Tips for surviving a recession

[myboyburt]

Dump your long distance service. We did this over 10 years ago because we got grumpy about the $$ for the long distance service fees and taxes. Back then we figured we'd save $120.00 in fees and taxes per year alone so I'm assuming the savings is the same or greater now.To call long distance:

• Use prepaid AT&T (or other companies) calling cards. We have the calling card phone # and pin preprogrammed into our home phones so it just takes two button clicks to initiate a long distance call. Cost is less than 3 cents per minute.
• Use SKYPE: Computer to computer is free. Computer to land line is about 2 cents per minute (when you purchase Skype credits - they have other packages which could bring the costs down even more for those who do a lot of long distance calling)
• Use your cell phone if you have a free nights and weekend plan
• Use email, Facebook, MySpace, etc to communicate as an alternative to long distance calling.

[Melody Ranch]

Use the Parks and Camping, exclusively for you and families (some scumwad Politicians sneak in from time to time) facilities located all over the U.S. Investigate a bit and you will be pleasantly surprised where they are and how nice they are....and cheap. There are Marinas too.

[Melody Ranch]

Did I mention that it surely was not the time to spend $800 on Zolatone. It must be love.

[RockStar]

Silverbeauty, you and your husband have your heads screwed on right. Being fellow 'maritimers' we understand exactly where you're coming from. We learned to be frugal from our parents and grandparents and right now, I would trade my stock portfolio for ten acres of hardwood in Lunenburg county in a heartbeat.

Community and neighbours helping neighbours is what's going to get us through this recession, for sure - not the 'experts' on Wall ST. or Bay St..

[Foiled Again]

Watch Suzi Ormand. Follow her advice. Learn that the thrill of buying some new shiny toy lasts for hours or days or weeks - and the payments drag on forever.

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I drive a 2500 Silverado Diesel that if I really baby it gets about 20 mpg. But I live fulltime in my Airstream and have for almost 4 years now.

I chose to sell my house because the maintenance time and costs were killing me. My timing was fantastic, but lucky rather than savvy. I found a campground which is a buy in membership deal, the memberships were very inexpensive and the dues are very low. I do have to move off once every four weeks, and it closes for the winter, but my housing expense is less than $5000 per year.

You may hate the idea of fulltiming and being "homeless" but for the next couple of years it might be the one thing that will save your butt.

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There have been a lot of great ideas posted here - large and small. I'd like to add a few very serious ones:

First - face that 800 lb. gorilla in the room. Sit down and look over your debt, your income, the possibility you could lose your job(s) and especially the state of your housing. If you even think that bankruptcy is a possibility see a lawyer who specializes in the practice and find out how close to the cliff you are, what all of your options are - and if necessary file for it now. Donald Trump did - and as David Letterman pithily observed, you know the economy is bad when the Donald can't make a living off of hookers and gambling. The point is that if bankruptcy is inevitable you might as well do it now as later. You DO start over, burned and bloody it's true, but delaying it will only make it worse.

Next - face that there is no tooth fairy and no magic way out of the mess. There are only three real solutions

1. increase your income
2. trim your spending
3. do both of the above

Involve your whole family in re-thinking (or starting) a budget. Your 13 year old and even your 8 year old should be involved. They will be affected, and it's not your job to raise children - it is your job to raise functional adults. Understanding money, thinking logically and learning to defer gratification are characteristics of functional adults.

Your children should understand that cars and credit cards, and cell phones are not necessities. If they want these things, they need to work for them. In my old neighborhood there was on 13 year old girl who started a business cleaning the interior of cars - she emptied the ash trays, cleaned the mats and carpets, organized the map pockets and windexed the windows. She had over 100 clients and made enough to finance her own car and a substantial part of her tuition to Virginia Tech.

You want to do what is best for your children, but that does NOT necessarily mean giving them everything. If you've got an adult child who is living at home and not contributing - give the alternative "JOB or RECRUITER" - then stick to it. (Even if your child is going to college full time, he or she should be mowing the lawn, doing a big part of the household maintenance - and holding down a job over vacation.

Unused Stuff - somewhere "conspicuous consumption" has turned into hoarding for many of us. The poster who said get rid of what you don't use hit it on the nail! Today isn't a good time to have a yard sale, but all the junk you don't use IS a depreciating asset. A modest amount of cash can be a big help.

NEVER Buy on impulse.

Those are my biggies.

Paula Ford

[94Tri]

Originally Posted by Distantdrummer

I have considered selling a Baby Grand Steinway I don't play, an Airstream I don't use, a dog that don't hunt, music I don't play, books I don't read, booze I'll never drink, art I don't appreciate and clothes I don't wear. Perhaps in time, maybe sooner than later.

Long ago on this forum I read where a former Moderator, a respected venerable one at that, stated that he was an atheist. I recall being surprised and saddened (for him).
Therefore I feel that I should be able to publicly state that I am a Christian.

That is my most secure prep for a coming recession and/or depression. And I think we have not seen anything yet.
Whether you are secular or religious I would recommend reading
Chapter 12 of Luke and the Book of Proverbs.

Believe and obey God ......and he will make sure you have everything you need (not want). Unfortunately, the AS may not be considered a necessity in dire times.

[toastie]

Tips for surviving a recession

DRINK BEER!

[Dear Prudence]

Originally Posted by Distantdrummer

I have considered selling a Baby Grand Steinway I don't play, an Airstream I don't use, music I don't play, books I don't read, booze I'll never drink, art I don't appreciate... maybe sooner than later.

I'll be happy to take any of these items off of your hands.

[FreshAir]

I was born near the end of 'that' depression,1938. Mom and dad were married 7 years then and surviving the depression and even buying a house. My growing up years were WW2 and things were difficult to be had then too. All the 'penny pinching' suggestions already mentioned were our life style and that has carried on to now. I do a silent chuckle when my daughter reminds her boys to turn off Gramma and Gramps lights when they are done in the room they were playing or going potty. Our daughter and son were constantly reminded such when growing up even in good times. I remember my mom at 91, living in a retirement home, wringing out paper towels and draping them in the sink for reuse. She even separated double ply paper towels to get two!! And do you know what?...we made it and we were happy too.
Neil.

[ROBERTSUNRUS]

Hi, we can afford to have a lot of things, but chose not to.

(1.) Remove cable and/or satelite systems. Use an antenna and converter box. We did.

(2.) Use dial up computer service. I hate it, but I hate to pay $50.00 to $100.00 a month for a faster system. I have plenty of time.

(3.) Use free Wifi. Wife's lap top has built-in Wifi, good for camping at some places.

(4.) Fix it yourself, if you can. A neighbor was quoted $9,000.00 to install a wood floor. [mostly labor] I bought the wood, the nailer, the base moulding, and paint Etc. and did it myself for under $1,000.00

(5.) Repair and/or remodel your own trailer, I am. Check my blog.

(6.) Home phone for dial-up service, and basic cell phone for emergencys, no-nonsense calls with free long distance and free roaming for traveling.

(7.) Don't heat or cool the whole house. We have portable heaters and a portable air conditioner for the rooms we use. Heater for the bedroom and A/C for the living room. Close the doors in the rooms that are not occupied.

(8.) "We all just live in a plaster box" Quote from an old friend. Do you really have to have 3,000 [or more] square feet for two people? And for those with acres of land, grow some food. I have a lemon tree.

(9.) Discontinue as many monthly services as possible. You don't need them.

(10.) There are only two choices when it comes to spending your money: "Do I want it?" ------------------ "Do I need it?"

[dukester]

We built a raised garden in a backyard (approx 10x6) which has been an excellent producer. Put some copper strips around it and NO SNAILS which is a huge hassle where we live. We alternate from a summer vegetable crop to a winter one. For just my wife and I, it has turned out to be far more food than I would have ever guessed. And as someone mentioned earlier, nothing beats the taste of garden fresh.

[mrmossyone]

Well ya'll have come up with some really good ideas. I will probably overlap some.
We don't have cable and haven't for the 14 years we've been married except for about three months when my wifes company was paying for it because of roadrunner so she could work from home.

We don't pay for touch tone service, caller i.d., inside wire maintenance service or long distance on our home phone(saves about 12 bucks a month). We have very cheap internet service.

We use a wood burning stove and keep our furnace set on 54. I go to a place where I help cut and stack the wood on my trailor and I haul it home, very cheap. Last time I got 7 chords of wood for 300.00 (that more than lasts all winter (really 1&1/2 winters). If you have a hydraulic splitter you can buy "scraps" (huge sections of good red/white oak that have knots, burls, and knubbs where limbs start) enough to fill a 20 ft flatbed trailor for about 30-50 bucks. You can get about 10-12 chords from it.

We last as long as we can in the summer (get's hot here in summer) with the windows open and ceiling fans blowing. AC on 75-76 when on.

We wash clothes in cold water only and only full loads and hang em on the line when possible.

We use energy saving bulbs in all lights.

I have a lawn and landscape service so I have lots of compost material. We have 5 acres with about an acre in woods (I normally only cut wood from there when some falls or needs trimming or undercutting).

The year before last had about a 1/4 acre garden, last year only a couple of rows but I'm going back to the bigger garden again this year.

I take military showers so my wife can have longer, hotter ones.

I try to stay on the kids about turning off lights and video games.

We watch very, very little TV.

Drive the wife's 4cyl. accord whenever possible and walk the kids to school whenever the weather isn't real bad.

I try to buy as many of our groceries on sale as possible.

We trade clothes throughout the extended family for all the kids. My youngest son is wearing clothes that have been worn by 5 other kids and they're still in good shape. Same with shoes. Younger children really don't care what they wear if they haven't been taught to by parents, as long as they're clean and well taken care of.

We do a lot of free entertainment, mostly in the free great outdoors.

We did the Dave Ramsey Univ. 3 years ago. We have no credit card debt and no car payments. We have a medical savings account to save on insurance (we tough out colds instead of going to doctor, which gives you a stronger immune system). We raised our deductibles on our car insurance to save on that( seems to help you become more aware when driving as well).

We have been keeping our AS camping trips to local state parks.

We hardly ever eat out.
I do all remodeling and maintenance on our house, rental house and barn.
I do all maintenance and most all repair work on our vehicles and the Argosy( the wife's car hasn't needed any repairs just routine maintenance).
The cat has to supplement her diet by catching rodents and birds.

[PizzaChop]

Unfortunately, given the daily pronouncements from our nation's capitol, I am not bullish on the future of the economy.

I think all of the above are good ideas which reflect the hard work, thrift, and industry of a nation founded on freedom and individual liberty.

With 7.5 acres and 8 children, we are constantly exploring ways that we can be self sufficient. We have 12 chickens which produce between 8-12 eggs/day, but the horses don't contribute much (except personal enjoyment and small income for my daughter who gives lessons).

I think the most important aspect is to get out of debt as soon as possible. Debt presumes upon future income (revenues) which, given the current climate and where we seem to be heading, future income may not be something we can count on. (Everyone needs to take a pay cut, they just don't know it yet. Business owners took theirs last year.)

I think that everyone would be wise to prepare for a sort of hyper inflation, usually only associated with 3rd world nations, as a result of the massive infusion of government spending with freshly printed dollars. This will not happen until the economy starts to rebound, but it will happen. (No matter how high you throw a rock in the air, it will eventually return to earth. I don't think most people can comprehend how much debt and future debt we have obligated ourselves, children, and grandchildren to.)

High rates of inflation will be accompanied by high interest rates, which means now is a really good time to lock in a low rate on any long term debt obligations, which can preserve monthly cash flow (which is really what we're all discussing here anyway).

If I had money to invest, I think I would buy gold or invest in commodities right now. While it is true that there are probably some good buys in the market, I think that the federal government's continued intervention in the financial markets makes it extremely difficult to determine winners and losers at this point. While I think saving for the future is wise, I'm not sure where the best place to put it might be at this point.

Lastly, as a business owner, I am committed to remaining small and will avoid any expansion (creation of new jobs) in the near future as there will be no bail outs for me if I fail. I do not care to work even harder than I already am, spend less time with my family, and take on more responsibilities only to be demonized and taxed by the government if I am successful.

Spiritually, I think it is a good time (it's always a good time) to get your house in order. We as a nation have enjoyed over 200 years of freedom and self determination producing a level of prosperity unknown by any other nation in history. I think we're coming to realize that it was never a birthright, but rather the result of hard work, responsible living, and blessings from above (Providence, as our founding fathers referred to Him).

"When times are good, be happy; but when times are bad, consider: God has made the one as well as the other." Eccl 7:14

I'm trying to forget but every time I look at the Sovereign (which is daily on my way out to feed dogs, horses, chickens, ducks), I am reminded of the time, treasure, and effort expended on a project which has never delivered on its promise and frankly, wish I could have it all back, especially the time I spent away from my family working on it so that we could have "family time" camping!

But I am realizing that in times like these, we have so much to be thankful for, and I am learning to be more thankful in many respects than I've ever been.

[xonvldz]

people are like herd animals,so what i try to do is do the opposite of the crowd.the older i get the more i realize how short time is.when employment eventually returns for folks they will spend money once again like drunken sailers.during this time i will still be traveling with my family and focusing on paying debt down as i go.i still have money invested for the long run and as warren buffet put it when people are fearful it is the time to be greedy.i grew up in a house of depression mentality parents who never borrowed money for anything .i was taught the importance of saving money.i just dont want to scrimp and save to ultimately give it all to the government or some nursing home.i intend with good health to spend my share on family memories that we can all enjoy for many years to come.i dont squander money and i dont have some over the top lifestyle and after 911 i dont see this life as some kind of dress rehersal.so with that in mind when people are worring them selves to death i will be traveling with my kids and using my dough to enrich their outlook.as long as they have the work ethic that my parents instilled in me,they will be way above the herd.

[mistral blue]

Originally Posted by FreshAir

I remember my mom at 91, living in a retirement home, wringing out paper towels and draping them in the sink for reuse. She even separated double ply paper towels to get two!! And do you know what?...we made it and we were happy too.
Neil.

I remember Sunday afternoons playing scrabble at the kitchen table with my grammy smoothing out scraps of used, wrinkled tin foil with our thumbs. I still love doing that. Beats polishing an Airstream for me!

[SilverAvion]

Originally Posted by mistral blue

Stockpile food, meds, water, paper products, toiletries, fuel...

Pay off debt.

Stock up on books you want to read in case you get to the point of having to "cancel cable" or having to "barricade yourself in the basement."

Pay off debt.

Get really good camping gear including zero degree sleeping bags, a wind up lantern and little propane stove, etc...

Prepare to be totally independant.

Help others who are less fortunate.

"When you are struggling, and everything seems totally hopeless... that's the time to find somebody else who maybe needs a helping hand even more than you, and give it to them, without expecting a doggone thing in return. That's where the best "dividends" are in farming sometimes." ~ Quote from an unknown farmer

OK, first of all, I agree completely with the "pay of debt" mentality. Always have. In fact, except for a small mortgage, I have no debt at all. I have always been careful, and lived within my own means. despite that, I find myself caught up in this one way roller coaster ride that the greedy people have put us on.

So, playing the devils advocate,...why bother if the entire system is about to fail, causing us to have to live totally independently? wouldnt it make more sense to borrow more, invest that money in durable/transportable commodities (gold,gems, equipment, guns, bullets, etc....)

[mistral blue]

You claim to have little debt but you think that maybe now might be the right time to max your credit cards in order to stockpile "gold, gems, equipment, guns, bullets, etc..." ?

I think that if you put yourself in that position you would be forcing yourself to pray for utter failure. I have NO problem at all with stockpiling the above goods if it's done prudently. Using credit to do so is foolish IMO.

[StevenG]

Originally Posted by wahoonc

Not really cheaper...that is a fallacy. One of the major networks did a special on it a while back. Process and packaged food is usually less expensive per serving than the fresh stuff. As well as being full of unhealthy amounts of sugar and salt. But in the long run fresh stuff should save you money, in that you are healthier so you should need less medicine and medical care.

I always tell people that it may be fine for lab rats...but I am not a lab rat!

Aaron

Perhaps true, but have you ever read the ingredients label on some of that processed stuff? We have quit buying beef at a local supermarket after reading what they put in a simple package of steaks or roasts! It is amazing the chemicals in there...other local supermarket adds nothing. You simply have to wonder what we're putting in our bodies these days.
And we bought our AS to get away from the rat race! Go camping!

[Luminati]

I found this wonderful series of films on YouTube

Depression Cooking with Clara films on YouTube.

Clara, who is 93 years old, recalls recipes from The Great Depression and talks about the struggles and joys that got her family through those difficult times. Her grandson, Christopher Cannucciari, filmed her and presents a wonderful insight into that era. Clara is full-on charming, funny and a joy to watch!

[Lily&Me]

There are an amazing number of helpful suggestions posted here. It seems to me the underlying mantra is "simplify, simplify, simplify" in all areas of life. Keep stepping back until you are down to basic needs.

As a young and financially desperate single mommy for too many years, I became a master at stretching a buck and a chicken. I could teach a class or write a book, were I so inclined to now spend my hard-earned retirement doing so. If we prepare foods from scratch, cut back on animal proteins and portions, etc., food budgets can be very significantly cut. This requires some extra time and planning, but you do whatever you have to when times are hard. Libraries are a free resource for the how-to's, and I especially recall a wonderful cookbook entitled "More With Less".

We urge those who are struggling to get up every day, put one foot ahead of the other and responsibly do what you must to deal with whatever you are facing. Believe that, if you keep yourself on track, everything will eventually work itself out.