With recession fears on the rise (again), it’s time for a money gut check.

A recent CNBC CFO Council survey found 60% of CFOs expect a recession in the second half of 2025. Goldman Sachs upped their own odds to 45%. Translation: The economic vibes are shaky, and playing defense with your savings isn't just smart—it’s necessary.

So, what does recession-proofing your savings actually look like when you don’t want to give up living your life? Let’s break it down without the doom and gloom. Here are five practical, data-backed moves to help safeguard your money—and sanity—when the economy starts acting weird.

Review Your Budget, Without Going Full Hermit Mode

Yes, budgeting is the oldest advice in the book—but the way you do it makes the difference.

Think of your budget like a personal offense and defense playbook. Go line by line on your spending to trim the non-essentials, but don’t cut so deep you quit everything fun cold turkey. It’s not about punishment. It’s about optimization.

Quick wins:

• Ditch unused subscriptions (looking at you, “free trial” from 6 months ago).

• Audit your grocery list. One trip, one plan, no impulse buys.

• Check your insurance policies—you might be overpaying and not even realize it.

Tools like Simplifi or Monarch make this easier than old-school spreadsheets, and they give you visibility into trends you might be missing.

Build or Fortify That Emergency Fund, Even If It’s Just $500

Emergencies don’t care about recessions. They show up anyway. A sick pet, blown tire, or surprise dental bill can wreck a budget fast.

Experts suggest 3–6 months of expenses, but let’s be real—not everyone has that sitting around. Start smaller. Even $500 to $1,000 in a high-yield savings account can take the sting out of life’s curveballs.

Here’s what matters most: automation. If your bank lets you, auto-transfer $25–$50 weekly into your emergency fund. You won’t miss it, but your future self will thank you.

Move Cash Into a High-Yield Savings Account (HYSA)

Most traditional savings accounts pay less than 0.5% APY (aka financial background noise). But top high-yield accounts are offering around 4% APY as of May 2025.

That’s a huge difference, especially when you're trying to protect the buying power of your dollars in a weird economy.

While rates do tend to drop during a recession, a solid HYSA still beats letting your money sit idle in a big-name bank doing nothing. Just make sure the account is FDIC-insured and doesn't hit you with weird withdrawal limits or fees.

Lock In Interest With a CD, Before the Fed Starts Slashing

CDs (certificates of deposit) are boring... in the best possible way.

When interest rates are high and recession fears are bubbling, it’s the perfect time to lock in rates before the Fed inevitably starts cutting again. As of May 2025, you can still find CDs paying 4% or more for 6–18 month terms.

Think of a CD as the “set-it-and-forget-it” of savings. If you’ve got money you know you won’t need for a year or so, it’s a smart way to get guaranteed returns. Just make sure the maturity date fits your timeline so you don’t get hit with early withdrawal penalties.

Attack High-Interest Debt Like It Owes You Money (Because It Does)

Recession or not, debt is the ultimate wealth drag—especially credit card debt with double-digit interest rates.

Now’s the time to be aggressive. Pay down your highest-interest debts first, or look into 0% APR balance transfer cards if your credit allows. Every dollar of interest you avoid is a dollar earned (without paying taxes on it, no less).

Not to get dramatic, but if a recession hits and income drops? You don’t want monthly payments making it even harder to breathe.

Bonus tip: if you’re already investing, consider lightly scaling back on risky positions to put a bit more toward debt payoff. The ROI might surprise you.

Final Thoughts

Recession-proofing your savings isn’t about panic or perfection. It’s about being intentional. Whether or not a full-blown recession hits, these five steps will make you more financially resilient—and give you options when others are scrambling.

Because in uncertain times, liquidity is power, and preparation beats prediction.

Disclaimer: The information presented is for educational purposes only and not an offer or solicitation for any specific investments. Investments involve risk and are not guaranteed. Consult with a financial adviser before making any investment decisions. Past performance does not guarantee future results.