(NewsNation) ⁠— Deutsche Bank is warning that the economy will tumble into a recession.

With rising Fed interest rates, Deutsche economists say a U.S. recession will likely begin late next year as the country grapples with some of the fastest-growing inflation in decades.

Recession is a word that sends shivers down the spines of financial forecasters and hard-working Americans, which is why it’s not usually tossed around lightly.

But the economics team at Goldman Sachs is projecting a “significant” chance the economy will fall into a recession sometime in the next 12 months.

“We know most Americans are woefully undersaved for an emergency. Most of us don’t even have $1,000 saved, but I cannot stress enough the importance of just putting whatever you can aside every month. Even if that’s just $5 towards a rainy day. It’s the classic rainy day,” HerMoney’s Chief Content Officer Kathryn Tuggle said Wednesday night during an appearance on “Banfield.”

Tuggle encouraged having cash on hand, especially when nearing retirement.

There are additional actions people can take, right now, to prepare for a potential recession.

- Create an emergency savings fund

- Eliminate debt

- Reevaluate your lifestyle choices

- Assess your career decisions

- Move your investments

America’s “Money Smart Guy” Matt Sapaula also offered insight on the matter.

“If you’re going to go through your finances, find out which one of your liabilities can be paid out faster and sooner. Therefore you don’t have to leverage or add more problems to the existing liabilities that you have right now,” Sapaula said.

When reflecting on American spending habits during the pandemic, Tuggle stressed it’s time to cut back.

“We started maybe getting an extra streaming service. Maybe we have Netflix and maybe we have Apple TV, and maybe we have all of them because we want to catch our favorite shows. You’re gonna have to cut back,” Tuggle said.

“This really couldn’t be coming at a worse time. Because a lot of people who had to deplete their emergency funds in 2020 just to survive, they haven’t had time to build those emergency funds back up yet,” Tuggle added.

By Elizabeth Jassin, Ashleigh Banfield