If you own your own property, get a wood burning stove. The ability to heat your dwelling and cook food if the electricity goes out or you can't afford fuel is priceless.
Ask HN: How can I prepare for hard economic times?
51–60 of 341 posts
Re: Ask HN: How can I prepare for hard economic times?
#52Depends on where you are in the world. In the UK, there's this handy flowchart https://ukpersonal.finance/flowchart/ The essence is to have a budget. Understand exactly how much you spend and where you spend it. Once that's done, you can work out where (if anywhere) you can save money. It might be as simple as cutting out Netflix, or as complicated as refinancing all your debt.
Hi, that's a nice flow chart. Just one thing that I don't understand: Step 1. Make minimum payments on all debts. What does it mean? Isn't it better to pay all debts as fast as possible?
You should re-gander at the flow chart. I looked and noticed a "is a debt high rate? pay it off first" logic flow there.
You can't just "pay everything off", and so the above chart prioritizes things which have highest interest, as pay down aggressively first.
Re: Ask HN: How can I prepare for hard economic times?
#53Learn a useful skill. Fixing mechanical equipment, farming, building bunkers, preserving food without refrigeration. Teach your kids those things, and how to hide in the forest.
Re: Ask HN: How can I prepare for hard economic times?
#54in theory isn't going into debt before the big crunch the best move with inflation?
If the crash is inflationary, then yes. If deflationary, then no. Will the future be more inflationary than the market currently expects?
Re: Ask HN: How can I prepare for hard economic times?
#55Depends on where you are in the world. In the UK, there's this handy flowchart https://ukpersonal.finance/flowchart/ The essence is to have a budget. Understand exactly how much you spend and where you spend it. Once that's done, you can work out where (if anywhere) you can save money. It might be as simple as cutting out Netflix, or as complicated as refinancing all your debt.
Hi, that's a nice flow chart. Just one thing that I don't understand: Step 1. Make minimum payments on all debts. What does it mean? Isn't it better to pay all debts as fast as possible?
There are other steps involving overpaying debt, they just happen at different stages. They're in step 1, 4 and 8.
Re: Ask HN: How can I prepare for hard economic times?
#56Leave the city.
I am thinking of establishing secondary rural location and investing in full off grid capability
If I could afford that I'd love to do so.
I'm aware of the work it takes to live off the land. I don't have the skill or fitness to do so but still dream of trying that one day.
Re: Ask HN: How can I prepare for hard economic times?
#57Work for a company that is protected and you will be okay. Food, soap, and other basic boring stuff will be in demand. Luxuries not as much, so games might be bad, or as cheap entertainment they might do good as people buy the games that will keep them all year to avoid the expensive entertainment they did instead. Really it is a guess as to what will do well. Most people have a job in bad times. The real problem is…
Paying off debt is usually good financial advice, but it is arguably the wrong thing to do if you expect higher and higher inflation (which you mentioned is your expectation).
If you expect inflation to keep increasing, then one of the financially smart things to do would be to take as much debt as possible and purchase hard assets with the debt (such as land or commodities).
For me personally, I wouldn't follow this advise because I don't like the psychological burden of being indebted. I just wanted to highlight how higher inflation expectations disrupts traditional saving advice. It nullifies the idea of hoarding lots of cash.
Re: Ask HN: How can I prepare for hard economic times?
#58Buy house with few dozens of acres of land. Buy tools to cultivate the land. Buy few sacks of potatoes, learn how to grow them. Buy few sacks of salt, ensure it's stored safely. Learn how to weld with gas, buy enough gas to be stocked. Buy medicines. Buy guns. Buy bullets and vodkas. There are many thing to do to survive in harsh times. But first thing you need to ensure: your own home where you can live; defenses against strangers; preferably good community, you can't survive alone; ability to grow enough food; something that could be used as a currency: salt, bullets, vodka.
Also be ready to evacuate from the city when time will come. Move early, roads will be stuck very quickly. Keep your car tanks full, keep few cans of gasoline as well.
Re: Ask HN: How can I prepare for hard economic times?
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Re: Ask HN: How can I prepare for hard economic times?
#60Work for a company that is protected and you will be okay. Food, soap, and other basic boring stuff will be in demand. Luxuries not as much, so games might be bad, or as cheap entertainment they might do good as people buy the games that will keep them all year to avoid the expensive entertainment they did instead. Really it is a guess as to what will do well. Most people have a job in bad times. The real problem is…
Absolutely agree, the crash is coming since ten years.. Any moment.
I dont believe we will see a crash.
Stocks might go sideways for quit a while.
But companies will keep chugging along and employ people.
Companies which will do well, are companies, telling people the world will end...