Is an Australian recession coming? If you’ve glanced at the news more than once in the last year, you’ve probably heard talk about an upcoming recession in 2023, especially in the US.
What is a recession?
A recession basically means that, just like Owen’s hairline, things in the economy are going backwards when they should be going forwards. The retraction also has to happen for an extended period of time before it’s considered a recession…think Ed Sheeran’s Mathematics Tour, which started in April 2022 and won’t end until September 2023. Unlike Ed’s tour, we don’t exactly know exactly when a recession will start and finish, but it needs to happen for at least 6 months before it’s official (although the specific number is up for debate).
Recessions are typically associated with pain for a regular person like you and me because when the economy is struggling, spending slows down, the unemployment rate increases (because sadly some companies have to make redundancies) and we can feel less confident using our money to invest and take risks. Overall, it’s not too great.
But regardless of your views on whether or not a recession is on its way (a panel of 29 leading Australian economists are leaning towards no recession for Australia this year), there’s plenty you can do to build your own personal moat, and fend off any financial challenges that could come your way.
When the hard stuff comes knocking at your door, you’ll realise just how much preparation comes in handy.
This episode will provide you with six actionable ways to prepare yourself financially for any challenges you could face in 2023.
