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The No. 1 advice from financial advisors going into a recession

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Welcome to Personal Finance Insider, a biweekly newsletter that connects you with the stories, strategies, and tips you need to be better with money.

Here's what: Savings matter more than ever

While experts are still debating the shape of a 2023 recession — if it will happen, when, and how big it will be — Insider has been asking financial planners one of the most urgent questions on our minds: What do we do with our money today?

They have a lot of advice. Get your debt under control while you can, they say; diversify your sources of income where possible, and invest as much as you can afford. But many of them have the exact same tip: Start shoring up your savings now.

Financial planner Alex Alba told Insider it's important to pad your emergency fund, especially if you're worried about layoffs. Your emergency fund is three to six months' worth of living expenses, stored somewhere easily accessible. Financial planner Pamela Capalad recommends a high-yield savings account for this purpose. High-yield savings are offered by major banks, and many accounts are currently paying 3% or more.

Financial planner Adrianne Yamaki, who works exclusively with millionaires, says the same thing, pointing out that high-earners might expect lower bonuses, and that cash reserves will make unexpected expenses more manageable.

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Saving is easier said than done, but the experts are clear: The more cash you can set aside now, the better.

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