Mark Cuban says you need to do these 7 things during a recession

Economic swings are to be expected, and a recession is included in those inevitable swings. And whether a recession arrives this year or later, many Americans have already begun the prep work for a tougher economy. Notable economists debate the timing, but billionaire entrepreneur Mark Cuban has been warning about a recession since 2025, citing factors such as tariffs and weakening demand.

Cuban argues that financial preparation matters before the recession officially begins. His approach is simple: plan for a recession by focusing more on building financial resilience through your everyday decisions, and focus less on forecasting. And coming from someone who has built a $6.5 billion fortune, he emphasizes being strong financially now, so you have flexibility later, no matter what the economy does.

Below are the key steps he recommends for how to get ahead financially before a recession arrives, rather than when we are in the thick of it.

1. Refinance high-interest debt before it becomes a bigger problem

Amongst Cuban's recommendations is to first tackle expensive debt while it's cheaper to borrow, and while "Interest rates are at an all-time low." Now would be the time to consider refinancing credit card balances through a lower-interest personal loan, or a balance transfer if it reduces what you pay over time. Cuban also recommends refinancing student loan debt. But, be cautious that federal student loans come with borrower protections that a private refinancing may eliminate, so it's important to take that into consideration.

2. Build a cash cushion of at least six months of expenses

The saying cash is king is a saying Cuban aligns with. He believes cash is one of your biggest advantages during an economic downturn. Try building enough savings to cover at least six months of living expenses. Keep the funds in a low-risk, easy-to-access account such as a high-yield savings account or CDs. As he puts it in his September 2019 X post, he states, "The greatest opportunities come when you are one of the few with cash."

3. Understand how a recession could affect your job

The reality is that preparing for a recession isn't just about your budget. Recession preparedness is also seated in understanding your career and how the economy could affect it. Cuban encourages workers to understand how their employer makes money and whether a slowdown could affect things like sales, hiring, or staffing levels. So, by knowing where your role fits into the business, you are further able to anticipate risks before they become layoffs.

4. Become indispensable at work

Cuban believes employees should focus on becoming as valuable as possible before the economy sees a downturn. Consistently produce strong work, solve problems, and understand how your contributions could support the company's success. Workers who lack self-awareness about their performance are often among the first to go in a round of layoffs. "Do all you can to be great at your job," Cuban says, "Be someone who reduces stress rather than increases it for your boss and everyone around you."

5. Live like a student by cutting unnecessary spending

Another piece of Cuban advice is to live like a student. Lower your monthly expenses before you are forced to. "The lower your bills, the lower your stress," Cuban says. Cutting back on discretionary purchases and entertainment costs and doing things like limiting yourself to one streaming subscription and cooking at home more often could make all the difference. By cutting back these expenses, you are afforded greater flexibility if your income is to change unexpectedly.

6. Buy used instead of new when possible

Stretching your dollars becomes all the more important during uncertain economic times. Choosing to buy things used instead of new (when it makes sense) could be a powerful play. Whether you are shopping for furniture, clothing, electronics, or even a vehicle, pre-owned items could significantly reduce your out-of-pocket expenses. Buying used instead of new typically won't sacrifice functionality, which leaves you more cash to save, too.

7. Don't make financial decisions based on recession predictions

While Cuban has voiced his concerns about the economy, he also warns against making financial decisions solely because someone predicts a recession. "Don't listen to any 'experts' about whether or not a recession is coming," Cuban says. Economic forecasts are notoriously hard to get right, and really no one knows exactly when a downturn could begin. Instead, Cuban recommends building financial resilience that is beneficial to you regardless of what happens next.

Bottom line

Cuban's recession advice isn't really about predicting when the next downturn would happen, but instead about building yourself into a stronger financial position before one arrives. Whether the economy contracts this year or several years from now, things like lowering debt, building your savings, and keeping your spending in check could make it easier to weather any unexpected (and uncontrollable) setback. You could also convert cash into essentials like food and household goods before costs increase.

One of the biggest lessons from Cuban's playbook is that preparation creates opportunity. Households with manageable expenses and healthy cash reserves are often better equipped to handle any job disruptions or inflation. You would also be positioned to take advantage of opportunities that allow you to build real wealth, like investing or changing careers when others around you may be forced to pull back.