I don’t know when or if it will happen, but I want to be prepared. My knowledge of economics and personal finance is limited so I’m using this thread to learn. In the meantime I’m reading Total Money Makeover and The Simple Path to Wealth to learn. My TC is 100k in the Bay Area (yeah yeah I know) and I have a 3 month emergency fund. I max out my 401k and don’t have any investments. I’m working on building up the emergency fund to at least 6 months. Unfortunately I do have credit card debt and my credit score is average, and right now I don’t know whether I should concentrate on paying off debt, increase my savings, or split it 50/50 and do both slowly. I don’t know how stable my company is but I’ve started to leetcode just to be prepared for anything. Not sure how difficult it’ll be to find a SWE job in the Bay during a recession if I do get let go.
If you don’t have masters prep for one (or mba etc) then worst case you end the recession with a higher degree
I only have a BS in CS (if it matters, from a Top 30 university). I haven’t thought about getting a graduate degree.
Short the market
Lol, what if recession never happenes, he will have his own mini recession then
It would be him/her alone so it would be a depression
Buy TSLA
Buy bitcoin
When recession came, go for a high degree or retire if you have enough deposit or start your own for next boom. Finding another job will be hard since all companies are shrinking.
Just the Bay Area or in general? I’m open to relocating if it comes down to it.
Until you pay off your cc debt, you should prob only be contributing to 401k up to company match. That and Leetcode
You do nothing. Don't over extend yourself and buy more during sales. That's it
Find a company that will let you work remotely. Most likely not going to be a big-N company though. That way when the pay cuts come, you're better prepared. Oh and do not buy a home right now in the Bay Area unless you are willing to live here forever. This is a house of cards.
Get a credit card with 0 interest for a year and transfer your current balance to that. Save for emergency fund that's more important. Then slowly pay the 0 interest card within a year. Do only company match percentage for 401k till you pay off your debt.
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Always always always pay down bad debt like credit cards first. The interest rates are brutal and higher than any return if you invested that amount instead.
So I should focus on paying off debt as opposed to building a bigger emergency fund?
Yes absolutely