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Ask HN: How are you preparing for the recession?

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Re: Ask HN: How are you preparing for the recession?

#21

Post by jghn »

kradeelav wrote: post #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. sl…

I used to keep a 12 month e-fund in cash. Then it became 6. Not too long I moved it to be almost 0. Which yes, that sounds very wrong.

But the thing is, if we get to a place where my investment accounts & credit card can't cover me for several months we as a society have much bigger problems. I'd prefer to not have to eat into those, and yes if the markets crash enough I'd have fewer months buffer in there. But if the shit hits the fan enough that I can't live off of it for a while I don't believe cash will help out a whole lot either.

Granted over the last couple of months the net value of that money would have dropped less if it were cash than in my investment accounts. But that's another matter altogether.

Re: Ask HN: How are you preparing for the recession?

#22

Post by hitovst »

Reduce overhead as much as possible. Reduce debt (least safe first) as much as possible. Invest in necessities that you and your family can consume/use.

People have all kinds of theories about what will be best currency, and stockpile stuff they can't consume/use. Cover your basis first.

Invest in any skill that will enable you to produce something.

Re: Ask HN: How are you preparing for the recession?

#24

Post by nullbytesmatter »

noobrunner wrote: post #17
savanaly wrote: post #16

Earlier quoted context omitted.

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' :)

Diamonds hands!

Re: Ask HN: How are you preparing for the recession?

#25

Post by AznHisoka »

noobrunner wrote: post #3
AznHisoka wrote: post #2

I quit my job during the last recession to do a startup (which ultimately failed). A lot of people thought I was crazy, but in hindsight it was the right move, as I learned a lot of things that I was able to parlay into a 2nd startup.

Wow, that's a ballsy move. Did the startup fail because of the recession time/lack of funding?

It failed because I didn’t execute well and chose the wrong market.

Re: Ask HN: How are you preparing for the recession?

#26

Post by cwmoore »

sc00ty wrote: post #20
tluyben2 wrote: post #7

Start 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?

Because investing in everything else is suboptimal and the new business can be ready to make money when the market inevitably returns to strength.

Re: Ask HN: How are you preparing for the recession?

#27

Post by slyall »

sc00ty wrote: post #20
tluyben2 wrote: post #7

Start 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?

Reduced competition. Fewer other businesses are trying to start up at the same time and existing companies have less money to spend to compete against you.

Suppliers will also be eager for new business, same with landlords if you have a physical store. Also easier to hire.

Re: Ask HN: How are you preparing for the recession?

#28

Post by rvz »

my69thaccount wrote: post #11

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.

Exactly. We were already in a recession months ago, since November.

Re: Ask HN: How are you preparing for the recession?

#29

Post by mackatsol »

Clampower wrote: post #15

I’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…

I'd say no.. go fill the other days in the week with more clients. Keep the flexibility to say no. My 2 cents. 20+ years of consulting experience working mostly with single clients or small business.

Re: Ask HN: How are you preparing for the recession?

#30

Post by ankaAr »

Don't save cash, invest. Inflation will eat your money if you save the cash under your bed.

Open new business, people will stop spending on unnecessary things, but think what every people needs every day.

Labor will be cheaper, think about that.

38 years living in Argentina, you move fast or you die.

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