 TITLE: What Is the Difference Between a Recession and a Depression? CONTENT: How Can I Prepare My Finances?\n------------------------------\nAs the pandemic showed us, it can be hard to predict when an economic downturn will hit, and it can happen quickly. To protect yourself during tough times, it's wise to prepare your finances before a recession or depression hits. Here are some ways to plan ahead:\n*   **Create a budget**. This will help you stay aware of the minimum amount you need each month for necessary expenses. You may also want to note disposable income spending so if things get tough, you'll immediately know some places you can cut (things like streaming subscriptions, gym memberships and the like).\n*   **Start building an emergency fund.** It's ideal to have three to six months' worth of living expenses saved so if you lose your job, you can get by for a while without going into debt. It can also help you avoid taking on debt if you encounter an unexpected bill, such as a car repair.\n*   **Catch up on past payments.** Overdue payments can cost you in late fees and in other ways, as well as potentially harming your credit scores.\nKnow Your Credit\n----------------\nIt's wise to keep an eye on your credit score so you know where you stand before a recession, and so you can help make sure it doesn't get damaged during one. Sign up to check your credit report and score for free with Experian, and check in on it periodically so you can course-correct as needed. END