Shaggy: If you were always preparing for a recession everytime that an economist is warning of one, you would always be preparing. The reality is that everyone should use good financial judgement everyday of every month of every year. That means living within your means, saving as much as you can while living a fulfilling life as much as you can. I have worked in the manufacturing sector for the majority of my life and lay-offs are simply a fact of life, I think I may have gone through at least eight lay-offs, never went back to work for the companies either. Sometimes I already had another job lined up and sometimes I was out of work for a few months.