6 Ways Canadians Can Prepare For Upcoming Recessions

With the financial times that we are in, it is fair to say that Canadians can expect an upcoming recession. Although we are not in one yet, there are many ways to prepare for one. Consider some helpful economic strategies to prepare for an upcoming recession.

What is a Recession?

A recession is when there is a declining amount of financial activity within a general area. The average timespan of a recession is 17 months. Recessions are harmful to the majority of people when it comes to losing jobs, companies losing sales, and the country’s economy dropping.

How You Can Prepare

Although we cannot prevent a recession, there are some factors that we can incorporate into our lives right now to prepare for one.

Reduce Your Spending

The less you spend now, the more you have for more important things in your future. Unfortunately, with inflation today, it can seem impossible to reduce spending. One standard method is to purchase less, whether this includes recreational shopping or groceries. Yet depending on your situation, you may be unable to lower your purchase amount. A tactic that many have benefited from is using the flip app. This app offers all sorts of discounts for groceries and personal necessities. Using coupons on your shopping trips could extremely reduce your spending each month.

Eliminate Debts

Everyone has some debt, whether it’s good or bad debt. Yet the last thing you want is to pay off your debt during a recession when your finances are tight. Therefore, focusing on your debt now is essential. To do this, you must find what will work best with your current situation. For some, paying off their highest debts may help alleviate a lot of stress. Yet if money is tight at the moment, then getting rid of smaller debts can help lower the debt list on your list. You can determine what path will be best for you by analyzing how much you can pay towards your debts monthly. If you are still unsure, try booking an appointment with a financial specialist who can look at your finances and offer their standpoint.

Maintain a Good Credit Score

When a recession does happen, you do not want to be stuck with a low credit score. This will limit your credit options when you need them the most. If you currently have a lower credit score, then now is the time to raise it, since it can take months to regain your credit. One way to increase your score is by avoiding late payments. Create a schedule of when you plan to make each payment for your bills. Aim for five days before the deadline if there is a delay with the money transfer. Another way is by being wise with your credit. Do not get loans from the bank unless vital. The less you need to repay the bank, the better it will look on your report.

Build an Emergency Fund Now

This will be a necessary action to take before an upcoming recession. Many families and communities suffer when a recession hits. Most of the people who are impacted the most were not adequately prepared. Everyone’s emergency fund will look different, depending on your income and age. No matter how much you can put towards it, as long as you contribute at least once a month, you can be sure to benefit in the future.

Prioritize Your Finances

Finances may seem like a stressful aspect of life for many people. When the word comes to mind, many may think of their many bills, debts, or even work. Yet when you change your viewpoint, you can begin to enjoy your finances. By setting daily and long-term goals and planning for your current and future finances, you can start to prioritize your finances in an exemplary aspect of life. When a recession begins and you have a good plan for your finances, you will avoid feeling stressed about how to deal with your finances and the economy.

Improve Your Skills

As mentioned in the beginning, many people lose jobs during a recession. You do not want to be taken by surprise and left without a job for months. Although we sometimes cannot help with limited job availability, you can be ready to start different career paths by making yourself open to other skills. This can include learning various trades, such as electrical or plumbing, gaining customer service skills, and acquiring technology training. Although losing your job will be stressful, with more experience on your belt, finding employment in other areas will be much easier.

You can better withstand the aftereffects of a recession when you have some of these elements integrated before it begins. Making your finances a priority in your life will make this a possibility.


-Equifax (2022). 5 Ways to Prepare For a Recession. Retrieved from


-Georgopoulos, George. Hejazi, Walid (2022). 6 Ways Canadians Can Prepare For The Upcoming Recession. The Conversation. Retrieved from


-The Investopedia Team (2022). Recession: Meaning in Economics With Causes. Retrieved from https://www.investopedia.com/terms/r/recession.asp