No. 1, your money will survive the recession, according to a call for proposals

• There is no way to protect your money from the recession, but the economic turmoil should not ruin you financially.
• Lauren Anastasio, SoFi's approved financial planner, said investors with the "power" to ignore market fluctuations during a recession would come out as winners.
• In other words, if the money you have invested in the markets is not essential to your current financial plan, everything will be fine.
• But you should only invest after paying the high interest rate debt and at least started building an emergency fund.
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If you are investing in the markets, there is virtually no way to protect your money from the recession.

You can be certain that an economic downturn will affect your investments one way or another. But if you do not rely on that money to live on a day-to-day basis or for a future expense, it'll be all right, says Lauren Anastasio, a licensed financial planner at SoFi, a personal finance company.

"If you are in a position where you are investing for the long term and you have the opportunity to ignore what is happening in your account balance, because you do not need that money to live on it. in the coming years, big indicator [you can survive a recession], "Anastasio told Business Insider.

In other words, if your investment strategy is based on long-term growth – for example, you build a nest egg for retirement in a few decades – it is likely that money is not essential for your budget current.

Here's Anastasio: "Knowing that their investment accounts could stay intact and no matter they fall by 50%, they end up bouncing back, if they have the means – not the will, because most of us have the time has stood the test of accounts – but if they have the ability to ignore the noise and fluctuations because they are not in a position to sell the market because they have need cash, that's the situation that someone wants to be in. "

If you have an emergency fund and little or no high interest debt, a recession will not ruin you

To be sure, most financial experts recommend investing only after paying high interest rate debt and created an emergency fund, which can serve as a safety net if you face an unforeseen expense or if you lose your job. Your retirement accounts are usually the best place to start investing because they focus on long-term growth anyway.

In addition, it is rarely beneficial to be obsessed with your investments, regardless of the state of the markets. Nevertheless, it is understandable that many of us panic when we know we could lose money, says Anastasio.

"While we are very nervous, the last thing I want people to do is sell frantically off the market because they worry that everything they own will be reduced to zero," she says. .

"For all those who are in their careers, the most important thing for them will not be what will happen to their investments," says Anastasio. "It's going to be" Do they have enough savings to go through an uncertain period if something had to happen to their income? "

Even those in the safest jobs may see their income decline during a recession, she says. In addition to starting at least to create an emergency fund, repayment of high interest rate debt should be a priority, Anastasio said. "This is going to be useful at any time simply because it will be particularly expensive and a burden to try to achieve other financial goals."