More evidence has surfaced that a recession could be looming sooner than we had expected. Existing home sales have dropped once again as the market retreats. A 5% drop in home sales may not seem like a "big deal," but it's a red flag to watch for when preparing yourself and family for the upcoming recession.

The actual slump was 4.9% lower than February's pace and it missed the Econoday consensus of a 5.3 million rate. The surge in February was the strongest in nearly four years, and the Realtor lobby group is attributing the March decline to a return to normalcy after that spike. Still, sales were 5.4% lower than a year ago.

All regions in the United States experienced this decline too, as it wasn't limited.  That means this particular red flag could be an even bigger deal.

Financial preparations often take a backseat to food and water storage, and it's understandable. Food and water are essential! However, in order to be well-rounded and prepared for the worst, opting for a "preparedness mindset" with regards to your personal finances could very well set you up for success, or even profit, during the next recession.