Facing the 2023 Recession, What To Do?

Facing the 2023 Recession, What To Do?


The issue of a world recession in 2023 continues to strengthen. Due to high inflation, central banks in various countries raise interest rates aggressively. These two factors brought the world into a recession.

Currently, a number of countries in the world have the potential to experience a recession. When a recession occurs, economic activity will experience a slowdown. Various economic sectors will experience the impact, such as declining state income, weakening people's purchasing power, so that many businesses are threatened with bankruptcy.

Recession is an inevitable part of the country's economic cycle. Although the various impacts caused by the recession sound so scary, but that does not mean there is nothing else that can be done to deal with it.

The following are ways to deal with a recession that are quoted from various sources:

1. Managing Expenditures Well

The recession hasn't really happened yet. However, it's better if you start managing your expenses from now on. To set it up, start by separating needs and wants. Some things that are not really needed, such as hanging out and vacations can be reduced in budget or intensity. This is so that you have more money that can be allocated for other things, such as saving, emergency funds, and investments.

2. Managing Debt

If you already feel that the amount of expenses you have done is more than your income, then it is time for you to stop the habit. The amount of expenses that are more than your income will force you into debt. Debt can also be in the form of credit card installments, bank loans, mortgages, and all other types of financing. Generally, a good proportion of debt is under 30 percent of your monthly income. However, during a recession, try to keep your debt-to-expenses ratio at around 20 percent. Another tip is to make sure to pay off debt starting with the big interest first.

3. Prepare an Emergency Fund

You may have realized that preparing an emergency fund is an important thing to do. However, did you know that the ideal emergency fund is one that is prepared to meet needs for 3 to 6 months? Therefore, to deal with financial problems that may arise during a recession, prepare an emergency fund from now on.

4. Start Investing

When there is a recession, saving in the bank is not an option that you can choose to save your money, because it has a high potential to be exposed to inflation. One type of long-term savings that you can choose is investment. Investments can be made in low-risk assets, such as time deposits, money market mutual funds, fixed income mutual funds, or retail government bonds.

5. Looking for a Side Income.

Recession is very vulnerable to causing various businesses to suffer losses until they go out of business, which leads to layoffs by the company. Therefore, to anticipate unwanted things like this, you need to find ways to find side income. You can take advantage of hobbies to start a business and generate additional income.

These are some of the things you should do when facing a recession. Therefore, do not feel afraid to face it. You can certainly face the various impacts caused by the recession if you already know the right steps to overcome it and prepare your financial condition from now on.

Source :

Akhyari Hananto

I began my career in the banking industry in 1997, and stayed approx 6 years in it. This industry boost his knowledge about the economic condition in Indonesia, both macro and micro, and how to More understand it. My banking career continued in Yogyakarta when I joined in a program funded by the Asian Development Bank (ADB),as the coordinator for a program aimed to help improve the quality of learning and teaching process in private universities in Yogyakarta. When the earthquake stroke Yogyakarta, I chose to join an international NGO working in the area of ?disaster response and management, which allows me to help rebuild the city, as well as other disaster-stricken area in Indonesia. I went on to become the coordinator for emergency response in the Asia Pacific region. Then I was assigned for 1 year in Cambodia, as a country coordinator mostly to deliver developmental programs (water and sanitation, education, livelihood). In 2009, he continued his career as a protocol and HR officer at the U.S. Consulate General in Surabaya, and two years later I joined the Political and Economic Section until now, where i have to deal with extensive range of people and government officials, as well as private and government institution troughout eastern Indonesia. I am the founder and Editor-in-Chief in Good News From Indonesia (GNFI), a growing and influential social media movement, and was selected as one of The Most Influential Netizen 2011 by The Marketeers magazine. I also wrote a book on "Fundamentals of Disaster Management in 2007"?, "Good News From Indonesia : Beragam Prestasi Anak Bangsa di dunia"? which was luanched in August 2013, and "Indonesia Bersyukur"? which is launched in Sept 2013. In 2014, 3 books were released in which i was one of the writer; "Indonesia Pelangi Dunia"?, "Indonesia The Untold Stories"? and "Growing! Meretas Jalan Kejayaan" I give lectures to students in lectures nationwide, sharing on full range of issues, from economy, to diplomacy Less
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