5 Ways You Can Prepare For A Possible Recession In 2023

Alisha Zoethout • January 25, 2023

Recessions are a standard part of all economies, and in most cases, they are unavoidable. The government officially declares a recession when a country’s gross domestic product (GDP) declines over two consecutive quarters. 


And while you may read different accounts of where the Canadian economy is at today — it’s essential you start planning for a potential recession so you can protect your most important asset: your home.


Keep reading to learn how to make yourself “recession-proof” in 2023.

Will There Be a Recession in 2023?

Economists are predicting that Canada will have a short recession in early 2023. They anticipate a decline in Canada’s GDP in the first two quarters of the new year.


What Are the 4 Factors That Contribute to a Recession?

Four main factors contribute to a recession:


  • Economic growth: Drastic changes in commodities like oil, gas, and lumber slow or stall economic growth.
  • Inflation: Prices soar because of supply chain issues and high shipping costs, causing a chain reaction. The higher cost of doing business affects the amount of sales companies make and slows economic growth countrywide.
  • Interest rates: Banks raise interest rates during increased financial uncertainty to stop unnecessary spending and combat inflation. 
  • Unemployment: To counter the rising costs of business, companies tend to lay off many employees, leading to drastic unemployment.


How Should You Prepare For a Possible 2023 Recession?

If Canada gets hit with a 2023 recession, you can weather the storm by planning early for anticipated challenges and preparing yourself for the future in the case of financial hurdles like a recession or a job loss.


Our very own Amy Flowers shares five strategies for preparing for a possible 2023 recession:

Strategy #1: Reduce Spending

When a recession hits, no one knows how long it will last. The general rule is to have three to six months of cash saved to pay for your basic living expenses. 


To get a handle on your financial situation, ask yourself the following:


  • What are your basic monthly living expenses, including housing, food, utilities, childcare, transportation, and health insurance?
  • How much debt do you have, including credit cards, lines of credit, student loans, and other loans?
  • What expenses can you do without including cable, internet, cell phone, streaming services, monthly subscriptions, takeout/delivery, and other non-essentials?
  • Are there any significant life events in the near future, including a baby on the way, a wedding, retirement, or mortgage renewal?
  • Do you have enough savings to cover three to six months of basic expenses? If not, how much could you scrounge up quickly

Strategy #2: Pay Off Credit Card Debt Now

Credit cards traditionally have high-interest rates, so as inflation hits and your expenses go up, it’ll be harder to manage that debt.


Strategy #3: Prepare For a Potential Job Change

With a recession comes significant layoffs. So update your resume and be ready to reconnect with your professional network. Sometimes it’s all in “who you know”.


Strategy #4: Boost Your Hiring Value

Boost your skills with additional training to make yourself more valuable to your company. This can help deter them from laying you off or bolster your credentials in another field. 


Strategy #5: Find a Recession Proof Job

While no job is guaranteed, job security tends to be higher in these sectors:


  • Government
  • Health care (medical, specialized care, therapy, and counselling)
  • Public Utilities
  • Education 
  • Law enforcement
  • Fire/rescue/paramedic


Prepare For the Worst and Expect the Best

Recessions hit everybody hard with higher expenses, the possibility of unemployment, and sacrificing the luxuries of life. But being adequately prepared turns a stressful situation into a more manageable life occurrence.


Are you thinking of buying or selling a home in Milton or the surrounding areas in 2023 but are afraid of what the possible recession will bring? Contact Flowers Team Real Estate today for trusted advice on how you can take that leap.

Amy Flowers

About the Author

Amy Flowers

Broker, CEO & Team Leader — Flowers Team Real Estate

Amy Flowers is the Broker, CEO, and Team Leader of Flowers Team Real Estate, Milton's most-awarded real estate team. A licensed REALTOR® since 2001, Amy has spent more than two decades helping Milton families buy and sell with confidence. Under her leadership, the Flowers Team has been ranked #1 in Milton since 2009 and recognized in the top 1% of Royal LePage agents nationwide. The team offers full turnkey service, including in-house staging, professional photography, and a dedicated marketing department, so every client gets a seamless, concierge-level experience from first showing to closing day.

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