Misc.

Worried about economy in the next 2 years, what can I do?

Amazon random95
6d

I'm worried about a crash in the next 2 years. Is there anything I can do? What do people do in preparation of recession?

Not a troll, just want some advice from experienced people :)

My friend who happens to have the same concern is thinking about buying gold to preserve value, I don't know if it would actually make sense ๐Ÿ˜…

I appreciate your advice ๐Ÿ™‚

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  • Microsoft AzureOS
    I usually quit my job beforehand so I won't get fired during a recession.
    6d3
    • Amazon random95
      OP
      I honestly would like to know some suggestions, being a youngling myself ๐Ÿ˜…
      6d
    • PayPal Contrarian
      I think you should save more and spend less. Itโ€™s okay to be fired during a recession, just treat it as if you had quit.
      6d
    • Amazon random95
      OP
      That for sure, currently the majority of my money are in funds. I'm feeling a little insecure and want to save enough to not have to sell them to live if it comes.
      6d
  • Microsoft / Eng
    nonyms

    MicrosoftEng

    PRE
    Freelancer
    nonymsmore
    Stay the course and keep working hard
    6d0
  • Facebook ujsX74
    Last recession I was in my young 20s and got laid off and the thing that sucked the most was having debt and not having cash savings (not just for if you get laid off but also so you have options. I had to take a lot of shitty jobs because I needed the money and I felt stuck). When I bounced back the first thing I did was finish paying off all my debts. Next I saved and invested (but since investments can tank have cash). So save,spend less, try to increase your salary this year if you can to help the mission. Ride it out. You just donโ€™t want to get caught with your pants down.
    6d3
    • Amazon random95
      OP
      That makes a lot of sense. How long did it take for you to bounce back? I do have to pay mortgage right now so should I plan for 2 years? 5 years?
      6d
    • Amazon random95
      OP
      Also, thanks again for sharing your valuable experience!
      6d
    • Facebook ujsX74
      I got laid off in โ€˜09 and it took me about 5 years to recover (as in get back to a financial surplus again). But again thatโ€™s because I had debts and zero saving (dumb and young). Having cash will give you flexibility in a lot of ways. Could also allow you to take advantage of housing and stock โ€œsalesโ€ in a down economy. Now your mortgage: itโ€™s hard to say without knowing the terms but as a rule of thumb aim for those costs to be 25% of my income. If you lost your job could you still pay your mortgage? How much would you need to save to be able to? Think along those lines.
      6d
  • New / HR
    andrewsauc

    NewHR

    BIO
    Tech recruiter @indeed
    andrewsaucmore
    Move back home now, get acclimated, enjoy free food and clean laundry. Itโ€™s really not that bad, parents are just like roommates that pay for everything. Only caveat is slow internet, having to go to church on Sunday (some cases), and being constantly pestered about when youโ€™re going to get married (if {OP=Asian})
    6d2
    • Amazon random95
      OP
      I'm Asian ๐Ÿ˜Š but I am also international so that's sadly not an option. Also in my specific case, it would be more like I take care of my mum :)
      6d
    • Amazon random95
      OP
      My mum is the rare chill type tho, she only pestered me once, and stopped when I said stop ๐Ÿ˜…
      6d
  • Robert Half whteva
    you must do the needful for the next 2 years.
    6d3
    • Amazon random95
      OP
      Not sure that I understand.. what is the needful? ๐Ÿ˜…
      6d
    • Robert Half whteva
      I'm not sure either. Its funny af
      6d
    • Amazon random95
      OP
      ๐Ÿ˜‚๐Ÿ˜‚๐Ÿ˜‚
      6d
  • Amazon Grecu
    Buy bitcoin. Seriously
    6d3
    • Amazon random95
      OP
      Could you explain? ๐Ÿ˜… Can't tell if you are trolling...
      6d
    • Amazon Grecu
      Someone above said gold. Bitcoin is better. Overalll though you just want to have cash on hand. Try to build up as much cash as possible. A small percentage should be in bitcoin or gold. I vote bitcoin
      6d
    • New / Engcato
      Not bitcoin or gold. Both! About 5k of each is great
      6d
  • New DuQvV7x
    Iโ€™m older than many here. Lived through 2 market crashes.

    Adopt a budget that is significantly below your earnings. Beware of hedonic creep. Bonds are not a 4 letter word (even while everyone screams about ETFs & equities), loads of pure cash isnโ€™t great. Gold is isht.

    Recessions are not always bad, consider them an opportunity to buy at discounted prices. Consumer debt is bad, investment debt is good. Always have a liquidity reserve (not cash, see earlier comment about bonds).

    All that, and sunscreen. Always use sunscreen.
    6d2
    • Amazon random95
      OP
      How low is significant below? 50%?
      5d
    • New DuQvV7x
      Figure out what is painful. Then go lower. Much.

      I canโ€™t specify a percentage because you have to (at least) survive and a lot of this is based on your income level & COL.

      But donโ€™t forget, whatever you save in the earlier years multiples a lot more than savings in later years.
      5d
  • Stack cash. 6+ months and live within your actual means. Itโ€™s petty simple. Spend less. Save.
    6d0
  • Amazon KHCr70
    Seriously go talk to an advisor if you are that worried.

    In general just move your funds to less risky investments depending how concerned you are.

    I'd say bonds are the lowest I'd go. I wouldn't ever decide to just hold cash
    6d4
    • Amazon random95
      OP
      Would you mind explain a little bit about the last sentence? I'd appreciate it :) Talking to an advisor is good advice, I'll do that :)
      6d
    • Amazon KHCr70
      In terms of risk: individual stocks, index funds, corporate bonds, government bonds, cash
      (In order of decreasing risk)

      The lower risk the lower the return, but higher safety. Cash has negative return because of inflation, but risk is tiny. Bonds are very low risk but small return after accounting for inflation.

      I wouldn't keep anything in cash except as an emergency fund. (X months worth of living expenses. X is up to you)
      6d
    • Amazon random95
      OP
      Thank you for your patient explanation!
      6d
    • Amazon XIjQ36
      You should put CDs before cash.
      6d
  • Tableau Cheezle
    Cash, Folgers cans, holes in desert.
    6d2
    • Amazon random95
      OP
      That feels a bit extreme, more like war precautions ๐Ÿ˜…
      6d
    • Deloitte / ConsultantFHAs14
      Cook meth in an RV...
      6d
  • RingCentral / Eng
    Duck-Bezos

    RingCentralEng

    PRE
    Yahoo, Oath
    BIO
    One life to live!
    Duck-Bezosmore
    You can enjoy till that time.
    6d1
    • Amazon random95
      OP
      Lol not a bad idea really
      6d
  • This comment was deleted by original commenter.

  • Amazon
    Dkdnejskdn

    Amazon

    BIO
    I love Rocket.
    Dkdnejskdnmore
    Iโ€™m in 80% cash now
    6d2
    • Amazon random95
      OP
      What's the 20%? You are not worried about inflation?
      6d
    • Amazon
      Dkdnejskdn

      Amazon

      BIO
      I love Rocket.
      Dkdnejskdnmore
      Rest in fund. Not worried about inflation. Losing money is even worse
      6d
  • Deloitte / ConsultantFHAs14
    Breathe.
    6d1
    • Amazon random95
      OP
      Breathe and stay calm? ๐Ÿ˜†
      6d
  • Indeed / EngtrumpD
    Just have a good emergency fund in cash (6 months expenses plus 20k for unexpected shit). I'm continuing to ride the market. I'm a family man could be less if you are single.
    6d0
  • New me2you.
    Build tenure at your job.....severance is based on number of years worked.

    Buy put options at highly leveraged small companies.

    Liquid cash reserves to live 6 months without a job.

    Sell stuff you no longer need....consumers are still psrtying.

    Lowerr cost of living areas help reduce burden.

    Tax strategies to offset the capital gains.
    5d0
  • Facebook public2
    Have a ton of cash and be ready to buy everything you can if you think we will get a crash
    6d0
  • Amazon 46+2
    Just keep working and chill. Worrying is not good for health.
    6d0

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