The current concern is the economic situation. The stock market has entered a bear market and inflation has soared with no sign of slowing down. So the Fed raises interest rates to eventually lower prices. Such a move by the central bank, however, could bring further pain as weak economic activity could trigger a recession.

This is an informed estimate to determine the specifics of the recession. Anyone trying to convince you is probably trying to sell you something. We can now use history to provide perspective, be more proactive about financial decisions we can influence, and quell the desire to panic. To do this, we need to look back at what happened during previous recessions and scrutinize our financial goals to determine which controls to apply to stay on track.

Here are some concrete steps you can take to increase your financial security and resilience in a volatile environment.

Plan more, worry less.

The good news about the latest recession estimates is that they are still only forecasts. So, in the absence of real needs and difficulties, it is still possible to strategize in a recession.

Increase your cash reserve

Having your money in the bank is essential to essentially weathering a recession. The high 10% unemployment rate during the Great Recession of 2009 attests to this. Affected people take an average of 8 to 9 months to get back on their feet. On the other hand, those lucky enough to have a lot of emergency funds are able to pay for their housing and buy some time while making less stressful decisions about what to do next.

To get closer to the recommended 6 to 9 months of rainy day reserves, you may need to rebalance your budget so you can put more money into savings now. Splitting monthly subscriptions might make sense, but calling a bookkeeper (from a utility company to a cable company to an auto insurance company) and asking about sales and rebates might be a better plan, and it doesn't seem to be at a disadvantage.

Find a second source of income.

Searching online for "how to make money" has always been common, but it's becoming more common as people seek to diversify their income streams on the eve of a potential recession. Diversifying your sources of income can help reduce income instability from unemployment, just as it can help diversify your wealth.

Avoid hasty investment decisions.

Given the recent warning signs in the stock market, it might be hard to feel comfortable with your portfolio. However, history shows that if you're 10-15+ years from retirement, it's best to weather the ups and downs of the market. Fidelity claims that during the 2008-2009 financial crisis, people who continued to invest in date products, including ETFs and mutual funds, had larger balances than those who reduced or stopped investing.

If you haven't already, consult your online broker about automatic rebalancing. This ensures that your instruments are properly weighted and fit your investment objectives despite market volatility.

Lock in interest

Interest rates will rise as policymakers raise interest rates to fight inflation. As a result, anyone with an adjustable-rate loan is likely to get some bad news. Also, people with credit card balances face difficulties.