While Deutsche Bank, one of the world’s largest banks, suggests that we should expect an economic downturn by 2023, other experts assert that consumers are unaware that we are already in a soft recession. Some might ask whether inflation alone is a tell, tell sign that a downturn is imminent? Economists say that a recession is driven by more than inflation, such as high food and gas prices. Alike the war in Ukraine and continuous COVID-19 shutdowns are also contributors.
According to Egan, CNN Business (2022), “The Fed will have to step on the brakes even more firmly, and a deep recession will be needed to bring inflation to heel.” ”Deutsche Bank economists wrote in its report with the ominous title, “Why the coming recession will be worse than expected.”
Instead of panicking or worrying about what could happen in 2023, I encourage you to be intentional with keeping calm, staying focused, and preparing for the rainy day. Here are some tips to recession-proof your finances during a recession and after the market corrects.
- Increase your emergency fund by six to twelve months to cover your obligations.
- Live beneath your means.
- Do not worry!
- Do not panic!
- Believers, remember that God is your source for all of your needs.
- Be at peace.
Christine Roebuck, Financial Strategist