Bloomberg all but guaranteed the US will experience a recession in 2023
Fortunately, this recession should be more short-lived and less-extensive than the Great Recession. What are you some steps you can take to prepare?
1) Keep a Level Mindset – Recession is just a part of the economic cycle. We’ve enjoyed one of the longests period of economic growth in history, and it’s time for an adjustment. While we will have to make concessions in discretionary spending, this will not resemble the Great Recession.
2) Take Control of Your Finances – Analyze your Income, expendatures, and set aside a 3-6 month emergency fund if possible. Set a monthly budget and adhere to it. For me, Uber Eats is going to be the biggest concession, especially the way prices are now. A $7 pork tenderloin on my BIg Green Egg vs an $80 Italian food delivery. Good Lord now that I think of it I’ve really been wasting money.
3) Don’t Get Behind on Debt – Debt snowballs, and it snowballs even further when you’re behind. Pay off what debt you can going into the recessionary cycle, and do not let yourself get behind.
4) Don’t Panic-Sell Your Investments – The DOW is down around 8% from January and will likely be volatile for the foreeable future. No one has ever mistaken me for Warren Buffett, he’s only 5’10, but unless you’re in dire straits you don’t sell during a depressed market. It will rebound.
5) Keep Saving! – It’s a recession, but the rules of basic home economics still stand. If you’re able to save even 5% of your paycheck, your older self will thank you. Unless you want to work until you’re 90, that is…
6) Be Ready to Invest – While we never know the market has recovered until it’s already rebounded, the wisest investors buy at or near the bottom when others are keeping their money on the sidelines.