How to prepare for a recession tomorrow?
Posted by MountainousKiwi@reddit | preppers | View on Reddit | 33 comments
Hi! Me again.
Separate and aside from any fears of what will happen next in the US, as someone who was less than aware of the world in 2008 and what happened to everyone, how does one prepare for a recession? Let's say the stock market crashes tomorrow.
I'm in uni for one more year (finishing next fall), and I have housing preparations already. I've already started gathering food like y'all said in the last post. My full time job search is starting, getting somethings figured out. I have a part time job but am looking for something more permanent.
More food? Less food? Sell all extra stuff to get more money? Withdrawal all bank accounts? I'm new to this, and you all were really helpful on the last post. Thanks!!!
zachattack3500@reddit
Not a financial expert, but recessions his people with debt and mortgages the hardest. If you don’t have a mortgage that could be foreclosed on, you’re already in decent shape.
If you mean bank accounts and not investment accounts, then you’re probably fine to keep them. The FDIC insures bank accounts up to $250,000, so your money is safe there, assuming you have less than that in your account.
MountainousKiwi@reddit (OP)
It’s more investments that I’m concerned about. I have a budding portfolio that doesn’t have much but it’s still something
-Joseeey-@reddit
Investments will take a big hit, but in the grand scheme of things, it’s just a small blip.
Look at the S&P500 over its lifetime. It will, over time, always go up.
Adubue@reddit
You're young enough where you don't have to worry a out a recession with regard to your investments, so long as you aren't intending on immediately using your investments.
All of that being said, a recession isn't very likely anytime soon.
MountainousKiwi@reddit (OP)
Yeah I’m a saver lol, so this is encouraging!
i_do_technical_stuff@reddit
Assuming DOGE (the department, not the coin) or executive branch agenda to alleviate regulations doesn't disrupt the premise of FDIC insurance...
Adubue@reddit
(And if you happen to have more than $250k in an account, please diversity 😂)
Greenmantle22@reddit
Is a recession a “doomsday event” worth prepping to survive? We have them every so often, and we weather them. Many people aren’t significantly impacted by them at all.
But as others have said, you can weather one better with healthy finances and good choices.
DeafHeretic@reddit
Minimize debt & expenditures, maximize savings
Relative_Ad_750@reddit
Do everything you possibly can to increase your future income and employment options while keeping your body physically healthy and fit.
CollectiveJohn@reddit
Save 6 months of your standard budget and buy some extra shelf stable food
Adubue@reddit
My recommendation would be to not take any one area to an extreme.
Save money, stay physically fit, focus on your grades in school, network with your professors and potential employers, and while you're doing these thing you can also focus on putting some extra food and water aside.
I may have responded to your previous post, but before you can prepare for (XYZ scenario), you have to be prepared for tomorrow and next week.
If the market crashes and you have a few months of cash in an emergency fund, a few weeks of food, and a place to stay, you're solid.
As someone who interviews college students frequently, I would strongly urge you to get an internship or job, get involved in clubs on campus, or find unique ways to make yourself a more appealing candidate. If your college offers electives that interest you, take them now while you can.
Finally, I just want to address your comment on withdrawing all bank accounts: No, no, no. Your bank is FDIC insured and a bank is a much safer spot for your cash than physically somewhere in your home. Once you get a few months of an emergency fund saved up, then you can think about investing in things where you can grow your money or physical things to better prepare you for the future.
MountainousKiwi@reddit (OP)
Thanks for the thorough reply! Yeah, I’m a pretty involved guy on campus and have excellent connections with professors and employers. I’m meeting with the professor this week that found me my first internship to help find full time stuff. I’m just full of unknowns here and was looking for advice. Yall are awesome!
Adubue@reddit
Sounds like you're making all the right decisions!
MountainousKiwi@reddit (OP)
Do you have any advice for college people when interviewing?
Adubue@reddit
Grab this book: https://amzn.to/3OkRRoC
We read it in grad school and it was beneficial to me.
When interviewing people, their resume has already told me that they have the things I want for the job. In the interview, I primarily assess if I could see the candidate fitting on on my team. There's an old saying that you use interviews to determine if you'd be willing to sit next to someone all day, everyday.
Answer each question with a specific answer. If you don't have an answer, don't be afraid to be honest and tell the interviewer you don't have a specific answer, but can tell them about what you would do (if it's a behavioral type question).
Aside from that, be prepared for the interview. Showing up with written notes (or typed notes on your screen if a Zoom interview) just shows hiring managers that you're prepared. Know the name of the CEO. Know any major news that's going on. Know basic industry trends.
Finally, have good, meaningful questions prepared for the interviewers.
Writingmama2021@reddit
This is a really well-thought out and helpful answer!
JAT465@reddit
Start by getting yourself prepared for self sustainable means.
Start reading books on growing your own food. Raising protein animals ( to eat)....
Learn how to build greenhouses grow tents,lights etc.
Learn how to build a generator with things you'll pull off of junked cars truck and old houses.
a store of food stuff will keep you alive for a couple months. Knowledge and the skill for practical application will keep you fat and happy forever....
Learn the basic application of solar power and ways to build your own panels, battery banks etc....
You don't need lots of cash or land to survive ("although it certainly helps")!!
If you have skills, you can barter your knowledge for their goodies....
MountainousKiwi@reddit (OP)
That’s what I’ve been thinking. I’m a fast learner and love books so maybe some resourceful living stuff will hell
JAT465@reddit
You can find mountains of downloadable books at Z library ( Reddit group for specific source that will show you how to access it).. Good Reading
gilbert2gilbert@reddit
The best time to be in college is during a recession
Stuck-in-the-Tundra@reddit
Out of curiosity why?
mad_method_man@reddit
you dont need a job (hopefully). youre investing in yourself. after that its mostly just waiting for the economy to recover
sadly... the 08 crash didnt really recover for the working class for, depending on who you ask, 6-12 years
ABC4A_@reddit
Don't need a real job at the time.
Reduntu@reddit
The might be the worst advice I've ever heard on all of reddit.
Being in college in 2006, 07 or 08 means you're fucked for the first 5 years of your career.
Unlikely-Ad3659@reddit
Yep, I joined the workforce in a serious recession, laid off 4 jobs in one year, Last in, First out. Months to get another, hundreds and hundreds of rejected applications for fake jobs, I survived temping by working in school kitchens, 2 hour shifts, but I could eat my fill of leftovers some days. I ended up becoming a builders labourer, I did banking and finance in college.
It is hard, and by the time recruitment picks up businesses hire the new grads, not the people who graduated a few years earlier and who have a messy and erratic work history.
NBA2024@reddit
Because you aren’t doing shit
Big-Preference-2331@reddit
I buy puts on SPY to hedge my 401k profits. I'd keep a paycheck in cash somewhere safe. I'd get a credit card(for emergencies only). I'd learn a skill for a side hustle or start monetizing a skill you already have.
jennifercd2023@reddit
Get physically fit. pay off all your debt. learn useful skills, think blue collar jobs like plumber, mechanic and so on.
zorionek0@reddit
Modifying Dave Ramsey’s baby steps a bit since you’re young and childless.
Those five things are going to put you on sound financial footing no matter what else is going on in the world.
According to CNBC 56% of Americans can’t afford a $1,000 emergency. 37% couldn’t afford a $500 dollar emergency. No matter how prepared you are, you WILL encounter an unexpected financial crisis. Being able to manage that is key.
Next up, paying down your debt as fast as possible. I’m not saying chop up your credit card, but do treat it as something that must be paid off every month. Likewise, car payments and student loans can be hundreds of dollars a month each. The sooner you can pay those off the better, because it makes it easier to do step 3.
Save up a 3-6 month emergency fund. Calculate your monthly non-negotiable expenses (food, utilities, rent, $3000 scented candles, etc) and then set aside money until you have one month, then three, then six months saved up. By paying off your loans you have more money available to save AND have a smaller amount to cover. This cushion should give you enough time to find a new job if you’re out of work.
Max out your retirement savings to whatever your company will match. If you’re fresh out of college, start withholding this money from your very first paycheck and you’ll never even miss it. By saving for your retirement you’ll be prepared for future downturns as well as potential challenges to social security.
Finally, if owning a home is important to you, after you save up a six month emergency fund and are secure, start putting aside that amount towards your down payment. If the housing bubble pops you’ll be in a good position to take advantage of cheaper home prices,
NBA2024@reddit
Correct. Dave Ramsey is a godsend for people who are consistently bad with money. He’s lifted millions out of debt. Read the end of the second sentence if you want to flame me or hate on DR
cophotoguy99@reddit
I agree and think his total money make over book is a very great read to get you on track. However I can’t stand him or his stupid radio program.
cellardoor_7@reddit
Focus on community, find mutual aid groups in your area with common goals, make good relations with your neighbors. Take care of your debts, don't let a bank or debt collector rob you when you might be down and out already. If you're worried about something besides the stock market, or if your quality of life depends on the stock market (which it shouldn't), prepare. Hurricane area? Prepare. Earthquake area? Get ready. Don't overthink it, start with the basics and go from area to area. Don't overspend, take it one thing at a time. Remember that most situations will be resolved and life will resume, whether the return to pre-conditions happens or not, so do what you need to do to get you, your loved ones, and your community through the next event, whatever that may be.