Make These 7 Moves Before a Recession Hits in 2023

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Though it’s not written in stone, a recession is likely going to hit in 2023, and Americans need to be prepared. In order to get ready for what could be tough times ahead, consumers must make the following moves. 

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Build an Emergency Fund 

It’s never too late to start saving, and even stashing a little bit can go a long way. How much you should have saved depends on your age and where you are in life, but aim to have at least 3 to 6 months worth of living expenses in savings.  

Seize the Hot Labor Market 

The job market has been hot, and the U.S. economy added 263,000 jobs in November. Seize the day and move up the career ladder while there are still tons of new openings. This is also an ideal time to update your resume and get into the habit of “career cushioning” should layoffs come to your company. As GOBankingRates has previously reported, career cushioning means preparing for whatever comes next in the economy and job market — taking actions to keep your options open.

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Delay Major Buys That Require Financing  

The Fed just raised interest rates and intends to do so again in the new year. Now is not the time to purchase major goods that require financing. 

Focus on Paying Down Debts

Instead of making purchases, focus on paying down debts — especially high-interest debts.  

Invest in Stocks, Wisely 

When the economy enters a recession, stocks tend to slump, making it an ideal time to snag stocks at lower-than-normal prices. It’s critical to do research and work with a financial advisor and, perhaps most importantly, be willing to ride out your investment for the long haul, through thick and thin. 

Consider Bonds 

Bonds are great investments right now amid spiking interest rates. 

Jason Blackwell, head of investments at financial firm The Colony Group, told The Hill that U.S. bonds are “potentially a better tool at [investors’] disposal than they have been for the last ten years. When 10-year Treasuries with very little risk of U.S. default are paying you 4 percent, that’s a pretty good return — a pretty good yield that we’ve not seen in almost a decade.”

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Stay Calm 

Remember, the U.S. has been through recessions before and has always come back strong. It’s just a matter of riding out the storm and not doing anything out of haste or fear.

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About the Author

Nicole Spector is a writer, editor, and author based in Los Angeles by way of Brooklyn. Her work has appeared in Vogue, the Atlantic, Vice, and The New Yorker. She's a frequent contributor to NBC News and Publishers Weekly. Her 2013 debut novel, "Fifty Shades of Dorian Gray" received laudatory blurbs from the likes of Fred Armisen and Ken Kalfus, and was published in the US, UK, France, and Russia — though nobody knows whatever happened with the Russian edition! She has an affinity for Twitter.
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