Preparing for a financial emergency isn’t easy, but it’s crucial. With the labor market slowing, interest rates rising, and consumer spending declining, concerns about a potential recession are growing.

Hosts of Yahoo Finance’s Living Not So Fabulously podcast David and John Auten-Schneider are all too familiar with this. David and John speak with Wealth! anchor Brad Smith as part of this week's Investing 101: 5 Rules To Build Wealth special.

John notes it’s important that investors “get crystal clear on the state of your finances” in order to control unexpected outcomes. He advises traders to do this by downloading digital apps to your bank and credit cards.

In the event of an economic downturn, David believes it's vital for investors to stick with their “true values and principles” when it comes to their portfolios. It’s more than likely they will be able to ride out any volatility in markets.

Catch more of David and John as hosts of Yahoo Finance's Living Not So Fabulously.

For more expert insight and the latest market action, click here to watch this full episode of Wealth!

This post was written by Kristen Tsoubanos.