Earlier quoted context omitted.
And in both cases the impending recession was not as imminent as the posters likely expected.
COVID-19 induced a recession all around the globe
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Ask HN: How can I prepare for hard economic times?
151–160 of 341 posts
Re: Ask HN: How can I prepare for hard economic times?
#152I believe it was Tim Bray who had an essay nearly 2 decades ago now where he argued that to have a good career in IT you should 1. Move into government work just prior to periods of economic downturn - making the standards and requirements that will be needed in the future. 2. Move into private sector work during parts of economic upturn where you could take advantage of all the stuff you had a hand in during step 1.…
The reality in today's world (at least for software developers in the US) is that government work pays so much less than private sector work that I don't imagine it pays to go into government work at any point of your career.
Re: Ask HN: How can I prepare for hard economic times?
#153If you think its coming, move your money to hedges. But people have been predicting the next big crash for the last 5 years to no avail, so don’t be surprised if you miss out on major gains.
Really? Everything points to 'economy is fucked for the foreseeable future', people are worrying about possible food and energy shortages, and your take is 'don't forget your FOMO though, stonks still go up'?
Everything has always pointed to the economy being fucked up for the foreseeable future. Many careers have been made on exploiting that fear.
They only thing that really counts in the end is that you, personally, have enough revenue to cover your expenditures. If not, increase the former and decrease the latter until you do. You may need to adjust your expectations too.
Re: Ask HN: How can I prepare for hard economic times?
#154Be wise with the money you have, increase your ability to generate more cash flow, and don't waste more energy than necessary on worrying about things you can't control.
Re: Ask HN: How can I prepare for hard economic times?
#155Earlier quoted context omitted.
> I avoid personal debt like the plague. If that means living in a small house, and driving an old car, then so be it. Going into debt that you can pay off and will make you a profit is good - because making a profit is literally the thing that gets you through bad times. (That's why having savings be 100% cash is riskier than investing - you are 100% guaranteed to not have it go up.) And recent years' zero-to-negati…
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.
Exactly. OP was asking about hard times.
Re: Ask HN: How can I prepare for hard economic times?
#156Diversify 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…
I don't think diversifying one's income is necessarily good advice. I'd rather have one better paying job that allowed me to invest & save than multiple streams of income that split my focus too much. If you have a day job that covers basic expenses, getting a better job might be a better answer than getting a 2nd job.
Re: Ask HN: How can I prepare for hard economic times?
#157I’d suggest that you stop worrying. People have been consistently asking this question since at least 2017, convinced that a recession is just around the corner.
If you’re really truly convinced of an impending recession the best thing you could do would be to take out massive short positions. However, I suspect that you’re not so convinced.
Beyond that I’d suggest just living a life within your means. Calculate your bare cost of living expenses and save up a six month emergency fund. If you’re seriously concerned then go for a 12 month emergency fund.
Re: Ask HN: How can I prepare for hard economic times?
#158As someone who's been poor for a long time, first due to tech burnout and then medical stuff, here's some advice: Budgets are great, if you have steady income. If not, you have to think heuristically rather than algorithmically - how much of my current bank balance has to go to fixed costs like mortgage or rent, food, etc? If the answer is less than 100%, you're already doing better than a lot of people. Learn to do…
This is the best down-to-earth advice I've read on this page!
I'll try to remember this in particular: > My rule is, never buy anything new you can get used, never buy anything used you can get for free, never buy anything period you can make, never make anything you can recycle from stuff you already have.
Re: Ask HN: How can I prepare for hard economic times?
#159Find places that will sell basic raw nutritious ingredients in large quantities ( e.g. rice, beans, nuts). Big savings (if safely stored).
Side story: One time at a co-op I bought a 9-pound bag of cashews (unsalted!). Just for a lark I ate nothing else until it was gone. No downside (but several years before I wanted more.)
Re: Ask HN: How can I prepare for hard economic times?
#160Diversify 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…
I don't think diversifying one's income is necessarily good advice. I'd rather have one better paying job that allowed me to invest & save than multiple streams of income that split my focus too much. If you have a day job that covers basic expenses, getting a better job might be a better answer than getting a 2nd job.
There are second jobs that can be done alongside full time jobs...
I'm in a situation getting similar to this Ask HN... I have a family that depends on my income (plus, it's very stable/secure, enjoyable, but unfortunately under market pay). If I find a better job, and things don't work out, we'd have virtually no household income... However, I was able to find a second job (which required honing one additional skill) to pull in $3000/year working a few nights a year... Which helps pay for unexpected expenses.