A recession often means a slowdown in economic activity, which translates into job losses, pay cuts or underperforming investments. While it is difficult to predict what the economy is going to do next, there are steps you could take to protect yourself and your finances.

Follow these five tips to strengthen your finances before a recession hits.

Create a budget

You may be tempted to spend outside your budget when your finances are in good shape — and it could be worthwhile to treat yourself to a special dinner every now and then. However, having a budget to follow is more important than ever when money is tight or the economy looks like it may be headed downward.

Take a careful look at your spending. Examine every expense over the past few months and label each one as a need (such as

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