(NewsUSA) - Tips from Edelman Financial Engines (EFE) to help you stay secure, no matter what the economy throws your way.

When deciding what actions to take in the face of potential recession, it’s important to remember this: You don’t control inflation. You don’t control GDP. And you don’t control any of the policy decisions that could lead to a recession.

But you do control your own financial plan. These are all steps you should take regardless of the economic environment, but they become even more important when uncertainty is high.

1. Diversify your portfolio – Diversification should be a cornerstone of any investment plan, and the goal is to reduce portfolio risk and optimize returns. Having exposure to better-performing investments doesn’t guarantee positive returns, but it does help dampen overall portfolio losses if we enter a bear market.
    
2. Check your emergency fund – The ideal amount you should have in your emergency fund to carry you through a potential job loss depends on several factors, including how at-risk your job is, how reliant your household income is, and how much of your budget is discretionary. This is a great time to make sure you have an appropriate amount saved in liquid assets.
    
3. Hold off on spending – The more money you have available, the calmer you’re likely to feel about a potential economic downturn. You might want to wait on big nonessential decisions that would eat into your liquidity, like buying a second home, retiring early or paying off large debts.
    
4. Increase your income – Consider upskilling at your current job, pursuing a promotion or starting a side business.
    
5. Look at your tax strategies – Recessionary environments can trigger permanent or temporary changes in tax regulations, to stimulate the economy. But tax planning should always be part of your financial plan, and it should happen all year long, not just during tax season or when something changes. If you haven’t met with a tax professional and a financial planner to talk about foundational tax strategies that make sense for you, do that now.
    
6. Make sure you are getting good rates on your cash – High-yield savings accounts, CDs and money markets generally offer higher rates than bank accounts. Take advantage of them.

Bottom line: The economy may be uncertain. Your plan doesn’t have to be. Start building financial confidence at www.edelmanfinancialengines.com.