Recession Questions

[QM]

OK...I've googled some information on what a recession is and I have a few questions that perhaps people could answer.

Do you think there is going to be one? What is the likelihood it will end up in a depression?

What can I do to plan for a recession? I know that people on this site are stockpiling and saving Emergency Funds (EF's)...is this the best way? What else can I do?

Do you ever wonder about a recession or is it just me? Does it concern you? (The more I hear the word, the more it makes me wonder.)

Do you think that discount stores will do better because their prices are lower and people will want to shop there to save money? (including Wal-Mart)

Feel free to add more questions, and hopefully people will add their imput.

[forHISglory]

I think we are already in a recession, but I don't think it will go as far as depression (as in 1930s).
What to do:
1 Save; don't spend without first giving it a long hard look.
2. Make everything have a second purpose; don't throw things away.
3. Develop an attitude of satisfaction with what you have, and not a gnawing longing and hunger for what you do not have.
4. Learn to have fun without spending any money.
5. Develop sustainable skills, like sewing, canning, gardening, farming, engine repair, etc.
6. Continue to be generous through your church, your community, etc.
7. Stockpile not only food (and do it wisely so that you do not have waste), but also clothing, health and beauty aids, firewood, seeds, and other items used on a regular basis.
8. Determine to celebrate holidays and family occasions without money or with very little money.
9. Listen to and read sources like Crown Financial, Dave Ramsey, Tightwad Gazette, and other sources mentioned here.
10. Pick up jobs when you can, or look for ways to make your own jobs (pet, child, house or elder sitting, lawn work, mending and sewing, house cleaning, etc). The idea is to bring in more money to the household, while at the same time seriously containing expenses.
11. Actively search for ways to cut utilities.
12. Be creative; think out side the box.
13. Pay down debt and add no more debt.
14. Reconsider transportation and use the car sparingly. Keep vehicles well maintained.

Does this help?

[khjmom]

It helps me..thanks a bunch! Terri

[Wendy99]

wow great tips here

[fuzzybunny]

"Do you think there is going to be one? What is the likelihood it will end up in a depression?"

I think we are already in a recession. I do not know if there will be a full out depression, at least not just yet. I think the government pouring money into the economy via banks has delayed things, but I also believe they are sprinting down a track to bankrupting our nation. Since we don't actually have this money the "solution" is just deepening the debt black hole. If our dollar is destroyed by this and other countries begin to refuse to loan us money we are going to be a lot like those people stuck in adjustable rate mortgages... FUBAR-ed then I think anything is possible.

What can I do to plan for a recession? I know that people on this site are stockpiling and saving Emergency Funds (EF's)...is this the best way? What else can I do?

Pay off your debt, stockpile, emergency funds and start learning old skills. My sister and I are taking cheese-making classes. We might not ever need it but if there really is another great depression type situation then it will be a useful skill and is fun in the mean time. Learn to bake, do basic sewing and start practicing your black-belt tightwad skills now. Use it up, wear it out, make it do or do without!

Also start networking now. Friends, good friends are indispensable in such times. You need to know people who are dependable hard workers who will be willing to trade work back and forth with you. This weekend my sister's intended got a bunch of us together to help him move and split wood for his grandmother this winter. Again a useful skill big city folks don't get to practice so much. Also gives people a realistic idea of how hard that kind of work is and really made it clear how important numbers can be, with 6 people we got done in a single morning what would have taken one person several days. .

Do you ever wonder about a recession or is it just me? Does it concern you? (The more I hear the word, the more it makes me wonder.)

I don't wonder much anymore because I believe we are already there. My family had it pretty tough during the Regan era recession and this feels just like it. So even though the government won't say the "R" word, I am fairly certain it has already come to pass. It doesn't concern me too much. I lived through the last one and I will make it through this one. I am actually a little disappointed at the level of meddling the government it doing. While it would be painful for many I believe a good recession would go a long way in improving many of the negatives our nation currently engages in... excessive debt, not seeing physical labor as having value, spending more time with gadgets than humans, not learning new skills etc etc.I guess I see it as a kind of economical medicine... we wouldn't like it but as a nation it would benefit us immensely.


Do you think that discount stores will do better because their prices are lower and people will want to shop there to save money? (including Wal-Mart)

Yes, I do. I also think barter for both goods and services will become more popular. Collective efforts will also gain ground. For instance, I don't have a yard, but I was able to get my friend to allow me use his backyard for a small garden. We split the cost of the plants and I helped with planting weeding and watering and we both got more fresh veggies then we could eat. He was particularly appreciative of this idea as food prices quickly rose this summer. He is already planning a bigger garden for us next year. Now he is excited to learn how to can and pickle what he grows.

If the economy continues as it has or gets worse I believe that people will work harder to find ways to avoid even the discount stores altogether if they can.

[misscas]

I'm on disability so I'm not worried. If disability comes to an end, I can live in my parent's basement and work part-time.

[DonnainME]

I agree thinking we are in a Recession. We do stockpile what we can - not enough. DH's job is seasonal - that doesn't help things. I sell from a brochure every 2 weeks - direct selling company - and get "commissions" based on sales then minus my costs for brochures and supplies.

We are already depending on food stamps. If that went down, it would really HURT us. We would find a way to get by. It would mean eating a different way - the way my Diabetic Dr would not be happy with.

We have cut our expenses WAY back. Our total monthly budget is about $750 - $800. Of that I have a business cell ($30). Our "fun expenses" are Dtv ($40 - only because of extra TV), Netflix ($8), and a game site for DD ($7). We live 20 miles from the nearest town with anything to do. Our town does have ONE grocery store and a gas station. I think we are doing ok for our situation. I do wish we had a bigger garden this Spring and Summer. We are planning on it next year - already have some of the seeds.

[shortstack]

fuzzybunny I couldn't agree with you more about this:
While it would be painful for many I believe a good recession would go a long way in improving many of the negatives our nation currently engages in... excessive debt, not seeing physical labor as having value, spending more time with gadgets than humans, not learning new skills etc etc.I guess I see it as a kind of economical medicine... we wouldn't like it but as a nation it would benefit us immensely.

[ironmaiden]

Do you think there is going to be one? What is the likelihood it will end up in a depression?
Recession -yes. Depression - don't know. But this is the closest we've come since 1929. The argument that the unemployment rate was about 25% then and isn't now doesn't hold. Afterall, I doubt that on day 1 it was 25%.



What can I do to plan for a recession? I know that people on this site are stockpiling and saving Emergency Funds (EF's)...is this the best way? What else can I do?EF - got to be able to pay the basic bills - as someone once told me - you can't eat the house. Stockpile, but don't go overboard and spend all cash stockpiling - set a stockpile budget. Need to build up cash as well as have the rainy day food supply. Pasta is on sale at Shaws for 2/$1 and I haven't seen that price for any type of pasta for close to a year now. I've been going daily to buy my 8 box limit.

Evaluate what your family does for a living. How do you think that industry will do during a recession? I used to tell people to job hop to where they'd want to be when times are good (think commute, type of work, work environment) cause when a recession hits you'll be stuck there - if you are lucky.

I also think that it is a good wakeup call reminding people to live within their means, save for a rainy day.

Do you ever wonder about a recession or is it just me? Does it concern you? (The more I hear the word, the more it makes me wonder.)
People are very worried. The media creates a feeding frenzy of fear. Whatever the "in" news topic is, they go overboard. So it is hard to gauge exactly where things are at. As Hoover said "It's a recession when your neighbor loses his/her job, it's a depression when you lose yours"

Do you think that discount stores will do better because their prices are lower and people will want to shop there to save money? (including Wal-Mart)
What happens is that people usually take a step down in their level of buying. By step down, I mean if you shopped at the mall, you'll "downgrade" to Target. If your shoppng was at Walmart, you'll spend less there, maybe start hitting the thrift stores.

[monkeywrangler71]

OK...I've googled some information on what a recession is and I have a few questions that perhaps people could answer.

Do you think there is going to be one? What is the likelihood it will end up in a depression?

Considering the economic stats released this month, I think that most economists agree that the US is in recession now. Although Canada is coming into this in a better economic position than most and at this point still has a marginally positive growth forecast, it is difficult to maintain growth in an export based economy when the rest of the world is in recession. It will be a near miss at best, if the rest of the world, primarily the US, are able to recover quickly. If it is long and deep, we can not avoid being dragged into it. However, conservative banks and the fiscally conservative governments of the past decade have at least kept us from overextending ourselves, so it shouldn't be as painful as the 90's.

I think the likelihood of a depression is slim, but it all depends on how long people continue to panic, and how long the media stokes that fear.

What can I do to plan for a recession? I know that people on this site are stockpiling and saving Emergency Funds (EF's)...is this the best way? What else can I do?

The best way to prepare for a recession is to live every day of your life with the realization that the economy is cyclical. When times are good, don't forget that at some point times will be bad. Spend your life living within your means, avoid debt and save for the future, and you will be prepared for every recession that comes your way (and there will be many).

Do you ever wonder about a recession or is it just me? Does it concern you? (The more I hear the word, the more it makes me wonder.)

Everyone on this board has been through a recession at least once, many are just not old enough to have felt the full impact. I don't really wonder about them, I know they happen, I've seen them, I grew up in one and I started out on my own in one. Maybe I am less concerned than many because I am always expecting one, it can't really sneak up on me. In good times this is called 'depression mentality', in bad times it's called being prepared.

Do you think that discount stores will do better because their prices are lower and people will want to shop there to save money? (including Wal-Mart)

Depends on how well they run their business. Kmart was pretty much annihilated in the 90's.

[QM]

...Everyone on this board has been through a recession at least once, many are just not old enough to have felt the full impact...

In 1990 I was only 12 years old, so I don't really remember!!! I kind of remember people were talking about money and such, but not much more than that.

[fuzzybunny]

[I]Recession -yes. Depression - don't know. But this is the closest we've come since 1929. The argument that the unemployment rate was about 25% then and isn't now doesn't hold. Afterall, I doubt that on day 1 it was 25%.

You also have to remember that the government no longer calculates these statistics the way they did in the depression... or even the 70s. They exclude the cost of food and energy in their calculations. They also exclude folks whose unemployment benefits have run out and still are not employed. People who had a 80 grand a year job and got laid off and could only find employment at 30 grand a year are not counted either.

They do this because it looks better and keeps us from knowing exactly how bad things are. If you calculate inflation and unemployment in the same manner as they did during Great Depression we are already into double digits for both... although not near 25% yet. I haven't checked into any changes they may have.... okay most likely did make, in the way they figure trade, consumer spending etc but if we calculated those in the old ways as well I am willing to be the numbers would show, according to 1930's calculations we are well settled into a recession by now. So while I am not sold on "The Next Great Depression is Just Around the Corner" I do know that it you ever see comparable numbers on TV the reality is things are even worse than the 30s.

[HappyMama]

You also have to remember that the government no longer calculates these statistics the way they did in the depression... or even the 70s. They exclude the cost of food and energy in their calculations. They also exclude folks whose unemployment benefits have run out and still are not employed. People who had a 80 grand a year job and got laid off and could only find employment at 30 grand a year are not counted either.
.

Very true!