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Is A Recession Coming in 2023?

The economy has seen some major ups and downs in the last few years. When Covid-19 hit, it took quite the toll on the world’s economy. And in the United States, things are no different. We’ve seen supply chain issues, unemployment, housing market ups and downs, and some steep lows on the stock market. So, what does all of this mean? Is a recession coming in 2023? If so, how do we prepare?

What Is A Recession?

Before we dive into preparing for a recession, we want to first define what a recession is. A recession is a significant downturn in the economy, caused by a number of factors, but specifically a GDP (gross domestic product) that’s continually trending down. When this happens, the economy slows including employment rates, consumer spending, stock market values, and more. 

How to Prepare for A Recession

One of the biggest things to remember during a recession is that you can’t control the economy but you can control what you do with your personal finances. That may go without saying, but the best thing you can do to prepare for a recession is to make sure you’re financially stable. Here are a few tips that will help you do just that:

1. Save.

This may go without saying, but we need to say it anyway. Make sure you’re saving a good chunk of your income each month for emergencies. Some call it a “rainy day fund” and others an “emergency fund.” No matter what you call it, it should be anywhere from three to six months (or more) of your monthly expenses. Just remember: It’s for emergencies only. You never know what life will throw at you and having this fund will give you peace of mind as you move ahead.

2. Spend wisely.

When the economy is booming, it’s easy to want to spend money and splurge on quality items, extras, and things that we may not necessarily “need.” But during a recession, the idea is to make do with what you have and spend your money wisely. Part of wise spending is keeping track of your spending with a budget. A budget helps you see exactly how much money you have coming in and how much money is going out—every single month. Once you begin tracking your spending, you’ll get a better idea of where you need to cut back, how much more you can save, and where you can be more frugal with your spending.

3. Avoid taking on more debt.

If you’re not in a pinch, waiting to buy big ticket items that lead you further into debt is key. If you’re renting (and able to afford your rent), or if you’re tossing around the idea of buying a home, it’s best to wait as long as you can. The same goes for purchasing new cars. Taking on a hefty car payment when the economy is slowing down may not be the best idea (depending on your circumstance, of course). 

Either way, avoiding more debt and learning to manage the debt you already have is best practice. Get on a budget and figure out just how much you can begin to put toward your credit cards and other bills that are holding you (and your finances) back from saving more.

4. Work with an advisor on your investment strategy.

One of the worst things you can do during a recession is panic. Taking your money out of your retirement accounts or stopping your investments completely will hurt you in the long run. Work with your SageSpring advisor to determine a strategy for any investments you might be worried about. We’ll help you determine the best plan of action for your investments moving forward.

Remember, we can’t control the economy. But we can control how we respond to it—especially when it comes to our finances. Don’t panic and stick to your plan. And in the meantime, thinking through your spending and financial preparedness is one of the best things you can do to prepare for a potential recession.

Work with a local SageSpring advisor in your area today. We’ll make sure you feel confident moving into this next season.

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Jeffrey T. Dobyns


President, SageSpring | Financial Advisor, RJFS 

Jeffrey T. Dobyns

President, SageSpring | Financial Advisor, RJFS

Jeff Dobyns is President and Founder of SageSpring Wealth Partners. Passionate about serving his clients, he strives to truly get to know them, understand their goals, and provide them with financial confidence before developing and executing ongoing, strategic financial plans. 

In order to meet the highest standards of professionalism and ethics in the industry, Jeff is a CERTIFIED FINANCIAL PLANNER™ professional, a Chartered Life Underwriter, a Chartered Financial Consultant, and a participant of the Dave Ramsey SmartVestor referral service program.

Jeff has held executive positions with financial planning firms for more than two decades. He served as VP of Investments of Lykins Financial Group CPAs before founding SageSpring in 2002. Jeff has been recognized for his unwavering commitment to his clients, and as a leader among Raymond James financial advisors, earning membership in Raymond James Chairman’s Council every year since 2008.

Jeff devotes considerable time and resources to a number of causes. He serves as Chairman of the Board of Men of Valor, a prison ministry and mentoring program. He is on the advisory board of The Signatry of Middle Tennessee, which works with families to increase their charitable giving to their favorite causes, as well as the advisory board for Halftime Institute of Nashville, an organization that coaches marketplace leaders to discern and engage in their life purpose. Jeff also serves on the board of Send Musicians to Prison, which shares hope, healing and restoration with the imprisoned through musicians & artists. He is a past board member of Porter’s Call, a Nashville charity that provides free counseling for musicians and their families, and the Martha O’Bryan Center, which empowers those in poverty to transform their lives through work, education, employment, and fellowship.

Jeff and his wife, Amy, are grateful to be raising their four children, Gracyn, Hunter, and twins Tanner and Logan at Christ Presbyterian Academy. Jeff enjoys being outdoors with his family- boating, hiking, skiing, hunting and fishing.

Ramsey Solution’s relationship and agreement is between SageSpring Wealth Partners only. Raymond James Financial Services, Inc. is not affiliated with the solicitor arrangement between Ramsey Solutions and SageSpring Wealth Partners.

Membership is based on prior fiscal year production. Re-qualification is required annually.  The ranking may not be representative of any one client’s experience, is not an endorsement, and is not indicative of an advisor’s future performance. No fee is paid in exchange for this award/rating.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, and CFP® (with plaque design) in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.