As financial forecasters predict a major economic downturn, concerns about a recession are growing. Here are five ways to prepare for a potential recession:  1. Create a strict budget  Becoming familiar with your monthly spending habits and sticking to a personalized budget can help you plan ahead and prioritize the necessities to help avoid flippant purchases.  2. Set up an Emergency Fund Whether you have extra cash lying around or you've gone under your monthly budget, stashing any extra income into an emergency fund can go a long way in ensuring financial stability.  3. Invest in your career  Up-skilling and developing new skills can help safeguard your career during a recession by boosting your income and improving your job prospects. 4. Prioritize Debt Pay-Off  With climbing interest rates, aim to pay your bills on time and prioritize high interest payments to avoid racking up further debt and ensuring you remain in control of your finances.  5. Diversify your Income  Diversifying your streams of income can be crucial in financially safeguarding your future.  Taking on a side gig such as consulting or engaging in part-time work can make a significant contribution to your financial wellbeing.