How are you dealing with the recession?

Question

If it's not obvious enough at the gas station and grocery store, I heard on NPR yesterday that the DOW shrank the lowest since the start of the pandemic two years ago. Prices on everything are hurting, especially for the lower-income populations.
Groceries are regularly costing me 200+ dollars a trip. Filling up half the tank still costs 25 dollars. It's hard when people tell you to stock up on food and resources when subsisting alone is leaving me to break even. Nothing really left to save.
It worries me like a lesion on the verge of infection. I am worried about the state of things.
When everything was shut down and unemployment applications hit an epic high, they warned us we would face the consequences of that moment for years to come. I haven't forgotten that, but at the same time it is terrifying to me as a young person.

MrOracle · Accepted Answer

The recession has yet to begin - this is just the precursor. Go read about Jimmy Carter's presidency and the gas crisis. Then, as now, the government was far more concerned about spreading their message than solving real problems.

Trump is a loud blowhard, sure, but he focused on fixing real problems and in avoiding wars. He was responsible for 6 major peace agreements, any one of which would have won a Democrat the Nobel, but the media did their very best to bury that news. He pushed hard to bring manufacturing back to the US and had some real successes, but of course Biden reversed every one of these and many other accomplishments his first day in office. All but the wealthy elites will suffer as a result.

The US was energy independent under Trump, and now we are a major importer again because Biden killed huge amounts of domestic production. You pay for that decision every time you go to a gas pump.

Yes, Trump is crass and crude, but he actually did things that improved YOUR life and hundreds of millions of others, while Biden's policies actively harm you and your loved ones and hundreds of millions of other people. Biden's team cares only about spreading their narrative, and the message is the only thing that matters. Biden is rich and getting much richer, as is everyone else at the top of his administration. They don't care what happens to you - just make sure you only listen to the Ministry of Truth, because their doublespeak is all that matters. What they said yesterday has nothing to do with today, and in fact, never happened at all. You only need to love Big Brother.

ArtemisSilver · Accepted Answer

I'm a millennial, the recession has been apparent my entire life. I live well beneath my means and do a bit of crypo trading to make ends meet. I don't pay for a car or insurance, and use the money I save as an emergency fund and to invest instead. I get around on an Ebike or via Uber.

Whenever the job market turns hostile, I take a break to upskill and adapt. Rather than just take it.

If things get really dicey I can further reduce my costs by cooking simple stuff from scratch and foregoing restaurants and cafes.

The best way in general is to lower your demand for goods and services, desync your financial situation from the up and down of the market.

For example, the last few years were an excellent time to borrow money.

If you did, without spending it, you could be living off it now while things are rough.

Regarding paying of said opertunistic loans: Either wages will rise to meet inflation and the debts will be easier to pay, or people will just default and start over.

The trick is just to be doing the opposite of what the crowd is doing.

theothersider · Accepted Answer

This isn't even the recession. Trust me when I say... it will get way way way worse than this. all the funny money that has been injected into the economy hasn't even really hit yet and fertilizer is up 137%. Honestly tho I am fine being millennials as soon as my husband and I clawed our way out of poverty we invested into assets and set things up in such away that the whole economy would have to collapse to really hurt us. The problem is having to help out our parents and siblings that are not nearly as financially sound as us.

Prettygurl12 · Accepted Answer

Um.. I guess I'm not? Our monthly take home pay is high enough where we just adjust the budget to pay more in gas and groceries and a little less toward our various saving goals and it's more annoyingthan stressful. Don't get me wrong, I would love to not pay $4/gallon for gas or $200/trip for groceries, but it just kind of is what it is.

Anonymous · Answer

I spent the last 20 years. Building to prepare for such a thing. I'm not saying my investments haven't taken a hit, they have. But I know the value is still there, and it will return. I don't want to sound like I'm parroting Jim Cramer. But there's almost always a Bull market, you just have to look for it. I take this time to look for undervalued stocks beaten down by fear. Then I just sit and wait for normalcy to return.
I don't want it to but I could whether this recession for a decade if need be. Because it's a way of life for me to live below my means.

NathanDavis · Answer

I have always lived within my means... that is the best way

but I also grew up in Mexico, and there you learn not feel entitled to anything, never let yourself depend on the government or anyone else for that matter

you work hard and then you work twice as harder... till you're able to work and SPEND smarter so you can get by

NamerOfStars · Answer

Poorly. A mass influx of money without real wealth behind it brought down the Spanish empire; it looks like we're headed the same way.

A little-known corollary to Santayana's misinterpreted maxim is that those who DO learn from history are doomed to watch everyone else repeat it.

Fireguy17 · Answer

We notice it, but so far it isn't bad.
We don't drive too much, go out to eat less.
No major purchases coming up, so we can live pretty cheaply.
Our house is about 4 years old, so we missed the rise in cost of that, and out interest rate is really low, so we are in good shape there.

Anonymous · Answer

You think it's bad now? Come back to this question 6 months from now. Food pantries and shelters will be overflowed. Food shortages haven't even hit America for the most part. Take a look at how people lived during the great depression. That's where were headed.

NYlatefun · Answer

LOL, there's no recession going on. Do you mean inflation? by the way, employment is really high.

This is the definition from Investopedia: "It had been typically recognized as two consecutive quarters of economic decline, as reflected by GDP in conjunction with monthly indicators such as a rise in unemployment."

888theGreat · Answer

It is over, it will only get worse. Anything Gov't pays for with printed money will only create more inflation. They know it and say it doesn't.

We haven't felt China's shut down yet and that will be in Fall. You might buy extra items now.

We will feel Ukraine and Russia war and no wheat sometime next year. No bread , buns and many other items.

We still have people that won't work.

TickleMe4ForFun · Answer

It is a great time to own a business, as you have free reign of how much to increase prices, using the inflation and higher wages as an excuse. Rent for the three properties I own was going for $1250/month. Now I can charge $1700 and people still rent it.

It has to suck being a 'clock in/clock out' kind of worker as those people are stuck in those crappy jobs that they have to work whatever schedule the boss tells them to work, for a measly salary!

Static_In_The_Attic · Answer

Like a roller coaster life has its ups as well as its downs & like a ball I just have to roll with it no matter what. My stomach requires food & my vehicle requires gasoline & my life requires fun so it’s business as usual.

exitseven · Answer

I amsending ut resumes ang going on a few job interviews. I had somebody call me about a job yesterday and maybe something will materialize. I have been without a paycheck since last November

jamesgoldman · Answer

There's a recession, things couldn't be better in my ballpark, I've had to borrow money to allow me to make more money, a year if this and I'll be improving my monthly baseline faster than inflation

Likes2drive · Answer

You just have to weather through it , I’ve been through a lot of these tough times, just save what you can , budget yourself, the market always goes up again, it’s just a matter of when , probably when the next president is in

BarryLiverstone · Answer

Making sure I make responsible financial decisions and prioritize longterm investments and shifted more into liquid savings. The good news is the economy is cyclical so by 2023 we should swing back.

jennifer_bloom · Answer

I’m not worried about the recession, I’m too busy with my book writing to notice

ChefPapiChulo · Answer

LOL this is not a recession. It’s inflation. Literally all the jobs around me pay $20 an hour now. I don't know where you’re living but it sounds like shit.

Zenit93 · Answer

I'm investing into passive income. High generating yield platforms in the crypto space predominantly. I'm dollar cost averaging into the decline.

IsoUser · Answer

Do you honestly expect Americans to cave individually under a Russian threat? You seriously have to be kidding me!

Aiko_E_Lara · Answer

I just grew up learning how to save because I used to live in the poverty. So I know some cost-cutting techniques.

Waldoe · Answer

I sleep late and watch TV... so, nothing has changed

Alcoholic_Wannabe · Answer

Everyone yammers on about a recession at the beginning of a new year. 🙄

How are you dealing with the recession?

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