If the threat of a recession gives you pause when it comes to your personal finances, experts say now is a time to prepare, not panic.

Worries about the economy increased this week when a fairly reliable recession warning emerged from the bond market. But without a crystal ball, it remains unclear when a recession might hit.

Still, financial experts recommend simple steps that would be beneficial in any economy but would aid households greatly in a downturn. Those steps include paying off debt, building an emergency fund and possibly postponing major expenditures such as a car or a home remodeling project.

People who anticipate having a child, going on a sabbatical or returning to school also need to have money set aside.

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