Financial experts are advising Americans to take proactive steps to prepare for the possibility of a recession. Despite declining odds of a recession, many Americans are still taking precautions to safeguard their finances. A recent survey found that 40% of consumers are monitoring their spending more closely, while 31% are limiting discretionary spending. Additionally, 24% are delaying big-ticket purchases to save money, and 41% are considering long-term savings investments over short-term ones.

Experts recommend settling high-interest debts, establishing an emergency fund, and maintaining a diversified investment portfolio. They caution against trying to time the market during a recession and emphasize the importance of sticking to long-term investment strategies. Reducing non-essential expenses like travel and dining out, exploring additional income sources, and reassessing long-term financial goals can also help individuals navigate economic downturns more effectively.

The Federal Reserve’s aggressive interest rate hikes to combat inflation have led to growing concerns about a recession. However, some homebuyers are counting on a recession to find relief from rising home prices and mortgage rates. A recent Realtor.com survey found that 35.9% of buyers believe a recession would make them more likely to purchase a home, with first-time buyers being even more likely to take advantage of potential lower mortgage rates.

Overall, financial experts advise that preparing for a recession involves prudent financial decisions and investment strategies that can help individuals weather economic turbulence.