How to survive 2023 recession?
According to experts, 2023 will be a year of deepening recession across Europe, including the UK.
Bank of England decision-makers were not prepared for Russia’s invasion of Ukraine. Once the UK joined its international neighbours in avoiding Russian gas and oil, energy prices quickly skyrocketed, pushing up inflation to levels not seen for more than 40 years.
Rising inflation means no less than that every month our wages are melting away.
Although the UK economy initially appeared resilient to the wider turmoil, gross domestic product (GDP) fell by 0.3% in the third quarter. This is widely expected to be the start of a prolonged and painful recession.
How can you cope with this difficult situation?
The best way is to control what we can control and minimise the risk of what is beyond our control.
When it comes to work and financial issues, you can protect yourself in several ways:
1. Start budgeting and building up an emergency fund
Plan and monitor your spending as you see how much you spend and on what. Find out what you can drop to save more each month. Your emergency fund should be sufficient to cover three to six months of expenses in case you lose your job.
2.Pay off high-interest debts
This applies in particular to credit cards. Being debt-free is a huge mental comfort and gives you back control of your money.
3. Invest thoughtfully
An early recession brings a collapse in the stock market. Stock prices are tumbling and it can be a good time to invest for the long term, but the high risk of bankruptcy for many businesses calls for the prudent investment of funds.
4. Look for other ways for extra money
Don’t hesitate to ask for a pay rise or compensation bonus. Double-digit inflation is a severe reduction of your income. Another way is to add another revenue stream through secondary activities. This is where proactivity and creative thinking come into play. Even a small and temporary project can bolster your budget.
5. Strengthen your labour market position
If you have the opportunity or spare funds, do further training and get relevant certifications. This will strengthen your position in your current workplace and increase your chances of finding a new one. Remember to keep your CV up to date and include all hard skills and successes.
6. Get in touch with recruiters
Redundancies during a recession are inevitable and can affect anyone – be prepared. Recruiters can be of great help and can offer you a better job in advance. Take advantage of this opportunity. Don’t hesitate to leave a place where you don’t feel safe and fulfilled professionally. At Talando, we support talent across the spectrum of the Tech Industry. Our experts focus on ensuring that each vacancy is perfectly matched to the candidate, their skills, preferences, and career goals. By supporting them through the entire recruitment process, recruiters ensure applicants are confident with their job change. Contact us if you’d like to see how convenient and fitting recruitment with our Talando experts can be for you.
Do you feel the spectre of the downturn and the necessary efforts are weighing you down? There is no need to tackle all of the above areas right away. Take the first step towards preparing for this challenging year, get it right and add further in the following months. Many of the tips above are excellent ways to succeed financially outside of the recession as well. Don’t give up on them when the economy rebounds. You will thank yourself for this in a couple of years.
