[HN Gopher] Ask HN: How are you preparing for the recession?
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Ask HN: How are you preparing for the recession?
Obviously, if you believe there will be one in the next 3-6 months!
My question is for someone in tech, but of course, please feel free
to chime in even if you are not in tech 1. What are the obvious
Dos and Don'ts? 2. Were you around during the last one? How did
you survive it / What got you through it? 3. What did you learn
from the last one? Any dumb mistakes you made last time that you
wish you didn't? What are some of the common mistakes people make?
Author : noobrunner
Score : 39 points
Date : 2022-05-19 18:29 UTC (4 hours ago)
| tkiolp4 wrote:
| As many have pointed out, I think recession it's here already. I
| just switched jobs and got a 20% salary increase. Fortunately
| enough, we developers seem to be not that much affected. Touching
| wood, though.
| my69thaccount wrote:
| If you're asking how to prepare for a recession, the recession
| has already begun. Changing your behavior now is just going to
| lock in your losses. Stay the course and don't be distracted by
| changes around you.
| kradeelav wrote:
| - aggressively trim unnecessary expenses like media
| subscriptions, the "extra coffee", immaterial luxury goods. you
| don't have to live like a monk, but all of us could easily trim
| our fun spending by 20-50%.
|
| - have 6-12 months of emergency cash that can sustain you if your
| main source of income fails. something will always happen,
| whether it's an appliance or car that breaks down, or an
| unexpected medical expense. slush funds are good.
|
| - 'if it ain't broke, don't fix it'. make stuff last the extra
| mile, if you can. stretching electronics and clothes .... fixing
| electronics (when realistic) instead of buying the new shiny
| thing ...
|
| - don't sell stocks. if anything; if you're fortunate enough to
| truly have extra cash, buy that stock at rock-bottom prices
| you've been eyeballing for a while. buy low, sell high.
|
| - if you have dependents, be extra conservative with your cash.
| you will need each other.
|
| - this too, shall pass.
| jghn wrote:
| I used to keep a 12 month e-fund in cash. Then it became 6. Not
| too long I moved it to be almost 0. Which yes, that sounds very
| wrong.
|
| But the thing is, if we get to a place where my investment
| accounts & credit card can't cover me for several months we as
| a society have much bigger problems. I'd prefer to _not_ have
| to eat into those, and yes if the markets crash enough I 'd
| have fewer months buffer in there. But if the shit hits the fan
| enough that I can't live off of it for a while I don't believe
| cash will help out a whole lot either.
|
| Granted over the last couple of months the net value of that
| money would have dropped less if it were cash than in my
| investment accounts. But that's another matter altogether.
| savanaly wrote:
| I agree except for the part about "buy low, sell high."
|
| Timing the market is a fool's errand, and it gets no easier
| during a time of recession.
| noobrunner wrote:
| I am shocked. No one has yet said 'Buy Crypto' :)
| nullbytesmatter wrote:
| Diamonds hands!
| ArtWomb wrote:
| Believe it's a great time to consolidate car ownership.
| Especially with transition from ICE. More car sharing amongst
| extended households. And of course a drastic reduction in total
| miles traveled ;)
| jokethrowaway wrote:
| - Bought real estate.
|
| - Got a remote-first job outside of crazily inflated tech money
| while still asking for tech money because the market for
| developer was crazy hot a few months ago.
|
| The previous one wasn't too bad personally. I can't say I ever
| had problems finding a job, no matter the market. Network
| aggressively, sell yourself well.
|
| Invest in people skills if you suck at it and you won't have
| problems landing a job, even during the recession.
| AznHisoka wrote:
| I quit my job during the last recession to do a startup (which
| ultimately failed). A lot of people thought I was crazy, but in
| hindsight it was the right move, as I learned a lot of things
| that I was able to parlay into a 2nd startup.
| noobrunner wrote:
| Wow, that's a ballsy move. Did the startup fail because of the
| recession time/lack of funding?
| AznHisoka wrote:
| It failed because I didn't execute well and chose the wrong
| market.
| gvb wrote:
| "Why to Start a Startup in a Bad Economy"
| http://www.paulgraham.com/badeconomy.html - Paul Graham
| randomopining wrote:
| Everybody is saying recession all the time, so I doubt it will be
| that severe. Isn't a recession more like it comes out of nowhere
| and people get hit hard quickly, thus the economic inefficiencies
| caused are a drag on the total economy?
|
| I don't see what's unhealthy about our economy besides the fact
| that super cheap money may be gone for awhile. Alright so
| companies like PLTR go down, whatever.
| esotericimpl wrote:
| MrGuts wrote:
| A recession is not the worst thing in the world. It's a business
| cycle, and happens on a regular basis. A recession might
| (hopefully) chase out some inflation; and it might clarify where
| some opportunities reside (like new infrastructure, or worker
| retraining/relocation).
|
| A little bit of inflation isn't too bad, either. It helps people
| pay off debt with less valuable dollars. Bottom line: A little
| bit of inflation is OK, and periodic business retrenchments are
| OK. A whole lot of inflation, or a deflationary spiral, is
| horrible.
| Clampower wrote:
| I'd like some advice please.
|
| I am currently freelancing with one major client. I only work 3
| days a week which is great and I make a good amount of money.
| Client is a small company, seems financially secure, but eh could
| also go belly up I suppose. They offered me a fixed contract but
| it would be for less money than I now make freelancing, +4 days a
| week. Should I take less cash and less freedom for the security
| that a fixed contract would bring (and eventual governmental
| support of the company goes belly up)?
| nojito wrote:
| It's already here.
|
| However recessions have been getting shorter and shorter every
| time they occur.
| Bubble_Pop_22 wrote:
| Which is a negative thing because forest fires are essential
| for the quality of the soil so to speak.
| toomuchtodo wrote:
| 1. Keep 6-12 months of expenses in cash on hand. Cash. Not SPY,
| not I bonds, not HELOCs or lines of credit. Cash. When you are in
| financial peril, you don't want to deal with a closed credit
| line, deeply depressed assets, or locked up instruments.
|
| 2. Don't lose your job.
|
| 3. Network in case #2 doesn't pan out.
|
| (lessons learned from the 2001 and 2008 crises)
| NickRandom wrote:
| 1a. Don't Go out on a limb, now is not the time to scatch that
| itch. 1b. Do batten down the hatches in any and every way you
| can.
|
| 2. I was a self-employed freelance consultant. I survived by
| being good-ish at what I did. What got me through it? The
| alternatives.
|
| 3a. Boom-and-Bust are cyclic. 3b. The rich get richer each time
| the music stops. 3c. That which is old becomes new again. 3d.
| Always know how to fix _something_ because when times are bad the
| rich will either want something fixed or want some new shiny
| thing installed. Times are seldom tight for the rich (or rather
| they tend to be the last to suffer before 'something is done
| about it')
| tluyben2 wrote:
| Start a new business. Recessions are great for that especially if
| you already have funding or if you can bootstrap. Did it in 2001
| and 2008 as well; great stuff.
|
| I would say though; be careful with with spending cash. Depending
| on your situation, it might be harder to come by. Many people I
| know who got fired in 2001/2008 and who had too high mortgages,
| debt and little cash fell on hard times for a few years.
| sc00ty wrote:
| Could you elaborate on why it's a good idea to start a business
| in a recession?
| hitovst wrote:
| Reduce overhead as much as possible. Reduce debt (least safe
| first) as much as possible. Invest in necessities that you and
| your family can consume/use.
|
| People have all kinds of theories about what will be best
| currency, and stockpile stuff they can't consume/use. Cover your
| basis first.
|
| Invest in any skill that will enable you to produce something.
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(page generated 2022-05-19 23:02 UTC)