Weathering the Economic Downturn

[bradsteen]

Hey folks, I'm hearing rumblings of an economic downturn that might hit in the next 6 months. Commercial real estate is expected to drop like an anvil with as much as a 40% default rate, which could in turn cause a number of banks to fail. Any tips and tricks on how you will weather the storm?

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[Longwalkhome]

 

[P7M13]

Here on the forum, surviving the crash.....

 

[nammac]

Rice and beans, powder and lead…

 

[CamoDeafie]

economic downturn that might hit in the next 6 months.

You mean it hasn't downturned 2-3 years ago with the whole COVID thing?

 

[Longwalkhome]

It's a recession when your neighbor loses his job.

It's a depression when you lose yours.

 

[slimmer13]

Hey folks, I'm hearing rumblings of an economic downturn that might hit in the next 6 months. Commercial real estate is expected to drop like an anvil with as much as a 40% default rate, which could in turn cause a number of banks to fail. Any tips and tricks on how you will weather the storm?

Eliminate debt
Have a backup income source
Save money
Have tangible assets

 

[Nosferatu]

Lighting everything on fire, collecting the insurance and moving to Belize.

 

[tkdguy]

Maybe buy a dip of GDX gold etf and or discuss with your broker? GDX will fly with lower interest rates and has done very well this year in anticipation. Good luck

 

[Soli]

Eliminate debt
Have a backup income source
Save money
Have tangible assets

Only one thing to add:
Build relationships with good people.

Doesn't have to a lot. Just commit to a few good people willing to reciprocate. Keep your word. Don't leave.

Bonus: even if the S never HTF, it'll make your life better.

 

[bradsteen]

Here on the forum, surviving the crash.....

Yeah, guess this one is redundant. My bad. Mods can close it if they want.

 

[TTSX]

 

[Pahonix]

An addition to this

Lower monthly bills
- pay off cell phone hardware payments early
- Cut cable/entertainment costs
- prepay bills (pay insurance and other bills a year in advance).

 

[Stomper]

Eliminate debt
Have a backup income source
Save money
Have tangible assets

An addition to this

Lower monthly bills
- pay off cell phone hardware payments early
- Cut cable/entertainment costs
- prepay bills (pay insurance and other bills a year in advance).

Done did all of this…. it's quite liberating, mentally, physically, and spiritually.


Added bonus, you can't be intimidated with BS threats of, "comply with this mandate or lose your job" when you're debt free and have alternative resources…. I'm like, "OK, fine" and never blinked (and never did lose my job…. ).

 

[arakboss]

Buy lower, sell when we recover.

 

[Longwalkhome]

Buy lower, sell when we recover.

That used to work in our normal system where about every 12 years the ptb would crash the economy. This next crash is different, it's a reset.

 

[solv3nt]

Maintain at least a year of cash or cash equivalents if it's likely that you will lose your job. Don't carry debt (other than your house).

With a mortgage, pay a 13th payment each year, and you'll cut off about five years on a 30 year note.

Don't have debt.

 

[solv3nt]

If it floats, flies or bubblegums, it's cheaper to rent.

 

[Member 53328]

Way ahead of this.

Only debt I have is my mortgage.

My occupation is set.

My savings continues to grow.

Living within your means pays off. Not only financially but with less stress as well.

I'm waiting for America to crumble.

 

[Longwalkhome]

I have cut down on a number of things I don't need. Some time ago I dropped TV cable and saved $120 a month.

I only have a flip phone to use for emergencies, I pay $34 a month for it.

I use a tablet for the net and share wifi to keep cost down.

I make my own dog food and freeze it, dog is doing better than ever.

Got through an entire month without using my Citi card.