Matthew Cox, of Skipton Financial Services, said: "It is never too late to take steps to recession-proof your finances. When everything is looking rosy, managing your finances seems easy, but it is at times like this when it is even more crucial to keep an active eye on your finances.

"Whilst we understand many people will be nervous about the impact of any possible recession, the fact is that, with some basic planning, you can mitigate the effect on you and your family. People will spend 10 times longer planning a holiday than planning their finances yet only the latter will give their family long-term security and peace of mind.

"Now is not the time to be an ostrich and put your head in the sand – now is the time to adopt a battle-like mentality and do everything you can to protect yourself for anything the coming months might throw at you."

Here are Skipton Financial Services' simple steps to storm-proofing your family's finances:

If you are worried that you have neglected your finances, the first and best bit of advice we would give is to do a simple budget plan of what you have going in each month and, more importantly, what your monthly outgoings are. It is much quicker and easier to reduce what's going out each month, than increase what's coming in.

With the price of utility bills rocketing, switching from uncompetitive gas and electric suppliers could save you a packet each month. You should also review any other providers you are not tied into, including mobile phone, landline and broadband suppliers. Check out www.simplyswitch.com

Cancel any non-essential regular payments. For example, consider going pay-as-you-go at the gym if you are not getting value from the monthly membership fee. Also check all your current direct debits – you may find you are paying for something you no longer need.

Ideally everyone needs to have three to six months' salary (at least £5,000) on instant access for short-term needs and emergencies but it is vitally important that this cash is still working hard for you. Check out your rate of return, particularly if your rainy day fund is in a bank current account. You can receive six to seven per cent on online accounts but savers who prefer a face-to-face service could do worse than look at Skipton Building Society's Branch Access account, which pays 5.35 per cent*.

Check any outstanding credit card or loan debts. If you are not paying 0 per cent, it is likely they are costing you more each month than you are receiving in interest on your savings, you should pay them off immediately, rather than leave surplus cash sat in an account.

Ensure you are utilising your Isa allowance for preferential tax treatment – currently £3,600 for cash Isas and £7,200 for stocks and shares Isas. Don't assume stocks and shares Isas mean lots of risk. There are products out there which can guarantee your capital if that's what you need, with others which don't offer such a guarantee but do offer the potential of greater returns.

It is important to ensure you have the right kind of protection for you and your family. Those with young families are probably most at risk if a recession hits so you should ensure you have adequate life insurance.

To have a clearer picture of what investments they have already got, investors can consolidate all their existing investments through a platform such as Fidelity Funds Network. This way at the click of a button you can see the performance of all your investments in the same place. Visit www.sfsinvestdirect. co.uk.

If your financial goals are medium/long-term and you do not need short-term access, historically investing in shares over five years or more is likely to generate better returns than investing in deposits. Do not worry if you cannot afford to invest lump sums. Investing regular amounts each month is actually less risky as you will benefit from averaging out costs.

Higher-rate tax payers can make the most of any surplus income by making additional pension contributions. They will receive basic tax relief (20 per cent) on contribution and a further 20 per cent tax through their tax returns.

It is vital to annually review the make-up of your investment portfolio to ensure there is adequate geographical and asset class diversification.

* Includes 0.25 per cent bonus for first six months (5.1 per cent AER).

Any readers wanting financial advice on storm-proofing their finances, can call Skipton Financial Services on 0800 137832. Skipton Financial Services is a wholly-owned subsidiary of Skipton Building Society.