As the world braces itself for an incoming economic recession, many people are wondering how they should manage their finances.

If one is hoping the housing market will return to somewhat normal levels as was the case before the pandemic in the next year, they may be in for a disappointment. Rates are anticipated to stay as they are for the foreseeable future at best, according to Jerome Powell,  chair of the Federal Reserve.

In terms of responsible financial spending, there are other aspects that people need to learn about.

For example, instead of spending the money on an Uber or a Lyft to travel a short distance, it is more financially responsible to walk.

It is an easy assumption to assume everyone can cut down on random expenses, such as video subscription services we forgot we signed up for.

However, even in this uncertain economic environment, there are still people who take bets on very unstable markets like cryptocurrency. The FBI reported that as much as $525 million had been fleeced off of people in 2022 through various cryptocurrency frauds and scams.

On top of a wavering economy, the future of the job market is also uncertain. The February 2023 jobs report revealed that unemployment reached a 53-year low. Headlines are still plastered everywhere of layoffs in various sectors — especially in the technology industry.

According to The New York Times, nearly 200,000 layoffs were estimated in the tech industry since the start of 2022.

The economic outlook for 2023 seems to be changing almost on a whim. At some points, it looks like an economic recession is almost inevitable, and other times it looks like the Federal Reserve may be able to tame inflation.

Saving money on the side, avoiding large expenses, and cutting away spending that is extraneous can go a long way to making financial security during uncertain economic times more probable.

In situations like this, it is best to cautiously approach your financial situation. It is wise to assume that a recession will occur. If it does not happen, that means you will be sitting on more money regardless.

Columns reflect the opinions of the authors and are not necessarily those of the Editorial Board, The Daily Iowan, or other organizations in which the author may be involved.