WACO, Texas (FOX 44) — As inflation affects daily life prices, many are concerned about the looming possibility of a recession. But Dr. Ray Perryman of The Perryman Group says there are ways to prepare if that happens.

“We’re going through a lot of inflation right now,” he said. “We’re going through some challenges for a lot of people. And so I think it is appropriate for people to be focused on the economy.”

There are two ways a recession can begin: either having two fiscal quarters where the growth product is going down or the National Bureau of Economic Research can vote to decide if the country is in a recession.

Perryman says that people are dealing with hardships already due to the inflation and the economic status is not going to change overnight.

“So I think it is appropriate for people to be focused on the economy,” he told FOX 44 News. “So I think the prudent thing for people to do right now, obviously, is take a look at their budgets, make sure they’re doing the kinds of things that that are that that are appropriate for them with what they deal with. A lot of people have retirement accounts.”

Retirement accounts, or 401K accounts, are all different depending on your job and what plan you chose.

Perryman says that if your account is an investment account, it could actually go up. If you’re in stocks, you may see a downward trend in the close future.

“Federal reserve is attacking this inflation by raising interest rates,” he said. “They’ve already that a couple of times. They’re certainly going to do some more.”

“And so your 401K, it might actually go up if you have a if you have stocks primarily in the in the in the system, that can fluctuate for a lot of reasons. Generally speaking, lower economic growth brings lower stock values over time. But by the same token, the market’s always looking forward.”

He ended by saying that unless you are planning on using your 401K money in the next few months, it should be okay regardless of what type of account you have.