A recession could impact over 50% of African Americans

The pandemic having struck almost three years ago, Black Americans’ economic growth prospects have been affected depending on their financial status.
54% of Black Americans reported their income rose in the past 12 months, which was higher than the 44% of White Americans. Black Americans said they would lose everything in the event of a recession at a slightly higher rate (58%) than Americans overall (55%). The phrase “lose everything” could potentially mean someone’s savings, stocks/investments, or home (if they own one), though this was not specified.
Real Estate Witch funded an online survey which provided the data for a new study. The respondents answered questions that pertained to their economic outlook and expectations for 2023. Part of Clever Real Estate, Real Estate Witch is an education platform for homebuyers, sellers, and investors.
Of the 63% of Black Americans surveyed, a majority had a pessimistic outlook on the economy, asserting that the U.S. is currently in a recession, with 70% of them living paycheck to paycheck. Blacks are more optimistic than all Americans (69%) who said there is a recession and (74%) who are living from one pay period to the next.
On average, Americans ranked the economy and inflation as the most concerning issues, followed by affordable housing, crime/gun violence, abortion/reproductive rights, and climate change as the least concerning issues when asked to rank them. COVID-19, as well as other issues such as racial matters, were also discussed.
Although the news is not entirely positive, there is still some good. 58% of Black Americans anticipate the U.S. economy to recover in 2023, compared to the 51% of Americans overall who share this belief. 31% of Blacks are convinced their personal finances will be better in 12 months, compared to 25% for all. Black Americans were more optimistic about the housing market in the next 12 months than Americans all told, with 26% believing it would be better compared to only 18%.
Matt Brannon, a Clever Real Estate data writer, provided some tips for coping with a recession.
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Paying off your debt should be your priority, especially the high-interest credit card debt. Unless you take steps to address this debt, you may find yourself further in debt due to accumulating interest over time.
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In preparation for potential layoffs, it is wise to make sure your resume is up-to-date and to start building an emergency fund. Updating your resume now, even if you are not actively job hunting, can help reduce the possibility of income loss in the event that your current position is made redundant, as you will be able to quickly reapply for other jobs. You should also set aside a portion of your income to build an emergency fund, so you can have a financial cushion in case of unemployment for a few months. Without an emergency fund, the risk of going into debt to pay necessary bills increases, so most experts suggest saving enough to cover 3 to 6 months of expenses.
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“Postpone major purchases, such as a new vehicle.” Put the money you would normally spend on a big purchase into an emergency fund instead.
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If you are an older worker, you should consider delaying your retirement. Approximately one-third of retirees express regret for retiring too soon. If you retire just as the economy is entering a recession, you may be at greater risk of experiencing increased expenses and subpar returns on your investments.