JACKSONVILLE, Fla. – You may want to think twice about how much you’re spending.
Chances are the nation could be heading into a recession next year.
“No one is predicting a recession now, they’re predicting, or some are predicting there may be a recession in 2023. I’m concerned about it,” said President Joe Biden.
While this is the last thing anyone wants to hear, financial planner Jeff McDermott says there’s no need to panic. He suggests now is a good time to start saving up.
“Probably the first thing to think about is to sure up your balance sheet a little bit and take care of those emergency reserves. If you keep three or fourth of months of reserves available maybe extend that a little more. If you don’t have much cash on hand you may want to think of putting some of that away,” said McDermott, CEO of Create Wealth Financial Planning.
There are several contributing factors that are making a recession in 2023 likely to occur.
“Most recently the global pandemic and Russia’s invasion of Ukraine underscore large economic shocks and disruptions that must be addressed. Downturns are likely to continue to challenge the economy,” said Janet Yellen, U.S. Treasury Secretary.
McDermott says the best piece of advice is to just be smart with your spending.
“Now is the time to look at your expenses and consider again if we had some hard times if we had a job loss, what would we need to cut back on? Don’t panic. No drastic moves. These recessions happen, it’s a cyclical part of our business cycle.”
