After almost a yearlong battle, inflation is finally showingsigns of coolingas signaled in this week’sConsumer Price Index report.

But it’s too soon to know if inflation will indeed start to go down.

And, with more layoffs in the news, it’s clear that everyday Americans are struggling.

Read more:It’s Been a Wild Ride for the Stock Market.

What happens during a recession?

It’s always helpful to go back andreview recession outcomesso that we can manage our expectations.

Read more:The Economy Is Scary.

Should we expect more layoffs?

With layoffs happening at big-name companies likeMetaandTwitter, job security is top of mind for many.

Right now the official Bureau of Labor Statistics unemployment ratesits at 3.7%, which is considered low.

So now could be the time to review your emergency fund if you think there’s a shortfall.

Ifyou are laid off, double-check to apply for unemployment benefits right away and secure your health insurance.

Aim to bulk up your cash reserves as well.

Will interest rates on loans and debts keep increasing?

The higher your score, the better your chances of qualifying and getting the best rates.

Should I stop investing in my 401(k)?

Regardless of what happens next week,continue investingif you could afford it.

My advice is to stop knee-jerk reactions.

This may be a good time to review your investments to be sure that you’re well-diversified.

Some onlinerobo-advisorplatforms offer client services and can provide guidance.

Historically, it pays to stick with the market.

Investors who cashed out their 401(k)s in the Great Recession missed out on a rebound.

In that case, you may want to look into401(k) loan options.

If you decide to borrow against your retirement account, commit to paying it back as soon as possible.

Should I wait to buy a home?

Despite a drop in rates this week,mortgage rateshave tiptoed over the 7% rate threshold.

And with house prices still high, buying a home right now could be more expensive than renting.

That’s nearly $200 greater than at any point since the year 2000.

All-cash offers and bidding wars continue in plenty of markets.

Don’t be hard on yourself.

You’re not doing anything wrong if you have yet to offer the top bid.

This allows you to pivot more quickly and secure your finances in a downturn.

Remember: Cash is power.

Long-term financial plans will always experience some declining periods.