How are you preparing for a possible recession?

Apr 2 16 Comments

I am fairly new to the adult life. I also did not grow up in the US.

For the folks who have been through a recession before, what are some tips you have with regards to spending, saving, investing, managing money stress, etc…?

YOE: ~2
TC: 130k

#finance #recession #personalfinance #investments

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  • Oracle
    not_LarryE

    Go to company page Oracle

    not_LarryE
    Save cash. Lot of it. One year living expenses.
    Apr 2 9
    • Oracle
      not_LarryE

      Go to company page Oracle

      not_LarryE
      Op I watched the video you linked. Don’t trust that guy. In the beginning he uses data from 1950 onwards to make a case. Later on at 7:30 he uses data from 1869 onwards to make the case you made. That’s because the data pre-1950 doesn’t suit his theory. Can’t trust someone who uses different time periods as it suits him.

      I don’t know during which recessions stock market went up. He doesn’t say that. If I had to guess it’s pre-1950. That’s why he counting data from 1869 onwards in that case.

      What is different in general between pre-1950 and post-1950? World is on a dollar standard since 1940s. So stocks and gdp are all tied together.

      Just to be clear I’m not suggesting you sell your stocks to raise cash. Always have enough cash to live 6-12 months. Then you don’t have to plan anything special for a recession.
      Apr 2
    • Apple
      ijyA68

      Go to company page Apple

      ijyA68
      The only thing you can do is diversify. Inflation is raging out of control, and I wouldn’t bet on central banks raising interest rates into a recession, which means cash will lose value even faster.
      Apr 2
  • Procore
    AImC13

    Go to company page Procore

    AImC13
    Recession does not mean 100% folks loose their jobs. May be the unemployment goes to 8%. Keep some savings and don't think too much about it.
    Apr 2 0
  • Box
    pozm

    Go to company page Box

    pozm
    Have an emergency fund. Amount is up to you, but I do what we would need for 1 year factoring in unemployment and of course cutting back to essentials.

    Some might say it's a waste not being invested, but the piece of mind it provides is very worthwhile to me.

    I was not so fortunate during 2008 and it really sucked.
    Apr 2 0
  • If you are on visa. Keep consultancies in your speed dial. Hey GC as soon as possible.
    Apr 2 2
  • Yelp
    cachegirl

    Go to company page Yelp

    cachegirl
    Diversification of income and assets
    Apr 2 0