How to survive a recession
In this article we’ll be talking about conventional wisdom around how to survive a recession, why that wisdom rarely works, and what you can do instead.
Approximate read time: 6 minutes
A quick google will tell you the four things you must do if you want to survive a recession…
- Save money
- Live below your means
- Get out of debt
- Get a good job
- Build an emergency fund
Here is what is going to happen if you try to implement, mandate or encourage the above bullet points in your life:
Nothing.
And it’s not because you’re dumb, or not taking this seriously, or you’re not motived… it’s because simplistic financial deepities like those above DON’T WORK. And because many of the wisdom above is best implemented BEFORE a recession hits, and are of little use once you’re already in the thick of it.
Ready to implement some tools that will ACTUALLY help you prepare for and survive a recession? Read on
Survive a Recession Skill #1: Take inventory
The purpose of taking inventory is to find the hidden resilience in your life. Very often (but not always, of course) we have more resources available to us than our panicked brains think. You’re welcome to inventory in whatever way you like, but we’ve listed below the general domains it can be helpful to inventory. As much as possible, try not to change anything right now, this is just an inventory.
It’s also helpful to write down and date your inventories.
Inventory money on hand
Write down much is in your checking accounts, savings accounts, credit cards, cash, gift cards, cash under the couch cushions, in old purses, in pockets of coats.
Inventory things that can be returned
Look for recently purchased items that could be returned for either cash or store credit. We’re only looking for things that CAN be returned, not that you want to return. This is just an inventory.
Inventory what could be sold
Again, don’t actually start selling anything yet, just list the things you think might be sellable and your best guess as to how much that thing could sell for
Inventory your skills and avocations
Your skillset is a resource. Even if you don’t think your skill or hobby is marketable, that’s ok. We’re not looking to trade your time for money at this point.
Inventory perishables
If things are especially dire, it’s important to know how long your household could function on the supplies and perishables you have on hand right now. Everything from toilet paper (callback to 2020) to cleaning supplies to your favorite beer. Inventory these perishables not in terms of how much you have on hand (pounds, ounces, etc), but by how long your supply will last you (3 days, 2 weeks, etc)
Inventory money or items owed to you
From your paycheck, to venmo requests, to the return of your mower, what is owed to you?
Inventory community resources
Does your company offer discounts or perks you might not know about? What kinds of community resources are available (food pantries, movies in the park, vision or dental drives, libraries, etc)? Consult 211 for more ideas.
Inventory family resources
Like community resources, there is often much more support that we might be able to tap into. Could someone in your family help with even a few hours of childcare? Would a friend of a relative like to barter or trade something? Even just emotional support and companionship can help!
Inventory prepaid items or memberships
What have you already paid for that you could return or get a refund for? What have you already paid for that you could still make use of like event tickets or memberships?
Inventory the things that recharge your emotional and physical battery
I know you have lots of other things to focus on that seem drastically more important, but taking account of the things that buoy you up mentally and physically is important. Take your time with this inventory, it’s important.
Inventory what can be negotiated
Could your rent be even temporarily renegotiated? How about your utility bills, your credit card interest rates, student loan payments? Asking for hardship accomodations is not easy, but it can really help. (more on this in the next section)
Survive a Recession Skill #2: Ask and connect
Now that you’ve got a pretty comprehensive list of your on-hand resources, take a minute to reflect. Do you feel any differently now than before you started the list?
The next step isn’t any easier than the first, and that’s to begin connecting with the outside world and begin asking.
I appreciate that you might be feeling like isolation (“I’ll just take care of this myself”) is the right way to go, but I urge you to fight against that gut reaction. Isolation very often is trying to protect us from possible humiliation, more questions, more stress, and more worry. But that protective strategy may also come along with shame and guilt, which will only isolate us further and deepen the cycle of anxiety and financial stress.
How to make a financial request
Wether you’re asking for your mower back, asking to pause payments on your credit card, or asking a relative to cover some childcare, it’s important to keep a few things in mind:
Ask for something specific
I appreciate that in moments of deep financial stress it can seem like just throwing a lifeline out to anyone for anything will help, and it might, but that unspecified request might also make the other person feel pressured too.
Asking for something specific also means you’re being intentional about what your asking for and WHO you’re asking. Not everyone is safe to make every request of. Your dearest friend may be more than willing to help spend the evening cleaning your house with you but may feel their own finances at risk if they cover your rent. Your credit card company is likely not willing to forgive all your debt, but would the be willing to set up a payment plan?
Ask for something impactful for you and low-burden for them
As discussed above, what you ask for is as important as who you ask. By taking on the perspective of the person or company you’re considering making a request of, you are practicing thoughtfulness not just for them, but for your own situation.
Survive a Recession Skill #3: Getting through the mental and emotional shitstorm
It cannot be understated how reactive our brains and bodies are when resources are on the line. Like all living things, we are resources obsessed, and for good reason! We need resources to live! And our modern economy the only resource we have is money. To have days off, education, food, clothing, we need money.
Navigating financial stress is not easy, but it is very do-able. Counterintuitively, the gentler and more patient you are with yourself, the fast you will move through this difficult time.
Above I asked you to inventory what fills your battery. Now is the time to begin prioritizing those things. Taking care of your mind and body is not frivolous and you don’t ever need to earn rest.
Survive a Recession Skill #4: Practicing expected spending, not restricted spending
Right about now I’m guessing there are a lot of things removing choice from you. The economy, your work, your responsibilities, all of these important things can serve to strip choice and autonomy away from us.
And right about now I’m also guessing that you’re feeling the pull towards restriction. “I just need to stop spending on stupid things!”, I’ve heard people say. And while it’s always ok to spend in line with your values, that is very different than restriction.
Restriction is the removal or reduction of choice. Our brains do not function well under limited choices (even if it’s just the perception of a reduction of choice)
Choice and autonomy mean control. Control means safety and survival. When we restrict ourselves, we signal to our brains that we are in a time of scarcity, and our brains respond with a sense of crisis, panic, or anxiety. At the same time as we’re putting our brains into a state of crisis, we are also expecting ourselves to magically make better decisions. The results are predictable and dangerous.
Restriction is easy to implement
I know restriction is easy to implement, and I know you’ve heard the advice ONLY SPEND ON WHAT YOU NEED, NOT WHAT YOU WANT about a million times, but I can assure you, that mindset is toxic and will not serve you.
So if I’m saying restriction is bullshit, what are you supposed to do instead?
The opposite of restriction is not willy-nilly, unhinged spending, it’s expected spending.
Expected spending is easy to explain and difficult to practice. Basically the skill is to set out to spend a certain amount of money on a certain thing and then spend that money.
For example: Let’s say I walk into the grocery story and say to myself “I can’t spend more than $100”. This is restriction, and is likely to fire of that scarcity mindset that we talked about above. But if I walk in the store and say “I’m going to spend exactly $100”, my brain is likely to be much more engaged in the game of hitting that $100 exactly. And here’s the thing, even if I don’t hit the target of $100 exactly, it’s ok. (Remember that patience and grace that I talked about above?)
What do you think you’ll notice if you practice spending a specific dollar amount (even if it’s low) instead of doing restriction?
Survive a Recession Skill #5: Understaing the purpose
One of the games I have my clients play is the “what is the purpose of this?” game.
Imagine each time you spend money you ask yourself “What is the purpose of this spending?”. What kinds of patterns do you think you’ll notice. Do you predict your spending will align with your values?
By understanding the purpose behind what we spend our time, energy, and money on we can begin to evaluate those choices, not ourselves. And only then can we start to really recover from a recession or any other financial knockdown.
In conclusion
You’ve probably already realized this by now, but I’ll be blunt: the problem isn’t that you’re not doing enough. The problem is that conventional financial “wisdom” was never designed to work in a recession—it was designed to work before one. And it was designed to make sure you know YOU are the problem.
What we’ve covered here isn’t magic. It’s not going to make the economy bounce back or erase the stress. But it will help you think clearly, act intentionally, and make choices based on your values—not shame, panic, or pressure.
So if you’ve made it this far, consider this my official recommendation from me to you: You don’t need to comply with stale financial advice. You just need to find financial systems, strategies and routines that comply with YOUR life.
And you’re already doing it.
Ready to read about why just focusing on your needs and not your wants is NOT enough? Try this article
Wondering what to do if you’re successful but unfulfilled? Try this article
Last updated: May 2025