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Recession is in the air. Analyse if there are any risks to your regular income. Do not be reckless about changing your job, or seeking new roles. Postpone decisions to quit or to take a break. Retain multiple earner status for the household. (Text by CIEL, ET Contributors) (Compiled by Shaveta Dua)

This is not the time to speculate on the dollar, oil or gold or real estate. During a recession, businesses do not make capital investment decisions. Nor should you. Be aware that many assets are inflated in value when demand is high and interest rates are low and will fall steeply when those conditions reverse.

Do not speculate on stocks and on unknown names. Keep off IPOs and small-cap stocks and set aside the temptation to think of a new name as the next multi bagger. Stick with the known and established names that will likely remain standing during tough times. Large-cap stocks and funds are better avenues.

This is not the time to try entrepreneurship. When interest rates are higher, and demand for goods and services are lower, you will struggle to establish and grow. Profit making businesses come under stress during recessionary times and resort to tactics to manage unsold stocks and underutilised capacity.

Falling prices are not the right times to sell. Unless you are in financial distress, do not liquidate your assets when prices have fallen. Ride through after making sure what you have is of good quality. Staying invested with quality stocks and assets is your insurance against permanent damage to your wealth.

Do not acquire new debt. Put a brake on borrowings. Cut back on debt if you can and live within your means. Even if you cannot save as well as before, make sure you are not adding liabilities at the wrong time.

If you are among the lucky ones who have regular surpluses to invest, choose debt over equity. Debt is your cushion against fall in equity markets and an income supplement during tough times. Overweight debt in your monthly allocations of your savings.

Cut expenses wherever possible to keep the income adequate for essentials even if there is a pay cut or job loss. Cutting back is the natural response of households to income risks and to higher interest rates.

Upgrade and update and prepare for an expanded role for yourself. Recession is the time to push all your assets to protect your income and wealth from erosion. If you invested in debt products and held back from investing in equity, you must pay attention to the human asset and invest in it so any deterioration in value is checked. Nothing is lost in a recession if you remain alive and well and employable.