Poll: Finances in a recession

[TDH]

I picked up a 365X

 

[Member 15244]

Might as well live as normal. If everything collapses it will be the same for millions of others. We are strong in numbers. It's all just a piece of paper in the end no value if it collapses.

 

[Provincial]

Recessions are opportunities that are building. Slight adjustments can really help how you manage your finances in a recession.

A year ago when interest rates were sub zero,
it was hard to invest in cash like investments however you need a certain amount of liquidity especially when retired.

Now with rates rising, holding cash or other highly liquid investments makes sense with a rate of return.

Given the volatility of the market, your timeline for retirement colors your decisions the most.
Already retired has a different strategy than retiring in 5,10, 20 years etc.

View assets in terms of value, liquidity, leverage, and dividends.
Holding an asset is one thing, building an investment strategy around an asset takes more care.
Precious metals and collectibles are rarely good primary assets however are certainly worth owning.
Quality equities that pay a dividend can ride through the trough of Recession/inflation and setup for gains as the market turns.

Sensible real estate investments can also ride out recession and inflation periods by providing a source of income, collateral, equity etc.
Everyone's situation differs of course. Owning an expensive property with a large loan so you can rent it out may not work out for everyone.

However owning a $200,000 house might make more sense than owning a $200,000 sprinter conversion.

Where I cut back is things that require loans. No New phones, New cars, etc.
Cook meals vs eating out.
Frozen veggies vs fresh (Herbs are different I try to grow those or buy plants)
Costco $4.99 Roast chicken
0% financing where available makes a lot of sense for home improvement.

This. We have NO debt, and pay off credit card bill each month.

We have positioned ourselves to take advantage of a depressed real estate market, which is coming soon.

Dividend stocks, income properties, cash.

Our kids and grandkids rode out the Great Recession watching our example. They now live frugally and invest carefully.

My great-grandparents, grandparents, and parents all lived through the Great Depression. So did my wife's. They taught us well!

My wife sometimes complains when I fix something instead of buying new. Then a big ticket item fails, and when I fix it on the cheap, she appreciates it. Part of the reason I can do this is choice of product. I try to not get disposable items.

 

[arakboss]

Stuff will be the new money when the fiat system collapses. Figuring out which stuff will be most valuable is the trick.

Enjoy your money while it's worth something.