My current working model is that there are multiple simultaneous effects, mostly separable but interrelated. In order of decreasing acuteness:

a) asset bubble popping due to imminent rate increases. Crypto the obvious candidate for a correction that IMO was predictable? Future of the industry unpredictable (by me)

b) Tech stock correction and hiring freeze, due to skyrocketing value growth and some overextension during the pandemic. This is a good thing, and a healthy pullback on very recent overestimate of value gains. Fundamentals largely unaffected

c) More secular pullback of tech value into a lower equilibrium. High-growth stocks do well in historically low-rate environment, that we're potentially exiting

d) General recession expected. Marginal tech startups wiped out, bigtech generally still a great place to get paid a ton and buy the market while it's low

I'd love to hear if anyone has anyone else has any disagreements with my working model! I'm far from an expert, but using it for my own decision-making. Eg, I just quit my job, but I was planning to go back to bigtech so I'm not especially worried (plus I have tons of savings and frankly don't care about $ that much). OTOH, I'm not taking much time off, because I expect hiring and possibly salaries to start tightening even in bigtech.

1. Create a budget

Know how much you spend per month, and what are essentials (Rent, Food, Transport etc.) and what can go if you really need to (Netflix, eating out, etc.)

2. Have 3-6 months expenses in an emergency fund

Usually cash or things not likely to tank during a downturn like stock/crypto.

You can find more helpful info here: https://old.reddit.com/r/personalfinance/wiki/commontopics