Though it’s not written in stone, a recession is likely going to hit in 2023, and Americans need to be prepared. In order to get ready for what could be tough times ahead, consumers must make the following moves. 

                By                    Nicole Spector

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Build an Emergency Fund 

It’s never too late to start saving, and even stashing a little bit can go a long way. How much you should have saved depends on your age and where you are in life, but aim to have at least 3 to 6 months worth of living expenses in savings.  

Seize the Hot Labor Market 

More From Your Money: Choose a high-interest saving, checking, CD, or investing account from our list of top banks to start saving today.

Delay Major Buys That Require Financing  

The Fed just raised interest rates and intends to do so again in the new year. Now is not the time to purchase major goods that require financing. 

Focus on Paying Down Debts

Instead of making purchases, focus on paying down debts — especially high-interest debts.  

Invest in Stocks, Wisely 

When the economy enters a recession, stocks tend to slump, making it an ideal time to snag stocks at lower-than-normal prices. It’s critical to do research and work with a financial advisor and, perhaps most importantly, be willing to ride out your investment for the long haul, through thick and thin. 

Consider Bonds 

Bonds are great investments right now amid spiking interest rates. 

Jason Blackwell, head of investments at financial firm The Colony Group, told The Hill that U.S. bonds are “potentially a better tool at [investors’] disposal than they have been for the last ten years. When 10-year Treasuries with very little risk of U.S. default are paying you 4 percent, that’s a pretty good return — a pretty good yield that we’ve not seen in almost a decade.”

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Stay Calm 

Remember, the U.S. has been through recessions before and has always come back strong. It’s just a matter of riding out the storm and not doing anything out of haste or fear.