 What are the three most important steps to take to prepare for a recession? 1. Create an emergency fund by setting aside money to cover three to six months' worth of expenses in the event of an unforeseen expense or job loss. 2. Reduce debt to relieve financial burden during a recession, pay off high interest debt, restrict new borrowers. 3. In order to withstand market volatility and guard against losses, diversify your investments by considering a combination of stocks, bonds, and cash equivalents. Have fun preparing.