Why worry about a recession? Something like this happens every 7-10 yrs. If you are fiscally responsible, it shouldn't be an issue. My motto is "if we can't pay cash for it, we don't buy it." It seems to work every time. This is the perfect time to increase the shares in your portfolio. When you don't have debt, you can do very well with less income. Think long term and things work out. Maximize your 401k when the market's down. Don't by the BS that you need to have a house payment for tax purposes. I payed my house off over 6yrs ago and I am covering some ground now. The interest right off is nothing.