There are a number of ways a recession might affect you. If you work for a business that downsizes or shuts down, you could face unemployment. You could discover that you have to take a pay-cut to keep your job, or you might not get an anticipated bonus. Interest rates will probably be higher, so you’ll be less likely to take out a loan. Consumer spending also reduces during recessions, so you’ll probably be less likely to make a big-ticket purchase. Ensuring that you have an emergency fund in place is one of the steps you can take to prepare yourself for a recession.