Hi friends!
Layoffs, market downturns, inflation… The looming recession (or perhaps we’re already in it) is on a lot of people’s minds, mine included. And it’s no doubt that a lot of us are thinking about how to protect ourselves during economic and financial uncertainty, because these impact our overall well-being and quality of life quite significantly.
What exactly am I doing to 'recession-proof’ my life?
Well…nothing. And that’s only because I’ve already been implementing these “cautionary” and consistent routines into my life well before the recent panic set in. But, I’m aware this isn’t the case for everyone.
So here's my personal recession survival guide — these are the exact steps I'm taking to protect myself (note this list is not exhaustive):
1. Track your wins at work
I keep a "wins" document where I record my major project accomplishments, positive feedback, or metrics I've improved. Why? Because when economic uncertainty hits, companies often make tough decisions about who stays and who goes.
Having a detailed record of your contributions means you:
Can advocate for yourself during performance reviews
Have ready examples if you need to interview elsewhere
I update mine every Friday afternoon before logging off — it takes 5 minutes but it's SO worth it.
2. Keep your resume up-to-date every 6 months
Updating your resume isn't just for job hunting, but it’s great for peace your of mind. I set a calendar reminder every 6 months to refresh mine, even when I'm perfectly happy with my job.
The worst time to update a resume is when you're panicking after an unexpected layoff. Do it when you're calm and can clearly articulate your accomplishments. Plus, when opportunities suddenly pop up (which you never know), you're ready to jump on them.
I recommend including the measurable impact from your past experiences and using the XYZ formula. Click here for more actionable resume tips.
If you’re currently on the job hunt, I feel you, especially in the climate we’re currently in. It can feel like a never-ending climb up a mountain, but you only need one yes. You got this!
3. Live below your means
This is probably the most important one on my list. In simplest terms, this means spending less than you earn. I’ve always been cognizant of my financial situation – I don’t try to live a lifestyle I cannot reasonably afford nor do I treat my credit cards as “free money” (this can get incredibly expensive).
Every time I receive a deposit, I make sure to pay myself first, which means putting aside some money into savings before I spend it. Even if you can only afford to put away a small amount, you’re prioritizing your future self.
It can also be tempting to inflate your lifestyle as your income increases (this is referred to as lifestyle inflation). And I don’t think that’s a bad thing at all! I’ve certainly upgraded parts of my life in recent times, because at the end of the day, money is meant for you to live a more comfortable life. However, I personally still make sure my overall savings rate stays the same or increases overall, so I can meet my financial goals.
4. Lower discretionary spending and track your finances
It’s really easy these days to be influenced to buy stuff that you want but don’t necessarily need. This happens for me from time to time, but in risky circumstances sometimes you need to make sacrifices for the short-term. There are a few rules I follow to be more conscious of my spending patterns:
I track all of my income and expenses (down to the dollar) using a spreadsheet that I created (& thousands of people are using the exact same one). It only takes a few minutes a week, and coming to terms with my financial picture on a regular basis helps me to really see (this is humbling sometimes, lol) where my money goes. And, I’m subconsciously thinking about strategies or ways to improve my situation.
The 48-hour rule: say you see something online that you really want, but don’t necessarily need. Put it in your cart, leave it there for 48 hours, and see if you’re still excited about the item. If you still really want it, it’s likely a worthwhile purchase, but if you’re eh about it, it was probably an impulsive desire.
5. Increase your cash buffer
You’ve probably heard of the traditional advice of saving 3 to 6 months of expenses as an emergency fund, which is one of the biggest areas of prioritization for many people. But, I’m a big advocate of increasing your cash buffer due to the uncertainty we’re facing right now, and to be prepared for any opportunities where you need the money (like starting a business or investing). No matter where you are at this step, putting away any amount helps.
I keep my emergency fund in a high-yield savings account (as of this writing, this account provides 3.80%) where you can earn more interest than a “regular” savings account.
6. Look into expanding your income streams
During uncertain times, having multiple sources of income is like having insurance for your career. It can be quite risky to have all your eggs in one basket (aka one income stream). My income streams include my full-time job, my content creation business (this income comes from partnering with brands on sponsorships and user-generated content, products, affiliate links, and social media platforms), interest from my high-yield savings account, and dividends plus capital gains from stock investments.
From my observations and experiences, there are three main types of “side” income streams:
Side hustle type 1: This is when you can do something to make money right away. Think babysitting, DoorDashing, or a part-time job where you are paid hourly. These options are lower barrier to entry, but are good if you need something low-commitment or cash right away.
Side hustle type 2: You’re using your skills to build a business or product. It takes more effort and you might not see material results right away, but you are creating something that has the potential of higher returns in the future (I would put content creation in this category).
Income through capital: This works only if you already have some capital, but by putting funds in high-yield savings accounts or investment accounts, your money can make you more money without you needing to do much additional work.
7. Don’t panic sell
This is my reminder to myself as much as to you all! When markets get volatile, our instinct is to pull money out to "protect" it. But historically, this is often the worst move.
Instead, I'm:
Continuing my regular investment contributions to broad-market ETFs that track the overall market (dollar-cost-averaging or DCA)
Actually looking for opportunities (stocks in the market are essentially "on sale")
Remember: time in the market beats timing the market. And as Warren Buffet said: “Be greedy when others are fearful, and be fearful when others are greedy.”
I hope this helps! If you enjoyed reading, it would mean the world if you like, comment, and share this post with a friend. Stay happy and healthy during these recessionary times 💖
xx,
Lillian
👇 Financial Resources:
If you’ve been enjoying my posts, you’ll love my upcoming book The New Money Rules: The Gen Z Guide to Personal Finance launching on November 11, 2025. It’s one of the first personal finance books written for Gen Z by Gen Z, and packed with real-life strategies, relatable stories, and practical tools to help you level up your life and money game.
📖 Pre-order now and get exclusive free bonuses including a savings tracker, a 14-page career & personal branding guide, and a private Discord community with behind-the-scenes and early access. Bonuses are only available for pre-orders placed before launch day.
👉 Claim your copy + bonuses here → thenewmoneyrules.com
Let’s stay connected: Instagram | TikTok | YouTube
Looking to advertise? Reach out to hello@lillianzhang.com with advertising/sponsorship inquiries.
Hi! Can you share some examples on track your wins at work? Thank you for sharing :)
great advice! thanks for sharing this