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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?

#201

Post by nradov »

nivenkos wrote: post #182
davedx wrote: post #139

Earlier quoted context omitted.

Your advice might be okay for good times (investing, buying land, houses). But in hard economic times, the global economy will be doing badly and therefore most investments will too, even housing (see 2008). Going into debt that you then invest is doubly risky: you have debt, plus you have a risky investment. Saving cash is actually indeed the best way to prepare for hard times.

Inflation will wipe out that cash though. Honestly, it's hard to give advice since it's so specific to the region and job market, etc. Like many US engineers can easily afford to buy a house outright with $200k+ salaries, that isn't possible as often in Europe or Asia for example. But basically do what you can to get fixed costs that you know you can afford and stability - i.e. a fixed rate mortgage, fixed rate utili…

There are very few US engineers who can afford to buy a house outright. The ones making $200K+ salaries are mostly in HCOL areas where houses are very expensive. And the ones who can afford to buy outright are usually doing so based on equity gains, not salaries.

Re: Ask HN: How can I prepare for hard economic times?

#202

Post by leavenotracks »

nivenkos wrote: post #184
dmje wrote: post #74

Diversify in as many areas as you can. In income terms, diversify away from a single source by learning new skills, training up in areas you're a bit rusty in, learning totally new ones. In savings or investments: diversify where you put them, spread them around so you're not dependent on any one scenario. In eating: eat more interesting and cheaper things. Become vegetarian, if you aren't already. In exercise: drop…

> In exercise: drop any gym memberships, use things like body weight to train. Run one day, do yoga the next. This is a bit like the avocado toast nonsense though - a gym membership costs about $50 a month which is nothing compared to the near $2000 mortgage payments.

Why the arbitrary comparison with (likely) the costliest outlay? I think it is sound to suggest eliminating gym membership, particularly if under-used. Moreover, it's not optional to pay your mortgage if you have one, gym membership is.

Re: Ask HN: How can I prepare for hard economic times?

#203

Post by jamil7 »

CPLX wrote: post #130

Jesus these answers are hilarious. Assuming you’re in the U.S. or similar you don’t need a farm, a shotgun, and a Honda full of silver ingots. Diversify your savings, avoid consumer debt, and be wary of new monthly payments. Consider changing to more stable job if appropriate. That should do it.

The question seems to have been interpreted as preparing for a mad max like scenario for some people.

Re: Ask HN: How can I prepare for hard economic times?

#204

Post by jefc1111 »

dmje wrote: post #74

Diversify in as many areas as you can. In income terms, diversify away from a single source by learning new skills, training up in areas you're a bit rusty in, learning totally new ones. In savings or investments: diversify where you put them, spread them around so you're not dependent on any one scenario. In eating: eat more interesting and cheaper things. Become vegetarian, if you aren't already. In exercise: drop…

"spend all the time you possibly can with your family. Make them your focus, not your income and "future". Be in the now as much as you possibly can"

Retrospect is 20/20... (I'm making the assumption you have had young kids and are speaking from experience). I have spent loads of time with my kids in the last few years (more than many of my peers have) and at times think it has been to mine and (by association) their detriment. "all the time you possibly can" is just too emphatic-an aspiration to be realistic in the messy context of real life.

Regrets on some scale are inevitable so learning to accept them is important.

Balance is all.

Re: Ask HN: How can I prepare for hard economic times?

#205

Post by nradov »

bsenftner wrote: post #166
ChrisMarshallNY wrote: post #87

I've always found that "living at my means" has paid dividends. To many folks, 'round these parts, they'd consider it "living below my means," but that's mostly because they "live beyond their means." I avoid personal debt like the plague. If that means living in a small house, and driving an old car, then so be it. I've also found that learning to deliver software, as opposed to just "writing" software, has made me…

I think the key take away here is learning to deliver , as that is what companies actually, finally care about - everyone else is nice, but without the final person that ties the bow to get the product out the door, you're fluff. And the advice to treat dept like a disease is worth following. There is no better feeling than telling the car sales failure you want $5K off because you're paying in cash, with a spreadshe…

Car dealers don't give cash discounts anymore. In fact it's often the opposite because dealers get volume incentives for financing more customers through the manufacturer's captive lender. And interest rates now are often still lower than the inflation rate, so if you have good credit you're actually coming out ahead by borrowing.

Re: Ask HN: How can I prepare for hard economic times?

#206

Post by CPLX »

jamil7 wrote: post #203
CPLX wrote: post #130

Jesus these answers are hilarious. Assuming you’re in the U.S. or similar you don’t need a farm, a shotgun, and a Honda full of silver ingots. Diversify your savings, avoid consumer debt, and be wary of new monthly payments. Consider changing to more stable job if appropriate. That should do it.

The question seems to have been interpreted as preparing for a mad max like scenario for some people.

They built a house of straw. The thundering machines sputtered and stopped. Their leaders talked and talked and talked. But nothing could stem the avalanche. Their world crumbled. The cities exploded. A whirlwind of looting, a firestorm of fear. Men began to feed on men.

On the roads it was a white line nightmare. Only those mobile enough to scavenge, brutal enough to pillage would survive. The gangs took over the highways, ready to wage war for a tank of juice. And in this maelstrom of decay, ordinary men were battered and smashed.

Except for one regular HN reader armed with an AK-47, a farm, and a bag full of potatoes.

Re: Ask HN: How can I prepare for hard economic times?

#209

Post by ianai »

ntSean wrote: post #189
dmje wrote: post #131

Earlier quoted context omitted.

32 year vegetarian. Never had to take a supplement.

7 year vegetarian. Recently found out I’m low on iron. Probably because I don’t eat fortified cereals. As a male, I’ve been told not to worry about my Iron intake- but that’s bad advice. Best is not to generalise and instead get a blood test to check vitamin levels. Talk to your GP.

Agree. The people who successfully transition to a significant diet change like vegan/vegetarian probably already see their primary care physicians. Hence they’re more likely to know they’re deficient. A major diet change would be journaling and testing glucose closely to see what spikes and doesn’t. This is more of a 80/90 thing though and not for everyone.

Personally, I avoid fortified foods because I supplement with higher quality forms elsewhere. Neon yellow urine is not right.

Re: Ask HN: How can I prepare for hard economic times?

#210

Post by throwaway2037 »

nivenkos wrote: post #184
dmje wrote: post #74

Diversify in as many areas as you can. In income terms, diversify away from a single source by learning new skills, training up in areas you're a bit rusty in, learning totally new ones. In savings or investments: diversify where you put them, spread them around so you're not dependent on any one scenario. In eating: eat more interesting and cheaper things. Become vegetarian, if you aren't already. In exercise: drop…

> In exercise: drop any gym memberships, use things like body weight to train. Run one day, do yoga the next. This is a bit like the avocado toast nonsense though - a gym membership costs about $50 a month which is nothing compared to the near $2000 mortgage payments.

I agree with your "avocado toast" assessment. Plus, for many people, the social aspect of a gym -- even if they talk to no one -- is motivating. Also, the equipment will normally be better and more diverse than you own at home.
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