Financial Health Checklist for Recession-Ready Living
Hell yeah, let’s get into it.
This isn’t just a fluffy “10 Tips for a Rainy Day” list — this is your no-BS financial health checklist to make sure that when a recession hits (and eventually, it always does), you’re not just surviving… you're thriving. I'm talking about standing strong while others panic. You ready?
1. Check the Foundation: Is Your Income Built on Sand or Stone?
Look—if your paycheck is your only lifeline and it disappears tomorrow, we’ve got a problem. In a recession, layoffs come fast and without warning. Industries like retail, travel, construction, and even tech can go from “we’re hiring!” to “we’re downsizing” in a blink.
✅ Action Step:
List out all your income sources. Then ask yourself: “What would happen if my main one disappeared?”
Start a side hustle that aligns with your skills (consulting, tutoring, selling digital products).
Got equity in your home? Consider how a HELOC might serve as a backup.
This isn't about panic—it's about options. And in a recession, options = power.
2. Audit Your Budget Like a Ruthless CFO
Now’s the time to stop treating your budget like a suggestion. Go line-by-line through your spending. If it doesn’t add value or build resilience, it’s dead weight.
✅ Action Step:
Create three tiers in your budget:
Essentials: Mortgage/rent, utilities, food, insurance.
Nice-to-Haves: Streaming, gym, dining out, Amazon impulse buys.
Cut It: Old subscriptions, unused memberships, lifestyle creep extras.
Use tools like YNAB or even a basic Google Sheet. But don’t skip this. It’s the difference between “I’m managing” and “I’m drowning.”
3. Stack That Emergency Fund Like It’s Your Life Vest
I’m gonna say it plain: if you don’t have 3–6 months of expenses in liquid savings, that’s the first red flag. During a recession, sh*t can hit the fan fast—your car breaks down, hours get cut, or prices skyrocket.
✅ Action Step:
Calculate your monthly burn rate (just the essentials), then multiply by 3 or 6. That’s your target.
Start by automating $100–$500/month into a high-yield savings account like Ally or Marcus.
Don’t keep this in checking. Out of sight, out of temptation.
4. Attack Bad Debt Like It Stole Your Future
Nothing eats your financial flexibility like high-interest debt. You do not want to carry this into a recession. It’s like bringing an anchor to a swim meet.
✅ Action Step:
List all your debts with interest rates.
Tackle the highest-interest ones first (credit cards over 15% are vampires).
If cash flow allows, use the avalanche method (pay largest interest rate first) or snowball method (pay smallest balance first for momentum).
Consider consolidating or refinancing if your credit score allows.
5. Do Not Stop Investing — Adjust Instead
Most people do the opposite in a downturn—they stop investing and hoard. That’s fear talking. If you're already investing, don’t back out. If you’re not, now is the best time to start. Markets go on sale during recessions.
✅ Action Step:
Keep contributing to your 401(k) or Roth IRA.
Review your asset allocation (stocks/bonds/cash).
If you're nervous, shift to a more conservative mix — but don’t sit out.
Recession wealth is built by people who kept going when everyone else froze.
6. Audit Your Investment Portfolio for Gaps
Here’s where you put on your strategist hat. Is your portfolio diversified? Are you overexposed to one sector? One company? Crypto heavy? Tech-heavy?
✅ Action Step:
Log into your brokerage or retirement platform:
Check for overconcentration. More than 10% in one stock? Time to rebalance.
Diversify across asset classes: U.S. stocks, international, bonds, real estate.
If you don’t know where to start, use tools like Personal Capital or talk to a fiduciary advisor (not your cousin who sells insurance on the side).
7. Keep Your Mind Sharp: Stay Educated, Stay Ahead
Most people wait until the bottom drops to start Googling “how to recession-proof finances.” Don’t be most people. Stay informed NOW so you're making moves based on facts, not fear.
✅ Action Step:
Subscribe to 2 reputable finance newsletters (like Morning Brew and Black Mammoth’s No BS Wealth).
Set Google Alerts for “recession,” “inflation,” and your industry.
Block 15 minutes a week to review market trends and macro news.
Knowledge isn’t just power—it’s protection.
8. Polish That Resume and Warm Up Your Network
Don’t wait until your back’s against the wall. You need to act like the job market owes you nothing—because it doesn’t.
✅ Action Step:
Update your resume and LinkedIn profile this week.
Schedule 2 coffee chats or Zooms with people in your field.
Ask this magic question: “If your company had an opening, would you think of me?”
If layoffs come, you won’t be scrambling—you’ll be sliding into DMs with options.
9. Don’t Overcommit to Big Purchases or New Debt
Now is not the time to take out a car loan because “you deserve it.” You don’t want fixed debt payments when your income might not be fixed.
✅ Action Step:
Ask yourself before any big purchase:
“Would I still want or need this if my income dropped by 30% tomorrow?”
If the answer is “no,” that’s your sign. Delay it. Downsize it. Reevaluate it.
10. Create Additional Streams of Income (Yes, Even Now)
The goal isn’t to grind 24/7. The goal is to unhook your life from one income cord. Whether that’s a side hustle, investment property, or affiliate income—you need a plan B that can grow into Plan A.
✅ Action Step:
Choose one: freelance, sell a service, rent a room, resell products, start a course.
Set a 90-day goal: “I will make $X/month in additional income.”
Use nights/weekends or early mornings to build it. Start small, but start.
Final Thoughts: Be the One Who Prepared
The economy has its cycles, and you can’t time them perfectly. But you can get ready like a damn pro. This financial health checklist isn’t just about surviving a recession—it’s about making moves that leave you better off when the economy rebounds.
Your future self is watching. Your family is watching. And I see you too.
Let’s build that recession-proof armor—one smart, bold step at a time.
Resources to Go Deeper:
Let’s Talk Real Strategy — Book Your Black Mammoth Power Hour
Reading about what to do is one thing. Actually doing it? Whole different story. If you're serious about getting your financial house in order before the next recession hits, you don’t need more theory — you need straight-up strategy tailored to you.
That’s what the Black Mammoth Power Hour is for.
One hour. One-on-one. No fluff. No sales pitch. Just a focused deep dive into your financial reality — what’s working, what’s broken, and what to do next. Whether you’re trying to recession-proof your business, build cash reserves, or finally get clarity on your investments, we’ll break it all down together.
Walk away with a crystal-clear action plan and the confidence to move forward with intention, not panic.
Sound like exactly what you need?
Schedule your Power Hour and let’s get to work.
And if you’re not quite ready for a deep dive, but still want real-talk financial guidance in your inbox — no jargon, no B.S. — then subscribe to the No BS Wealth Newsletter.
Stay sharp. Stay ready. Stay ahead.