If you have been watching the news it appears we are expected to enter into a recession here in the USA in 2023. Since it has been thirteen years since the last one, you may be wondering what to expect.
As a general rule:
– higher interest rates
– less borrowing
– higher unemployment due to layoffs
– cutting back on “extras” (dining out, entertainment, less travel)
– lower automobile and housing prices (housing prices are already falling, but it will be interesting to see what happens to auto prices given the low supply levels)
– many people will reduce investing, but this can be an opportunity to get some great deals
– stocks go down and many turn to bonds and certificates of deposit
It will be interesting to see how it plays out this time with the current shift in attitudes toward employment and purchasing.
If you are concerned that you will be affected by a recession now is a good time to pay down those debts- especially high interest debts like credit cards and some personal loans- and make sure you have some savings.
If you are in a good place, you may want to consider investing. If you have good credit and some savings, you may find this is your opportunity to purchase a house. Or you could invest in the stock market or crypto. Do your research now so you know what you want to do and what price you are willing to pay for it. This is a lot like waiting for that item that caught your eye at the store to go on sale or clearance. Just remember to never invest more than you can afford to lose and invest for the long haul.
If you want to discuss your personal situation and create a plan to ensure you are ready for whatever happens next, please email me. I offer free First Steps financial strategy zoom calls where we can discuss where you are now, where you want to be, and your best first steps to get there. If you decide you want to go further we can discuss which of my offers is the best fit for you. I have everything from free (DIY) to 1:1.