Is a recession coming? A recession is a period of time where economic activity becomes low, and the country will have less economic output overall. Many banks and professionals warn that the United States may be heading for a recession next year. One of the possible reasons is how the government has raised interest rates this year, and this will not be stopping soon. Many stocks have also been down recently, with the Dow Jones Industrial and the S&P 500 going through drops. Recent events such as Russia’s invasion of Ukraine and the Covid-19 are not helping the outcome of the current economy. Many executives of the financial world say that a recession is almost inevitable and has a high risk of happening. The country is entering an era of stagflation, slow economic growth, and high inflation. 

How would this affect me?

The nervousness that comes with today’s economy is sending ripples throughout many systems in our country. With mortgage interest rates climbing higher people are nervous about buying homes, and as inflation rises, many people do not want to buy as much since prices have been increasing. People are incredibly hesitant to buy luxury goods, when the economy is so uncertain. During a recession many things will occur, there will be a lot of people that lose their jobs, people’s health gets affected when they do not have a job, and paying back loans and debt would be hard.

How can I prepare?

There are a number of things someone can do to prepare for a recession. You should pay off any debt you have, save some more money, spend less on luxuries, and find a career that can stay safe even under severe economic conditions. As long as you do not rashly spend. and have enough money to last you and your bills around at least half a year, you will be able to get through the recession without going through anything horrible.