Part 3/10:
In times of economic turbulence, the consensus among personal finance professionals is unambiguous: preserving cash should be the top priority in 2023. The prevailing advice is to build substantial cash buffers—ideally 9 to 12 months' worth of expenses—to weather the storm. Traditionally, a three to six-month buffer is deemed sufficient, but given the uncertain environment, extending this period can provide extra security.
With expectations that interest rates will remain elevated for now and the likelihood of a recession impacting both equities and bonds, maintaining liquidity becomes a critical strategy. The goal is to maintain flexibility and avoid forced sales during downturns, ensuring readiness to seize opportunities when the time aligns.