With gas prices up 59.9% and food prices up 10.4% year over year, is it inevitable that a recession is around the corner? Economists have differing opinions, but what we do know is that we’re already paying more for less, so it’s time to take steps to put our families in a better financial position. Then, if a recession doesn’t happen, great! If it does, however, you’ll be better prepared for it. 

Fortunately, there are simple steps you can take now to prepare your family for a recession. Start by reevaluating your budget, boosting your emergency savings, creating a new stream of income, paying down debt, continuing to make retirement contributions and making food savings fun. Taking these steps will give you invaluable peace of mind during these economically uncertain times.

1. Consider what you can cut from your budget

If you haven’t given your budget a formal review to see how you can combat this, now is the time. That doesn’t mean you have to start eating a diet of exclusively canned beans and mac ‘n’ cheese — but it does mean that you should consider cutting back on some lower-hanging fruit.

Here are a few things to consider cutting from your budget (and potential replacements):

• Subscriptions: Choose your favorites and ditch or rotate through the rest! Apps like Truebill can help you find and cancel errant subscriptions.
• Name-brand cleaning products and disposable supplies: Tap water, vinegar, baking soda, dish soap, cheap scrubbing pads, pumice stones and reusable rags make for a pretty strong cleaning arsenal.
• Meal delivery kits: Food prepping for an hour or two each weekend will save you time and help you avoid wasting ingredients. Consider shelf cooking as described by Utahn family finance guru Jordan Page. 

2. Boost your emergency savings

Recessions can cause a lot of havoc in the economy and the job market. Your emergency fund can be a lifeline for your family if a job loss or other financial setback strikes. The ideal would be to have three to six months’ worth of expenses saved, but anything is better than nothing. 

“Having an emergency fund is never a bad idea,” according to Ramsey Solutions. “Think of it this way: If a recession did happen, you could rest easy knowing you have your emergency fund in place. Your emergency fund is the buffer you need to have between you and life all of the time, not just when there’s talk of a recession.”

3. Brainstorm innovative ways to make extra cash

“A recession might seem like a funny time to explore side hustling. But the truth is that there is no better time than now to generate multiple streams of income,” according to http://marriagekidsandmoney.com. “Side hustles don’t have to be big time commitments, and they don’t have to bring in thousands of dollars a month to be valuable.”

Freelance writing, virtual assisting, proofreading, pet sitting, Etsy selling, baking, bookkeeping, tutoring, consulting, transcribing — do any of these sound like you? Take something you already enjoy doing, and you may be able to make a little extra income for just a couple of hours of work a week. 

4. Pay down debt

Paying down your debt is almost always a good idea. But in the face of a recession, it may not be the best idea if you have lost a job or know there is a job loss on the horizon. In those cases, make sure you have your basic expenses covered and keep working on your emergency fund.

If your job is secure, here’s the best approach to paying your debts, according to http://mint.intuit.com: “Focus on contributing more of your income to debt that holds the highest interest rates. While doing so, consider paying off tax deductible debt accounts, like educational loans, to get cash back during tax season.”

5. Keep up with your regular contributions, if feasible

Remember, recessions happen pretty regularly — about once every six years. So while the idea of the economy taking a nosedive may cause you anxiety, don’t panic. Keep up with the retirement account contributions you have been making.

“It can be intimidating to put money in while a recession is looming, but keeping up with these can benefit you in the long-term,” according to Mint. “During volatile times, try to avoid checking your performance each day to stay at ease with your future goals in mind.”

This tip may not be for everyone, especially if your income has decreased. Just keep in mind that the economy ebbs and flows, so do what makes sense to keep your family afloat now while also preparing for long-term success.

6. Make food savings simple and fun

Frugal habits go further if you can get the whole family involved, and what better way to start than with shared family meals?

Here are three tips offered by the bloggers at Marriage Kids and Money:

• Try alternative dishes: Try instituting Meatless Monday or switching your ground beef to ground turkey. Dropping one serving of meat and/or switching out for a more affordable meat option adds up after a few weeks!
• Stock up when it makes sense: Stocking up on staples on sale can save you a lot of money and give you peace of mind, knowing you have essentials on hand. But stocking up may not be for you if you don’t have a place to store it or if you won’t be able to use it all before it goes bad.
• Make meals fun: Try eating themed meals on a schedule, like Taco Tuesday, or upgrade Meatless Monday to Meatless and Movie Monday and watch a family movie after dinner. Take turns planning your favorite meals, find new recipes together or make a meal using random ingredients in your fridge the day before you go grocery shopping.

Whether a recession happens or not, now is the perfect time to focus on finances and get your family in a better position. Reevaluate your budget, boost your emergency savings, create a new stream of income, pay down debt, continue to make retirement contributions and make food savings fun. Following these steps may feel like a sacrifice, but it will give you priceless peace of mind.

Isabella Markert is a project manager at Stage Marketing, a full-service content marketing agency based in Provo.

Newsletter