Thursday, October 20, 2016

Are You Ready For The Next Recession?


It is hard to say when the next recession will hit, but at some point in the future you can plan on it happening.  History has a way of repeating itself.  Speculation in many camps is that it will happen right after our presidential election regardless of which candidate wins.  I happen to believe this a real possibility.

While I am not an economic forecaster I do know that recessions happen and usually after a big event in this country, presidential elections being one of them.  I also feel that the best way to prepare for a recession, no matter what the circumstances that cause it, is to be well prepared ahead of time.


Money $$

I have an emergency fund and I add to it on a fairly regular basis.

I keep my bills paid ahead of their due dates.  In the case of an emergency or job loss this would give me extra time before the next ones are due.

I'm working very hard to eliminate my debt.  It won't be much longer until that is all gone, thankfully.  After that I'll be working very hard not to go back into debt.

Job loss can happen and sometimes unexpectedly.  My resume is always kept up to date and I'm prepared to get out there immediately and start hunting.  I'm also not too proud to take a job scrubbing toilets or flipping burgers if need be.

I know my options.  I know where to go, who to turn to and what is available to me should the worse happen and I find myself in desperate need despite my best efforts.


Home

Our home is our safe haven.  It has a sound roof and foundation and is properly insulated.  We keep it well maintained and buttoned up for winter so our heating and cooling costs are relatively low.

Our home is small and very affordable.  It is large enough for us to be comfortable and well housed but not too big at 990 square feet, give or take.  It is also economical as far as the mortgage and utilities are concerned.  A full time job at McDonalds, if need be, would easily cover our house payment and utilities.

Inside we have enough of the items we need with regards to clothing, blankets and basic essentials.  I also have enough skills and supplies to know if I can't buy it I can probably make it and if I can't pay to have it done I can most likely do it myself.


Food

Despite our extremely low grocery budget ($150.00 per month for three people) we have managed to stock our pantry, chest freezer in the garage and the freezer on our refrigerator quite nicely.  If we had to and were careful I'm sure there is enough food in this house to sustain us for at least a year.

We have a garden space in our backyard and a supply of seeds to plant.  We also keep chickens for eggs.

We keep several one gallon jugs of water stored in case of an emergency.  At some point I'd like to add a couple rain barrels to our house.

While we live in an area that is less likely to be hit by natural disaster or even terrorists (knock on wood) and I'm not a big believer in zombies no place is immune to financial crisis.  The economy effects us all.  It effects the real estate market, the job market and the price of goods.


Even without a country wide recession, a job loss or medical emergency can put a family into its own private recession.  For most of us the financial crisis that hit back in 2007 effected us greatly and it wasn't too long ago for us to forget about it either.  A lot of us are still effected and working our way out of it.

Are you prepared?  What are some of the things you've done or are doing right now?  Do you think another recession is on the horizon?



8 comments:

  1. I do think a recession or "something" very possibly may happen after the election. We are as prepared as we can be.
    Scary times .......

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  2. The issue is not us, or our daughters. I feel confident that we have enough skills between the four of us that we would get by okay, even if we lost house, car and everything. The cousins on one side of the family have been discussing this issue, as well -- and the plan is that we would band together as a group to garden, hunt...but especially take care of the less-able members of our family. Like kids and elderly in poor health. My grandparents did this during the Depression with their family members. Grandpa had a steady job as the local mailman, and they took in cousins, etc. who helped on the farm and lived there. Grandma had a chickenyard -- they had cattle and crops. They got by.

    We're perhaps a little TOO prepared, foodwise. I've stocked up for ages -- but haven't always pulled the old cans forward before buying new ones. So ironically, my plan this winter is NOT to stock up, but clear out the old stuff. Which is still good. The only exception would be canned soup, which is on sale this week. :)
    We have some investing strategies, which I think will help us in a recession -- but also if the world goes completely to pot. For a recession, though, I keep a healthy share of my stock $$ in index funds. They've uniformly done well, even when the market is okay. (Try Vanguard's, which have low fees.)
    One of our future plans, though, came to fruition: we bought a 29-foot trailer that we intend on living in within a year. (We'll sell the house.) Could you do a looking-back post on lessons you learned from your own experience with trailer living? I've already picked up some enormously helpful tips, including having a bed that lifts up with under-storage. (Ours does.)

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    Replies
    1. It is so great to hear you have a plan as so many people don't. They just plan to wing it or they are in denial. I would downsize into a trailer, motorhome or van in a hearbeat if the economy tanked. It was a really good experience, although there were times when it was challenging.

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  3. great post! I too think a recession or even depression will happen sometime within the next year.

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    Replies
    1. I think we would be foolish to not at least consider the possibility.

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  4. A recession would be the best case scenario. Many are predicting a civil war.

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  5. A recession would be the best case scenario. Many are predicting a civil war.

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Your kind comments are always appreciated. I love hearing from you.

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