2 steps to take to protect your money from a recession, according to a financial expert and bestselling author

It’s near impossible to recession-proof your money, says financial expert Ramit Sethi.

“The market will go up, the market will go to down. Nobody knows. Nobody can tell you. It doesn’t matter if they’re on some TV show or anything. It’s all bullsh–,” Sethi, who recently released the second edition of his bestselling book ” I Will Teach You To Be Rich,” told Business Insider.

“A better question is, ‘Can I have a diversified portfolio?’ … And do you have enough cash just in an emergency fund in case there was something bad that happened to you on a day-to-day living basis?” Sethi said.

Regardless of the state of the markets, diversifying your investments across, and within, stocks and bonds and securing an emergency fund are two of the most important steps to take with your money, he said.

“That’s the best thing you can do,” he said. “What you shouldn’t do is try to predict what’s going to happen because you will almost always lose.”

Sethi recommends keeping cash reserves equal to at least three months and, ideally, up to a year’s worth of expenses to fall back on whenever it’s needed.

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