# Protecting yourself against a recession Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2020-05-29 Category: LIFESTYLE Category URL: https://financedigest.com/category/lifestyle Meta Title: How to recession-proof your finances during the Great Meta Description: Discover expert advice from James Turner of Turner Little on how to recession-proof your finances and protect your assets during the Great Lockdown. URL: https://financedigest.com/protecting-yourself-against-a-recessionhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/img5954-279-1736838913018-compressed.jpg) _By **James Turner,** Director at Turner Little,_ The coronavirus outbreak has spread to businesses, leaving many around the world counting costs. Notoriously, known as the Great Lockdown, it’s been affecting the world economy since early this year. The predicted [recession is considered to be the steepest economic downturn](https://www.financedigest.com/euro-zone-downturn-deepened-in-oct-winter-recession-likely-pmi.html "Euro zone downturn deepened in Oct, winter recession likely -PMI") since the Great Depression. So, what does that mean for you? James Turner, Director at company formation specialists, Turner Little, suggests “While there’s no fool [proof way to ‘recession-proof’](https://www.financedigest.com/how-to-make-your-company-recession-proof.html "How to Make Your Company ‘Recession-Proof’ ") your finances, establishing a solid base now will put you in a better position to weather the storm.” “Whilst the future of the global economic landscape is simply too complex to predict, it’s not hard to spot imbalances that have built up, as [central banks](https://www.financedigest.com/russian-central-bank-gives-legal-entities-green-light-to-trade-foreign-shares.html "Russian central bank gives legal entities green light to trade foreign shares") and governments around the world talk about introducing further fiscal stimulus and monetary expansion, the consequences could be significant,” adds James. A good [wealth management](https://www.financedigest.com/annual-survey-of-wealth-managers-2022.html "Annual Survey of Wealth Managers 2022") agent will recommend starting by saving a substantial cash emergency fund in a high-yield savings account, understanding your spending habits and where you could cut back if you needed to, and establishing your long-term investing strategy now, so you can stick to it. [**Invest wisely**](https://www.financedigest.com/six-tips-for-saving-money-and-investing-wisely.html "Six Tips For Saving Money And Investing Wisely") ![James Turner](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/james-450x297-1736838912888-compressed.png) James Turner If you were to solely invest based on the inevitability of a recession, you are likely to miss returns that are immediately available. If you truly want to recession-proof your assets, the best thing to do is [develop a long-term strategy](https://www.financedigest.com/yves-mirabaud-says-we-are-on-track-with-our-development-strategy.html "Yves Mirabaud Says “We are on track with our development strategy”") and invest wisely. **Diversification still matters** It’s dangerous to pile all your investments into a single sector, including [consumer staples](https://www.financedigest.com/consumer-staples-banks-lift-uks-ftse-100-after-sharp-selloff.html "Consumer staples, banks lift UK’s FTSE 100 after sharp selloff"). Diversification is especially [important during a recession when particular companies and industries](https://www.financedigest.com/popcorn-containers-market-important-changes-in-industry-dynamics-during-2017-2027.html "Popcorn Containers Market  Important Changes in Industry Dynamics during 2017-2027") can get hammered. Creating a diversified portfolio of assets blended across asset classes—such as fixed income and commodities, in addition to equities, sectors, geographies and strategies—can also act as a [check on portfolio losses](https://www.financedigest.com/yen-stems-losses-after-report-of-boj-rate-check-hints-on-intervention.html "Yen stems losses after report of BOJ rate check, hints on intervention"). **Build a reserve** To keep your money protected before, during and after a recession, it’s recommended to have an [income generation](https://www.financedigest.com/investing-in-real-estate-how-to-generate-passive-income.html "Investing in Real Estate: How to generate passive income") conversation with a financial advisor. This will cover a lot of different topics, but one of the most important is the [emergency fund](https://www.financedigest.com/where-can-you-start-building-your-emergency-funds.html "Where Can You Start Building Your Emergency Funds?"). You’ve likely heard many times that it’s good to have between three and six months’ worth of living expenses set aside in the event of a [job loss](https://www.financedigest.com/irish-consumer-sentiment-dips-slightly-on-tech-job-losses.html "Irish consumer sentiment dips slightly on tech job losses"), health crisis, or other unforeseen circumstance. [**Protect your assets**](https://www.financedigest.com/how-to-best-protect-assets-following-major-global-shifts.html "How to Best Protect Assets Following Major Global Shifts") If you’re interested in talking about [protecting your assets and your investment](https://www.financedigest.com/a-gold-ira-can-protect-your-retirement-investment.html "A Gold IRA Can Protect Your Retirement Investment") portfolio, do get in touch. We specialise in creating bespoke solutions for individuals and [businesses of all sizes](https://www.financedigest.com/covid-19-is-impacting-the-variable-speed-drive-market-size-business-revenue-forecast-leading-competitors-and-growth-trends-2028.html "COVID-19 Is Impacting The Variable Speed Drive Market | Size, Business Revenue Forecast, Leading Competitors And Growth Trends 2028"). The knowledge and expertise of our specialists will be able to assist with any enquires, no matter how complex. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---