

Some forms of debt carry penalties for early repayment, it may not always be appropriate to repay debt earlier than agreed. You should always consider any penalties or early repayment charges, along with any other associated costs when deciding the most cost-effective approach to managing debt.

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