The list of financial concerns going into 2023 is long and anxiety about the economy is Growing. Is it possible to avoid a recession in the new year? Sure. Anything is possible.
But preparing now for the “mild recession” former Boston Federal Reserve President Eric Rosengren told CNBC is “quite likely” coming, is a smart thing to do.
Do you have too much debt and not enough money to pay off debt? Step one, apply for a bank loan to pay off credit card balances and reduce interest payments. Then only use credit cards for groceries and other monthly expenses, then immediately pay the card balance. Doing this will help reduce overall debt while improve credit scores.
Shop around for a new cell carrier offering holiday deals, and don’t upgrade to the newest iPhone or Samsung when you do, keep your current phone. Getting the latest and greatest means the cost of the new phone is figured into the monthly rate in addition to service fees and taxes. That can mean the difference between a $140 per month payment and a $70 per month payment.
Bundling can help homeowners and renters alike reduce monthly premiums. In addition, increasing the deductible on the policy can help reduce payments, and an improved credit score can help too. In fact, good credit scores and clean driving records help reduce monthly car insurance payments. To reduce the total yearly cost for the policy, pay every 6 months instead of monthly. For more tips on reducing monthly car payments, Liberty Mutual has great suggestions.
If you are “car poor”, consider selling the expensive vehicle and purchasing something practical. CarMax has a handy website for those considering selling or buying a vehicle. And the perk of their business model is they come to you for pick-up and/or delivery!
Consider your skills and how you can use them to create extra income. Are you handy? Get a listing on Nextdoor and let neighbors know you’re available for handyman work. Thumbtack is a home services website where people who have skills can look for customers, and those needing help can search for tradespeople.
The best thing you can do to prepare for a potential recession is stop worrying about what you can’t control and what may not happen, and only focus on what you can change.