What is recession/inflation?
Recession and inflation are two completely different macroeconomic situations, which are defined as: recession: when a country’s economy is negatively affected, or “in recession”; deflation: when the price of goods or services decreases and tends to become lower in aggregate, i.e., at the aggregate level; inflation and deflation are linked with each other through the so-called Phillips Curve relationship.
How to prepare for a recession?
The future is always uncertain, but the best way to cope with economic uncertainty is by being prepared. If a recession comes, it’s important to know what steps you can take and where you can turn to in order to make the most of this time. This can help you avoid risk factors associated with a downturn, which could lead to more financial hardships than you already faced.
What can you do?
In a world where everything is going up, there are some things you can do to survive and thrive.
1. Have a backup plan.
2. Plan your meals in advance—especially the ones you know will be on sale later in the year/year. (If you don't have a plan yet, take this quiz.)
3. Always have your emergency kit on hand—don't be like me and forget it!
4. Know where your money is going and what's coming in and going out of your bank account. (You might want to start with this spreadsheet.)
5. Make sure you're taking care of yourself emotionally and physically—you'll need that energy when things get worse!
Consult an expert
At Infinity Financial, we're here to help you navigate the recession of 2023.
You've been through so much already. You've worked hard and sacrificed to get where you are now. But now it looks like it's time to face what's coming next.
We want to help you make the most of your money—and not just in the traditional sense of saving up for retirement or a house, but also in ways that will help you thrive.
And we don't just mean survive; we mean thrive.
We believe that the best way to do that is by consulting an expert who knows how to make sure your money is working for you—and us. We can help you find a plan that works for YOU and YOUR FAMILY, so even if things don't look like they should be getting better in the near future… well, at least you're prepared for anything!
