WACO, Texas (FOX 44) — As inflation affects daily life prices, many are concerned about the possibility of a recession, but Dr. Ray Perryman of The Perryman Group said 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 said people are dealing with hardships already due to 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 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 said 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 done 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 stocks primarily 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 unless you are planning on using your 401K money in the next few months, it should be OK regardless of what type of account you have.