6 Types of People Who Can Financially Survive a Recession

DNY59 / Getty Images

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

There’s been a lot of talk lately about a possible recession amid economic uncertainty, tariffs and market volatility. If this happens, it’s important to be prepared.

Certain groups of people may be more likely than others to weather the storm of a recession. Now is the time to figure out whether you’re in one of these groups, and if not, to see what you can do to prepare.

Keep reading to learn six types of people have a good chance of making it through a recession.

Also see five recession money rules to start following now.

The ‘Resilient Six’

“The ‘resilient six’ tend to have one or more of the three key recession survival traits — stable income, low fixed costs or flexibility,” said Kyle DePaolo, principal at DePaolo & May Strategic Wealth. But who exactly falls into these six groups? Here are the six groups that could thrive in a recession, per BlackDoctor.org.

• Young adults
• Renters
• People living on a fixed income
• Essential workers
• Investors
• Businesses with low operating costs

Consistent cash flow is the key for fixed-income earners and essential workers, DePaolo said. As for investors, they must stay liquid, harvest losses and turn economic volatility into opportunities — especially in quality market segments.

“Renters can relocate or renegotiate and agile businesses can pivot quickly or operate with lean overhead,” he said. “Ultimately, resilience comes down to predictability, adaptability and access to opportunity.”

But if you’re not in one of these groups, don’t worry Here are some tips that can allow you to better position yourself for a recession.

‘Unbundle’ Your Career 

Your career is composed of a variety of moving parts, so DePaolo advised breaking these skills up into monetizable parts.

“A corporate marketer might freelance on content, strategy or course creation,” he said. “Multiple small income streams can match or beat one big paycheck — and provide more buffer.”

Move From Employee to Intrapreneur

Become more than just an employee. You might not have a financial stake in the company, but you can become invaluable to your boss by taking an active role in helping the business thrive.

“Pitch cost-saving ideas or new revenue streams at your current job,” DePaolo said. “Employees who help their company stay lean often survive layoffs — and may get promoted.”

Convert Unused Credit Into a Safety Net

If you have good credit, DePaolo advised opening a home equity line of credit (HELOC) or a business line of credit before it’s needed. He said this can be a good idea for two reasons: It’s easier to get credit before you actually need it, and a recession could tighten lending.

Invest In Relationships

Who you know can help you get ahead in a recession. “Social capital is recession-resistant,” DePaolo said. “Build a trusted network now — referrals and job leads often emerge from strong personal connections when the economy falters.”

Adopt Habits To Be Resilient

Sarah Maitre, CFA, CFP, founder and financial planner at Camriel Advisors, agreed that you don’t necessarily need to box yourself into one of the six groups highlighted above to successfully ride out a recession.

“The key to weathering a recession is adopting the habits that make them resilient — living within your means, tracking expenses closely and being flexible enough to adjust when circumstances change,” she said. “One way to build this resilience is by maintaining an emergency fund that can cover several months of essential expenses, providing a buffer that makes it easier to navigate unexpected financial challenges.”

Essentially, many people can recession-proof their finances if they’re willing to put in the work. However, young adults, renters, people living on a fixed income, essential workers, investors and businesses with low operating costs might have to make fewer changes to thrive, which could increase their chances of success.

Share This Article: