Recession Planning

[RamblingMad]

I’ve been working on recession plans at work off and on since 2016. And I have been shoring up my own finances as much as possible. Of course, stuff will break in my home that I cannot completely anticipate.

What are your household plans for a future recession?

 

[mommajo143]

Interesting thread / topic. Maybe I have my head in the sand but we don’t have a plan. We live within our means, avoid debt, and put money away in savings. I guess that’s our ‘plan’

 

[tvguy]

Interesting thread / topic. Maybe I have my head in the sand but we don’t have a plan. We live within our means, avoid debt, and put money away in savings. I guess that’s our ‘plan’

Same here. And I've been through a few recessions.

 

[QueenIsabella]

No plan here. We've lived through recessions. NBD. We survived the tech bubble of 2000 (or so), the Great Recession of 2008. They can be great buying opportunities, for stock and for some industries, like auction houses.

 

[CoP Luv]

Have a fully funded emergency fund and no debt outside of our mortgage. We already live well within our means, so if there was a financial crisis where we had to really watch our spending, I don't think it would be too hard.

 

[RamblingMad]

I lived through the last two. My plan now versus than is to have more liquidity. I had the three months of salary as recommended in the last two.

Now, I’m far more liquid. My plan now is to have less exposure to risk assets. My big concern is the Powell Put. I didn’t like what happened with Greenspan when he stopped raising rates, nor did I like what happened when Bernake did the same. I have no idea why Powell stopped.

The other change I’m making is to pull back my spending. I do save 20-30%. But I’m less likely to buy big ticket items going forward unless I really have to.

 

[TwoMisfits]

Funny enough, the recession years tend to be my larger spending years. It's when I plan the Florida Disney trip and replace the "would be nice to replace car", since deals tend to be unbeatable during recessions for both types of items.

In times like now, we stay solidly within our means, and save as much as possible, and don't "buy things and do things" just b/c we want them (when those items are at price highs) - we do what our budget for the items allows, even if it means we're in TN and VA for vacations this year and not FL...

I guess we're kinda contrary that way...saving in the good times and spending in the bad times...but someone has to spend in a recession, so I figure I do my "consumer" part when it's most needed (and most beneficial for me)...

 

[RamblingMad]

Funny enough, the recession years tend to be my larger spending years. It's when I plan the Florida Disney trip and replace the "would be nice to replace car", since deals tend to be unbeatable during recessions for both types of items.

In times like now, we stay solidly within our means, and save as much as possible, and don't "buy things and do things" just b/c we want them (when those items are at price highs) - we do what our budget for the items allows, even if it means we're in TN and VA for vacations this year and not FL...

I guess we're kinda contrary that way...saving in the good times and spending in the bad times...but someone has to spend in a recession, so I figure I do my "consumer" part when it's most needed (and most beneficial for me)...

That’s how I like to roll. Unfortunately my car was dying after having it for 12 years, so I had to move on.

I can tell you that WDW looked like a ghost town during the last recession.

 

[barkley]

Interesting thread / topic. Maybe I have my head in the sand but we don’t have a plan. We live within our means, avoid debt, and put money away in savings. I guess that’s our ‘plan’

kind of the same thing here. we absolutely live below our means and save more than is recommended but we've lived through our own personal recessions such that when everyone else was in the same boat it didn't have quite the impact for us.

for us it's saving/no debt (including paying off the mortgage b/c that was a HUGE stresser when times got REALLY tough for us), keeping up on home/auto maintenance/repairs so we ideally aren't faced w/monumental expenses, and knowing our budget/regular expenses such that we can identify (for lack of a better word) 'tiers' of expenses we could reduce/eliminate (easy to cut back on optional/fun expenses, harder when it gets to the nitty gritty for things you require but we know with those where we could reduce them if needed). honestly, the biggest uncontrollable factor for us is healthcare costs-we only have one option for insurance, it's crazy expensive (biggest single expense per month) and it basically drives our other spending habits.

 

[cvjw]

Our plans for the next recession is to buy stocks when they go on sale. Just like we’ve done for the last recessions.

 

[bettymae1121]

Ditto everyone else. Debt free other than a mortgage, and said mortgage has a low enough monthly payment that we can squeak by on one income if we had to. Might be eating Rice and Beans 7 days a week but we can manage. On top of that we have six months basic expenses in emergency savings - that means if our income went to absolute $0 (unlikely between unemployment and disability insurance) we could make it six months before we'd really be in trouble. That buys us time to figure out our next steps, including listing and selling the house if need be.

I also have some investments earmarked for DD's college and retirement I could tap - but we'd have to be facing homelessness before I'd even think of touching that. I'd rather not imagine how bad things would have to be for us to consider doing it, but in a total "why does the universe hate me?" situation it's a last ditch back stop.

 

[MomToOne]

6 month+ emergency fund. Additional savings/investments that can be drawn on as necessary.

Know my budget, and what can be cut if need be. Live a modest lifestyle always, well within my means.

Make sure I am thought of as invaluable at work. It won't guarantee anything, but it doesn't hurt.

My concern isn't that I can't survive a recession, but more that my retirement savings would take a hit and I'd have to work longer as a result - not because I'd have to draw on my retirement savings, but because I won't be able to add as aggressively to it as I do now.

 

[tvguy]

Funny enough, the recession years tend to be my larger spending years. It's when I plan the Florida Disney trip and replace the "would be nice to replace car", since deals tend to be unbeatable during recessions for both types of items.
.

That tends to be our pattern also.

 

[missnic]

That tends to be our pattern also.

Same. I bought my house during the last one when foreclosures were an all time high. Got it for 50% of what it sold for brand new 5 years prior. It's since appreciated above that 50%. We also got APs for the first time during the recession and it really spoiled us as far as Disney crowds/prices/etc.

 

[kydisneyfans]

We bought our DVC resale during the last recession, we'll probably add points during the next one. The safeguard here is taking a chance on who is going to be in the next election. If the ideas of Medicare for all and business tax increases have a chance, I'll move savings out of the market and into a guaranteed rate fund in case the waters get choppy. Markets hate uncertainty, I'd rather take the gains I've had, lock it in, and let in ride vs the chance of a large drop. in all honesty, it may be something I'm going to do sooner rather than later anyway.

 

[runwad]

Travel and Home Remodeling! We got great travel deals during the last recession and I'm waiting on that again.

Also need to do some updates around the house, it's time! But I'll wait until contractors are begging me for work instead of me begging them to come out now. I get irritated and grouchy when I can't get people to come do what I want them to do, but it's ok, I have time, I'll wait

 

[Dakota731]

We’ve done so well financially since 2016 that we may actually be retiring early!

 

[yeahdisney]

TwoMisfits

Wait, what Disney is a ghost town during a recession. I will also do my consumer part
I always live within budget. I do wish I had picked up those soooo cheap AKL Dvc points but I was too chicken. With no crystal ball to guess the end.

 

[starry_solo]

No "official" plans, but I do save money. I do what the second poster said, live within one's means, not a lot of outside spending, that sort of thing.

 

[RamblingMad]

Wait, what Disney is a ghost town during a recession.

When I watched the Indiana Jones show during the recession, there were maybe two dozen people in the audience. I was blown away.