If you're asking how to prepare for a recession, the recession has already begun. Changing your behavior now is just going to lock in your losses. Stay the course and don't be distracted by changes around you.
Ask HN: How are you preparing for the recession?
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Re: Ask HN: How are you preparing for the recession?
#12It’s already here. However recessions have been getting shorter and shorter every time they occur.
Which is a negative thing because forest fires are essential for the quality of the soil so to speak.
Re: Ask HN: How are you preparing for the recession?
#131a. Don't Go out on a limb, now is not the time to scatch that itch. 1b. Do batten down the hatches in any and every way you can.
2. I was a self-employed freelance consultant. I survived by being good-ish at what I did. What got me through it? The alternatives.
3a. Boom-and-Bust are cyclic. 3b. The rich get richer each time the music stops. 3c. That which is old becomes new again. 3d. Always know how to fix something because when times are bad the rich will either want something fixed or want some new shiny thing installed. Times are seldom tight for the rich (or rather they tend to be the last to suffer before 'something is done about it')
Re: Ask HN: How are you preparing for the recession?
#14- aggressively trim unnecessary expenses like media subscriptions, the "extra coffee", immaterial luxury goods. you don't have to live like a monk, but all of us could easily trim our fun spending by 20-50%.
- have 6-12 months of emergency cash that can sustain you if your main source of income fails. something will always happen, whether it's an appliance or car that breaks down, or an unexpected medical expense. slush funds are good.
- 'if it ain't broke, don't fix it'. make stuff last the extra mile, if you can. stretching electronics and clothes .... fixing electronics (when realistic) instead of buying the new shiny thing ...
- don't sell stocks. if anything; if you're fortunate enough to truly have extra cash, buy that stock at rock-bottom prices you've been eyeballing for a while. buy low, sell high.
- if you have dependents, be extra conservative with your cash. you will need each other.
- this too, shall pass.
Re: Ask HN: How are you preparing for the recession?
#15I’d like some advice please.
I am currently freelancing with one major client. I only work 3 days a week which is great and I make a good amount of money. Client is a small company, seems financially secure, but eh could also go belly up I suppose. They offered me a fixed contract but it would be for less money than I now make freelancing, +4 days a week. Should I take less cash and less freedom for the security that a fixed contract would bring (and eventual governmental support of the company goes belly up)?
Re: Ask HN: How are you preparing for the recession?
#16- aggressively trim unnecessary expenses like media subscriptions, the "extra coffee", immaterial luxury goods. you don't have to live like a monk, but all of us could easily trim our fun spending by 20-50%. - have 6-12 months of emergency cash that can sustain you if your main source of income fails. something will always happen, whether it's an appliance or car that breaks down, or an unexpected medical expense. sl…
I agree except for the part about "buy low, sell high."
Timing the market is a fool's errand, and it gets no easier during a time of recession.
Re: Ask HN: How are you preparing for the recession?
#17- aggressively trim unnecessary expenses like media subscriptions, the "extra coffee", immaterial luxury goods. you don't have to live like a monk, but all of us could easily trim our fun spending by 20-50%. - have 6-12 months of emergency cash that can sustain you if your main source of income fails. something will always happen, whether it's an appliance or car that breaks down, or an unexpected medical expense. sl…
I agree except for the part about "buy low, sell high." Timing the market is a fool's errand, and it gets no easier during a time of recession.
I am shocked. No one has yet said 'Buy Crypto' :)
Re: Ask HN: How are you preparing for the recession?
#18 - Bought real estate.
- Got a remote-first job outside of crazily inflated tech money while still asking for tech money because the market for developer was crazy hot a few months ago.
The previous one wasn't too bad personally. I can't say I ever had problems finding a job, no matter the market. Network aggressively, sell yourself well.
Invest in people skills if you suck at it and you won't have problems landing a job, even during the recession.
Re: Ask HN: How are you preparing for the recession?
#19Everybody is saying recession all the time, so I doubt it will be that severe. Isn't a recession more like it comes out of nowhere and people get hit hard quickly, thus the economic inefficiencies caused are a drag on the total economy? I don't see what's unhealthy about our economy besides the fact that super cheap money may be gone for awhile. Alright so companies like PLTR go down, whatever.
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Re: Ask HN: How are you preparing for the recession?
#20Start a new business. Recessions are great for that especially if you already have funding or if you can bootstrap. Did it in 2001 and 2008 as well; great stuff. I would say though; be careful with with spending cash. Depending on your situation, it might be harder to come by. Many people I know who got fired in 2001/2008 and who had too high mortgages, debt and little cash fell on hard times for a few years.
Could you elaborate on why it's a good idea to start a business in a recession?