Here's what you can do to prepare as economists predict harsh recession
MIAMI - Economists are predicting a harsh recession next year, but will you be able to handle it? CBS4 talked with one family and a business professor about what to expect.
"We're seeing you know organizations with budget cuts, which often result in layoffs," Temante Leary said.
Leary is an engineer working in tech, and he's not only concerned about how a recession could affect his work, but his family. "Everything cost more these days, in particular, I've seen real estate market, rents, home prices skyrocket."
He thinks the signs are pointing toward a recession. Something he recalls from the 2008 recession; now he's trying to figure out how his family can come through it in good shape. I may mean having to keep the family on a budget. "You know wholesale shopping has been around a long time," he said.
Meanwhile, at Florida International University, Craig Austin a professor at the college of business thinks the recession is already here. "Its effects have been masked by the other parts of the economy that are still fairly strong," he explained.
And as the feds have signaled, they plan to raise interest rates again, and likely again after, this will make it harder for everyone, particularly those with the lowest incomes.
"I think you will see prices of homes go down next year, the question is how many of those people will have the wherewithal to buy a house," Austin said.
Gerald Joseph, 21, is also part of the Leary's household, he already has two jobs, and recognizes the cost of living in South Florida is pretty high, especially for young people starting out, which is why may consider a move.
"Everything down in Texas is much more affordable," he told CBS4.
So, if the recession really sets in 2023, what can be done now? Experts say to start with a budget, cut out unnecessary expenses, shop around for the best options on products such as car insurance, pay down credit balances, and start building an emergency fund.
With all the indications, Leary is nervous but chooses to keep a positive outlook. He plans to save a little and potentially take advantage of a downturn in the economy to buy stocks.
"You can invest at a lower buy-in than when the market is higher," he said.