Worried About a 2023 Recession? Here Are 4 things You Can Do

Maurie Backman

If you’re tired of reading about recession warnings everywhere you look, you’re no doubt in good company. For months on end, the media has been all over recession news. And while those warnings may be genuine in nature, they can be really disheartening.

The reality is that a recession could hit in 2023 – or not. Without a crystal ball, we just don’t know.

Is a recession inevitable in 2023? Here’s what experts are saying.

On the one hand, the economy is pretty strong right now, and unemployment levels are certainly on the low side. But aggressive interest rate hikes from the Federal Reserve could lead to a major pullback in consumer spending. And if that happens, it could spur a full-blown recession – and send the national unemployment rate upward.

That’s why your best bet is really to prepare for a recession – even though a downturn may not happen at all. And here are some key ways to go about that.

1. Give your emergency fund a boost

Recessions and unemployment commonly go hand in hand. That’s why it’s a great idea to boost your emergency cash reserves. You should really have enough to cover a minimum of three months’ worth of bills in your savings account. But even if you’re at that point, it probably wouldn’t hurt to pump a little more cash into your savings so you have even more of a cushion.

2. Shed some high-interest debt

Are you saddled with costly credit card payments? If you’re able to eliminate some or all of that debt, you’ll put yourself in a better position to get by during a recession. How so? If you lose your job and are forced to live on less, not having monthly payments hanging over your head could make it easier to manage financially.

Now, you may be thinking, “Well if I was in a position to pay off my credit cards, I would.” But that leads to our next tip.

3. Pick up a side hustle

Today’s gig economy is strong and steady. And so you may find that it’s pretty easy to find work you can do on top of your main job. If you’re willing to put in the time, you might manage to boost your income nicely. And you can use that extra money to pad your savings or pay down the pesky credit card balances that are costing you a lot in interest.

4. Go out of your way to impress your boss

Being well-liked and respected at work won’t guarantee you’ll be spared a layoff if your company is forced to downsize its staff. But having your boss be a fan of yours also wouldn’t hurt in that scenario. So in the coming months, do what you can to get on your manager’s good side. That could mean beefing up your skills, taking on an extra project, or just plain having a positive attitude at a time when your colleagues might be grumbling about the additional tasks they’re taking on.

A lot of people are worried about a near-term recession, and understandably so. Rather than spend time stressing over something that may not actually come to be, make these moves so you’re better prepared in case things do take a turn for the worse.