Strategies for Surviving a Recession

[kav122]

Originally Posted by jdp

Thanks kav. I've been working on this for two years. I guess thats when my recession mindedness kicked in. It helps that I live in an area where houses are pretty cheap and I and family have some skills in fixing things up. And with rents being more than mortgage+taxes+insurance it just seems to make sense. That and I'd have more control over the other budget eating things like utilities. No one else is pushing me but me. The problem now is most places won't do a mortgage under a certain amount so I've been working up to 20% down figuring in that to hit the minimum they want for a loan amount. Which puts me just in the range of the group that buys properties to flip or convert to multiple rental units. GRRRR

2 things that you can try.

1. you don't have to be a fan of his, but go to daveramsey.com, click on ELP (endorsed local provider) for real estate, and get the name of a mortgage person in your area. He has GOOD people working for him. Also people that do manual underwriting, so they look at the whole picture.

2. try a credit union. They might just see what you've got going for you and take a "risk" on you that other bigger companies wouldn't. Once again, it is more person-to-person than the big Fannie Mae companies.

[kav122]

oh, and I forgot to say that I increased my 401(k). That isn't helping our family right now, but hopefully it will pay off in the end.

[redsoxmaniac]

It is a buyers market. I bought a house in September and got a vg deal, I am sure there are some even better ones...but for me the location and floorplan was ideal and the place immaculate. Really helps to have a good Real Estate person. Interview someone unless you know someone who you like and trust. I was fortunate in that end. You can always wait, but if it is more advantageous to buy something for tax reasons as opposed to renting this is a great time. Especially if you think you will be in the house long term and your job etc is secure. We made a ridiculously low offer on a house that at the time was reasonably priced a comparable model had sold for an additional 18% above what this listed at a month prior. Bottom line is we paid 25% less overall. Be prepared to walk away if you can't get the deal you want. It IS that kind of market.

[dapooh1]

I just got a great review at my job (my second year), and I've been assured that I'll have another contract for the next year (and I wasn't the last one hired). I'll do my best to continue impressing my bosses.

With some reassurance on the job side, I'm trying to invest all that I can in my Roth mutual funds while the stocks are down. I figure that every dollar I can save now will probably be worth two a few years from now.

[lucille]

My hubby works for a core component of the government. That feels much more recession-proof than when we both worked in tech during the tech bubble burst. If your looking for a job, working for the fed might have fewer bumps in it right now.

What I did during the last nasty downturn and lousy job market? I moved back in with my parents and went back to college. I was young enough to get away with it back then.

Right now were cutting our driving down. Were using more meal stretchers like lentils, beans, ground turkey and make just about everything ourselves. Were planning a much larger garden than last year with the intent of freezing or canning what we can't eat over the summer months. I couldn't believe how much our garden cut our grocery bills last summer during the peak months.
I bought 75# of flour. The price is predicted to go up again over the summer and we try to make all of our breads and baked goods ourselves. It also helps us cut down on carbs if you have to go to the trouble to make it rather than buy it.

[Ginger]

Increase savings

No more eating out

Bring lunch to work

Reduce utilities but this is a losing battle

Sign up with ShareDC.org to but our grocery bill down

[MSMomsmoney]

Refinanced my home. Went from a first with 5.5% fixed 30 year, and a second at 5.99% for 20 years to 4.625% at 15 years.

Save, and build my emergency and car fund.

No new debt.

Take care of all health issues I can.

[Xin Lu]

I wrote a post about this a while ago:
http://baglady.dreamhosters.com/2008...n-a-recession/

and here is something my company's founder said about the current recessions and recessions in the past:
http://baglady.dreamhosters.com/2008...-do-your-best/

[jdp]

Originally Posted by Xin Lu

I wrote a post about this a while ago:
http://baglady.dreamhosters.com/2008...n-a-recession/

and here is something my company's founder said about the current recessions and recessions in the past:
http://baglady.dreamhosters.com/2008...-do-your-best/

Thanks for sharing those. Read both.

? though - if you had investments but no cash would you cash in to be able to take advantage of the 'deals' one can get if they have cash?

[Xin Lu]

Originally Posted by jdp

Thanks for sharing those. Read both.

? though - if you had investments but no cash would you cash in to be able to take advantage of the 'deals' one can get if they have cash?

Personally I wouldn't sell my investments at a low to buy something else at a low. That just seems silly. A couple of my colleagues liquidated their portfolios last week and now they're regretting it. Though I do think selling investments that has underperformed consistently to take advantage of deals is a good idea. You can get a tax write off for the losses and free up some money to invest in better things. Then again, it is hard to predict where things will go.