4 Recession-Proof Money Habits for 2025 and Beyond

4 Recession-Proof Money Habits for 2025 and Beyond

John Csiszar  Tue, August 12, 2025  GOBankingRates

No matter what the state of the economy is, it seems there’s always talk of a looming recession ahead. And recessions are indeed a normal part of the business cycle, and it’s highly unlikely they’ll ever go away.

But in reality, recessions normally occur many years apart, with the economy often growing a decade or more between contractions. According to data from the National Bureau of Economic Research, for example, there have only been six recessions since 1980, a span of 45 years.

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That being said, there hasn’t been a major recession in 16 years, not counting the shortest recession on record that occurred at the onset of the coronavirus pandemic. With high interest rates, markets at peak valuations and prices on everything from groceries to cars remaining elevated, it could be a good time to implement some recession-proof money habits in 2025.

Best of all, these sound financial practices will also help you preserve and grow your wealth even if a recession never comes.

Build Your Life Around Having Excess Cash

When it comes to staying out of trouble financially, cash flow is king. No matter how much money you earn, if you spend all of it, you’ll never be financially secure.

This is why financial advisors always caution about lifestyle creep. If your income jumps from $50,000 to $60,000 per year, for example, it’s extremely common for your spending to increase by $10,000 per year also. Resist the temptation to spend every last dollar you earn or else you’ll always live paycheck to paycheck.

What are some ways to accomplish this? Setting aside money for savings and investments before you even pay your bills is a great way to build long-term wealth while learning to live beneath your means. Paying off high-interest credit card debt — or never getting into debt in the first place — is a great way to get a handle on your finances and free up your cash flow.

Stock Your Emergency Fund

TO READ MORE:  https://www.yahoo.com/finance/news/4-recession-proof-money-habits-125816895.html