With all the talk about an upcoming recession in 2023, now is the best time to prepare for the effects of a shrinking economy. While there may not be much you can do to influence the overall economy, there is plenty that you can do to influence your own personal finances.
- Make sure that you have an emergency fund of at least 90 days of your personal expenses in the event of employment interruption. The best way to do this is to be using YNAB.
- Sorry to those who work in restaurants & hospitality, but cut back or eliminate unneeded trips and meals out.
- Trim back or eliminate streaming services that you no longer use, sorry Netflix.
- Workouts at home were all the rage during the lockdown and may soon be again once people cut back on time spent at the gym.
- Keep your credit score high by making sure that all your obligations are paid in full and on time.
- Diversifying your income by taking on a side hustle if possible
- Keep your debts to a minimum
- Update your skills so that you are more desirable in the workforce
- If self employed then 10X your efforts to grow your business by radically increasing your prospecting and client management.
We don’t all feel the same effects of an economic downturn, but if you’re prepared then the effects will be much less severe on you personally. The economy is constantly changing and a downturn next year may also be followed by economic growth the following year. Be prepared for the changes ahead so you can adjust accordingly.
Today I am thankful for the 5K run with my neighbour when I really didn’t feel like going, that my wife is an amazing home cook and that some of the best food I have ever eaten was here at home.
I look forward to hearing from you in regard to your mortgage needs.
p.s.s- I should tell you that I am licensed in Nova Scotia Brokerage (2021-3000179) Broker (2021-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).
p.s.s.s You can download my new mortgage app here