Seven out of ten economists expect a recession by the end of 2021, according to a survey by the National Association of Business Economics. Those with a 401(k) may feel the need to pull their funds or contribute less when whispers of a recession begin to fly. Everyone begins to wonder if they have saved enough, or if they invested correctly for when a depression hits; however, putting less into these plans due to the fear of a recession can do more long-term damage than good, outweighing the short-term benefits. For example, if the recession does not actually occur, this strategy could backfire, causing a delay in saving and retiring. This is why planning and researching is key. Having at least three to six months worth of savings for basic needs is the first step. Call it an emergency fund. Cutting back on bigger purchases and scaling down can be helpful as well. One thing you should avoid is borrowing from your retirement accounts. Also, this is not the time to take on additional debt. If you are someone with existing debt, it is advised to pay down debt with disposable income, such as a Christmas bonus. Do it while the market it strong now, so you don’t struggle at a later date.