Weathering the Economic Downturn

[Jay Walk]

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

Our mortgage balance is down to $1,544.40
We have been overpaying on it for a few years.
Just letting the rest draft out now.

 

[Longwalkhome]

Just hood rats. Doing hood rat sh!t.

And as the economy crashes the rat population grows.

 

[Member 53328]

And as the economy crashes the rat population grows.

And the true pest control/exterminators will come out and do work.

 

[CamoDeafie]

And the true pest control/exterminators will come out and do work.

Real question; will they be Americans working for America, Americans working for the UN/China, Chinese?

 

[Member 53328]

Real question; will they be Americans working for America, Americans working for the UN/China, Chinese?

There is a large population in America who spent a decent chunk of their lives fighting for a country they loved. When they are forced to put those skills back to work here stateside and come out of the "darkness" you will have your answer.

 

[CamoDeafie]

There is a large population in America who spent a decent chunk of their lives fighting for a country they loved. When they are forced to put those skills back to work here stateside and come out of the "darkness" you will have your answer.

And I'll be making gear for some the only question, how good are the funds, and what flavor crayons are preferred?

 

[gmerkt]

A length of rope and a sturdy rafter?

 

[CamoDeafie]

A length of rope and a sturdy rafter?

Multiple rafters and lengths probably be best.

 

[Longwalkhome]

Watched Netflix last night and the movie was about the hunting of Bonnie and Clyde during the great depression. A grim reminder of the bloodshed in those days. Today's society is armed much better than the criminals of those days.

 

[CamoDeafie]

Today's society is armed much better than the criminals of those days.

Better armed but softer and less willing to fight/shoot back

 

[Longwalkhome]

Better armed but softer and less willing to fight/shoot back

I am old so I have heard many stories about the great depression from family that lived through it. It took a world war to get everyone back to work and millions died from the war. More millions died with countries forcing communism on people.

A big depression makes for world changes.

 

[Jbsheepdog]

Sounds great, but thinking it through… that 2% "cash back" is funded by millions of (for instance) single working moms in debt up to their arses struggling to keep their kids fed and housed paying exorbitant interest rates because they had to max out their credit cards which literally enslaves them for the rest of their remaining lives with no hope of ever paying it off.


I'll pass.

Agreed. Don't be part of the system

 

[nammac]

A length of rope and a sturdy rafter?

Just need a good healthy century oak…. That oughta do the trick…

 

[Provincial]

Believe it or not, if you don't carry a balance on your credit card(s), it has a negative effect on your credit rating. Paying it off before the deadline is considered not carrying a balance.

The credit rating agencies work closely with the lenders. Neither group likes people to be debt-free. On the other hand, the more debt you have, and make the payments on it without fail, the better your credit rating.

 

[Catfishmoon]

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

I second that information.
Get used to living on a certain level of income. When your income increases, continue to live on the smaller amount and put the extra money in the bank...
Avoid debt, the only thing many people should use credit for is housing, there are exceptions.
I have plenty of coworkers who make payments on $60 - 80 thousand pickups that get lousy fuel mileage, probably not a great idea from a financial perspective.

 

[Member 53328]

Believe it or not, if you don't carry a balance on your credit card(s), it has a negative effect on your credit rating. Paying it off before the deadline is considered not carrying a balance.

The credit rating agencies work closely with the lenders. Neither group likes people to be debt-free. On the other hand, the more debt you have, and make the payments on it without fail, the better your credit rating.

F-ck credit.

With that being said I haven't had a balance on a credit card in over a year. It's paid off at the end of each month. I'm not a fan of paying interest AKA wiping my own a$$ with my hard earned money and flushing it down the toilet.

My credit score hasn't dropped at all. I'm still sitting in the 800s.

 

[Jay Walk]

A high credit score only proves that you are really good at borrowing money.

 

[arakboss]

Being debt free isn't necessarily a sign of optimal financial shape. Lot's of homeless people are debt free but I wouldn't want to be in their shoes. If you work to the threshold where taxes are due, you are not debt free.

 

[Longwalkhome]

Guys don't realize how the system works against them, your credit score affects your payments in a lot of ways.

is credit score used to set insurance payments - Bing

Intelligent search from Bing makes it easier to quickly find what you’re looking for and rewards you.

www.bing.com

 

[American123]

The credit card thing is just silly.

If there isn't a cash discount that is more than 2%, of course I am going to swipe and get that 2% back.

People who carry balances on credit cards are generally just living beyond there means and will likely lead a life of poverty forever as a result. Not everyone, but most purchases are not "necessities" and paying that interest rate is just foolish.

As far as economic downturn stuff - reducing costs on what you already do as much as possible, having ample savings or credit to be out of work for a while and be ok, being willing/able to live far more frugally if necessary, having marketable skills or sources of income. I'm fortunate that my line or work is generally always happening and I could find a position lots of places if necessary.

Having money is just like having options, and that's really what people want/need during tough times.

When it was decreed my profession needed the covid shot, I had a years worth of living expenses in the bank. I confidently told them I would never be getting it and I'd find new employment if necessary. Two years later I am still in my profession, without the covid shot. Apparently they needed me more than pushing that issue was worth to them, but because of my savings I was in a position of confidence. Many other people who were living paycheck to paycheck had a much more difficult situation.