MONEY experts have shared eight tips for ways to get rich and stay recession-proof in 2023.
Some experts are predicting a recession in 2023 and want to help you be as prepared as possible.
1. Build your emergency fund
Ideally, you should have an emergency fund that covers three to six months of your expenses, experts say.
So if you typically spend $4,000 per month on bills, utilities, groceries, and other costs, you should have between $12,000 and $24,000 saved up.
Another expert – Steve Chen, founder of Call to Leap – recommends a budgeting app to help you achieve your saving and spending goals.
2. Cut back
It’s also a good idea to evaluate your daily expenses and cut back where you can.
This might look like making coffee at home instead of buying lattes, but could also be as big as bundling your car and home insurance.
Another tip for cutting back is to look for a cheaper cellphone and internet plan or cancel some of the subscriptions you don’t use regularly.
3. Condense where you can
Experts also suggest that you consider your major core expenses and where there may be room to condense them.
For example, if you have two cars but could get by with only one, now might be the time to scale down.
That could eliminate hundreds of dollars in lease, loan, or insurance payments, which could then be reallocated into an emergency fund or investment.
Emilie Bellet, founder of the educational finance site Vestpod and host of the Wallet Podcast, told Insider that people should really dig into their spending habits.
“When we recognize what specific emotions drive our impulsive spending, we can then be more mindful about our decisions.”
4. Find a side hustle
While a recession could occur in 2023, there are still plenty of jobs and a strong labor market, Insider reports.
Getting another job – even a part-time or freelance one – could help bring in more income and help you prepare.
Many side hustles can be done from home in your spare time but they do come with extra tax filing requirements.
5. Gain passive income
Separately from a side hustle, you could also work to set up passive income streams.
While they require more work upfront, they could be profitable in the long run.
Drop shipping and renting are two examples of passive income.
But Olamide Majekodunmi, founder of financial education blog All Things Money, warned against having too many passive income streams.
Majekodunmi told Insider that if you sink too much income into too many passive income projects in hopes that they’ll all take off, you might put yourself into an unwanted hole.
6. Create a nearly untouchable savings account
Once you’ve developed a solid savings plan, experts recommend transferring some of your money to an account that is virtually untouchable.
This can help reduce the urge or temptation to spend.
Cameron Huddleston, an author and director of Carefull, told Insider: “Have that amount, the total amount that you’re saving from all these ways that you’re going to trim your expenses in half, that automatically transfers to a savings account.”
Experts have said that 2023 may be a top year for investing.
Todd Baldwin, a self-made millionaire, suggested to Insider that people should “only invest in what you understand.”
That could mean real estate, cryptocurrency, or something else that you’re very familiar and comfortable with.
“You can make a lot of money, but you can also lose all of your money,” Baldwin said as a word of caution.
8. Evaluate your goals and educate yourself
With so many books, podcasts, and experts readily available, it’s easier than ever to learn about finances and how to reach your goals.
By educating yourself, you can also evaluate your goals and figure out the best ways to achieve them.
Ali and Josh Lupo, founders of The FI Couple, told Insider: “Knowledge is power, and helps you be a better informed participant in your financial future.”
“As the gap between your income and expenses grows, you can use that money to plan for retirement and/or invest,” they added.
And when you’re ready to invest, they suggest you “do your research and make sure you’re informed with whatever it is you’re putting your money in.”