Contingency plans as economy changes

[Cedarman]

When gas prices rose, many people made changes in their lifestyle to lessen the impact.  Now that the economy is headed to who knows where, what changes are you making to make sure you make it to the other side? 

If we spend less it will cause the economy to head down, but we will be protecting ourselves.  If we spend more, we may jeapordize out personal economic health.  Catch-22?

Bigger gardens? Sack lunches?  Put off buying car? 

If you are self employed, are you advertising more? 

We as Americans are in control of our destiny, what will we do?

[WDH]

This is an excellent question, one that I have been pondering.  I am focusing on getting back to basics.  Stay home more, build some more furniture, saw some more lumber and inventory it, and grow food in the garden and can it. 

I am not sure that spending our way out of this is the way to go. 

[DanG]

Good question, Cedarman!  We are facing a challenging time to be sure.  Unemployment may continue to rise, suggesting that we should spend more in order to create jobs, while the prospect of inflation is telling us to squirrel away some funds.

Each individual must look at their own situation closely and honestly, to determine the safest gamble.  Whatever you do is a gamble, and folks need to face that fact.  We have a generation coming along that is banking on the assumption that they are all going to be rich, and won't have any worries.  I hope this downturn will wake them up.

My own situation is a bit different than most on here.  I'm "retired on a fixed income" so unless I go back to work, what I have is what I will have.  That being the case, inflation is the scary part for me.  I'm right comfy at the moment, but I could be in a real pinch in a year or two.  The only way I can cut my lifestyle any deeper is to quit smoking and drinking, which I need to do anyway.   Linda and I have discussed things and concluded that we should invest in repairing and upgrading the sawmill operation and put it back into service.  It has never made very much money for us, but it can bring in enough to see us through, hopefully.

[Sprucegum]

About this time last year an oportunity came for me to jump out of my rut and display some of my dormant skills. I am a jack-of-all-trades-master-of-none but my present employer knew me only as a welder. Now I am busy doing all manner of odd jobs as well as acting as general contractor on some larger projects. The welders are being hit with layoffs.

[Qweaver]

Two years ago I told all of my friends and relatives (and anyone else who would listen) to be very wary of the markets and especially mutual funds.  I got completely out of the market and into CDs and money market...  not a great way to make money but a great way to keep from losing it.  But I'm old and retired and my view may have been different if I was younger.  For those of us who have not had the big losses, this is an opportunity to buy vehicles and other large items at great prices and help the economy in the process.
Many of my family and friends have lost over 50% in their 401k and IRA accounts.  It's sad to see so many retired people have to go back to work or postpone retirement because of this mess.  
I agree with WDH, history does not show that huge government spending programs are a good cure for economic problems.

[Tom Sawyer]

Advertising more is something that I have been contemplating for a few months now.  How do you know when a dollar spent on advertising brings in business?  I would happily spend $500 a month more on advertising if it increased my business by $1000, but if it doesn't I will go broke pretty quick!  So many options it is hard to know which to take

Tom

[Modat22]

My bread and butter is based on building or renovating big buildings and doing the electrical design work. Work is slowing down and many projects are cancelled. So if it falls apart I recon I'll be praying more.

[Warbird]

"Contingency plans as economy changes" - guns and lots of ammunition. 

[scgargoyle]

We are both employed, and doing well, but we're acting as if bad times have already hit us. All of the debts (except the house) are paid off, and we don't buy anything that we don't NEED. I'm gearing up towards building on our rural property, and buying things related to that, but I'm really bargain hunting. I'm also gradually building up a year's supply of food, and the aforementioned ammo. I also got a lot of my money out of a particularly shaky bank, and am reinvesting in several different strategies, hoping that at least one of them will still be worth something.

[ErikC]

  Great topic cedarman. We are all going to have to do something, just bringing it up so it gets a little thought is a great start. I don't think we are going to spend our way out of this, if the government can put hundreds of billions out there with little to no effect, what is our little bit going to do? Wait we are trying to spend our way out of it already! Whether we want to individually or not.
  I'd focus on spending only where it can diversify your income a little, or on something that may save money for you in the long run. That way being better prepared for what comes down the pike. The businesses that survive are always the most diverse with the least debt. That way there is probably always something to do that will make a little income, and if there isn't the bank won't come calling right off. In a tight economy, advertising in a reasonable way is probably money well spent. Ads in the local paper, signs around town, are pretty cheap and effective. TV or radio are more expensive but reach the broadest audience, but I don't know how well that would work, as I haven't used either.

"Contingency plans as economy changes" - guns and lots of ammunition. 

Well that's too obvious Warbird

We are both employed, and doing well, but we're acting as if bad times have already hit us. All of the debts (except the house) are paid off, and we don't buy anything that we don't NEED. I'm gearing up towards building on our rural property, and buying things related to that, but I'm really bargain hunting.

  We are pretty much in the midst of the same strategy, except we already live on the rural property. The dogs ain't gettin' many leftovers these days.

[routestep]

I have some iron and some lead. Now I have a little gold. It tends to fluctuate so I don't have much and at the moment there is nothing I know that I can buy with it. Maybe just an inflation hedge.

[GF]

Larger garden to put up more vegtables, already have pork processed from a friend, house and land paid for, spend less money, have plenty of ammo, then sit and wait it out.

[Engineer]

Selling things I've bought in the past and don't want or need.

Stockpiling firewood.

Clearing some land, putting in a big garden this spring.  Raising chickens, going in on shares with a friend who will be raising some pigs and a steer or two.

Paying off all bills except the mortgage and cutting that down as well.

Banking with locally owned, stable bank. 

Not buying anything we don't have to have.

Keeping older car and truck maintained.

Putting in a root cellar.

Putting solar panels on the roof of the house (maybe).

Doing a major business marketing push, especially since the oher surveyors and engineers in the area are laying off people or closing up shop. 

Diversifying my skills - I'm running my chainsaw and sawmill more, learning to weld, and have already been offered a job by a contractor I know to do finish carpentry if the engineering business tanks.  He said I have more tools than he does anyway.     Also trying to learn more about small engine repair.  My brother is learning welding and auto mechanics (he's an IT slave for a big plastics company) so that if things go south for him, he can fix cars that people are hanging onto because they can't afford new ones.

I see a lot of people trying to become more self-sufficient, maybe not to the point of true homesteading, but closer than they were five years ago.  I also see a lot of others just trying to ride it out.   We are going to do both.

[fishpharmer]

I especially like this topic.

Eat more fish and beef
and deer.

Plant a garden big enough to sell some surplus.

Being real conservative about buying anything.  Need a new round baler and  15 foot bushhog.  May pickup those if the prices come down some. No hurry since price of cows have come down too.

Not sure yet if I saved money by building my own sawmill.  Hoping to pickup a few local sawing jobs in the neighborhood.

I know in the last year I have been driving the  little four banger truck instead of the one ton diesel truck.  That helps alot.

My wife insists on buying can drinks, she gets the drink, I get the cans.  You would be amazed how much that adds up.

I really want to install a solar water heater to lower the propane expenses.

Boil your tea leaves twice as my depression era MIL says.

[pigman]

Plans.   I don't have any plans, I will just keep on doing the same things I have always done. I have never borrowed money for anything except for business things that I thought would make me more money.  Since I am slowing up on my business endeavors, I have no intention of taking on any debt. As for the rest of you, I think that you need to go out and spend like there is no tomorrow so the economy will recover.

[tcsmpsi]

I've never been interested in accumulating money, other than what I have to and a few bucks stuck back for emergency.  I've done lots of work, lots of diverse enterprises.  I ain't afraid of none of it, nor what may come down the pike, with or without.  I've made it from nothing, more than once, I've lived a prosperous, effective life (not oriented in money), and I'll not change those aspects of it, regardless of what other humans endeavor.

I've always had my own business (almost since I could walk), of one or more categories, and have worked for other concerns, as well.  I have been focused on my own business as primary provider for close to 35 yrs.

Generally, my "investments" have been in my life, those close to me, the business(es), and paid for properties with a solid house and accoutrements.

I've been in this business location going on 20 yrs now.  I've gotten my advertising about as streamlined and effective as I can.  Any more, and it would be financially ineffective.

The last couple of years, we got in to some substantive 'investments' of equipment, etc., seeing this coming.  However, it hit about 3 yrs harder and faster than I had anticipated.  (Best laid plans....)   Business had gone down about the same time, etc., etc.

Summarily, my investments are the stock, tools, equipment and good will I have perpetuated.

My wife works for a major corporation, not 'high up on the ladder', but better than average wages for this area.  Her 'retirement fund' imploded, the corporation has not been giving more than 1-2% annual raises, but have been more stringent and changed quarterly bonuses to tri-mester, and may cut them altogether soon.

We're far from being up to "middle class".  I average 70-80 hrs a week and she averages 60-70 hrs a week on the job.

I'll do whatever I have to.  I have no idea what that might be.  

We work the jobs too much to work gardens, presently.  

I would suggest to anyone (of which there are tens of millions out there) who has credit card debt, to get shed of it now.  Even if it's just quit paying.  They have been nothing but a con game, and the major banks that issue them are getting tens of billions of dollars of ours, and our children's children's children RIGHT NOW.  Most patriotic thing a staunch American citizen could do right now is toss them away and let them wallow in the fecal matter they produced.

Many key economists adamantly agree.

Hopefully, we will begin to reign in all this silly credit bubble consumerism as the People, while banker/financier owned governments continue to attempt to keep it thriving.  

Our day to day life doesn't change much.  Only bones the dog ever gets have always been well cleaned.  

Of course, the firearms' business is pretty questionable at the present.  A lot of folks have done well in recent months in it, but, as I had explained to several,  not to get too hasty or carried away by that.  There is always a cost in doing brisk business.  Sales have been good, but, now it is near impossible to get  a wide variety of selective stock.  Can't sell it if you can't get it.  Most of those who have been in the business a long time, know to be wary of spikes.  Manufacturers running beyond peak to supply, harder on tooling, equipment, etc.   There will be a lot of time and money to produce.  This will make its way up the ladder.  Older distributors are wary of overstocking in such a radical environment.

If one is tuned into firearms and ammunition, I would suggest to get enough to know the weapons of your choice and one's ability with them.  Once that is done, it won't change.  If you need it for its purpose, that ability and a quality piece of machinery will suit itself.
Good training is worth much more than thousands of rounds of ammo and a cache of weapons.

With good, natural weapons training, one can acquire any other weapons which might be necessary.

Once value (gold) was taken away from the dollar, a meltdown is inevitable at some point or another.  
The plan of greed which would create that, is its own nemisis.

Tangible assets, skills, tools and a little property to apply them.

[Ron Wenrich]

I'm not doing anything differently.  All my bills are paid, including the house, and we have about 2 years worth of cash in various accounts that are all tax paid.  

We never did spend lots of money that we didn't have.  Credit cards have always been paid every month.  I have about 2 years worth of firewood cut and split, and plenty of room to make a garden, if I have the ambition.  I don't have any new toys that I want or need.

We could use a new car, but we are waiting to see how the newer cars do with mileage.  We might buy one in the spring or early summer.  We'll take out a loan only if its one of those 0% finance deals.  Whatever we decide will be on the small side.  We never did like the big cars.

I am still putting money into my mutual funds (Roth IRA).  I am doing a monthly investment, so I'm bringing my average cost per share down.  I figure when the market goes back up, I'll have a better chance of getting a better return.  I'm putting any excess cash into CDs at the local bank.  

[beenthere]

Steady course here.
The economy won't come back unless people buy "things". So....its a matter of being part of the problem or part of the solution.  And each has to decide how it can work out for them, and hope it is the right gamble.
I bought a new GM car last month. Hope it helps.

[stumpy]

I agree with Beenthere and if he wants to help even more, I'm willing to do my part and let hime buy me a new car too

[farmerdoug]

No debt here. 

Planting lots of veggies for everyone to plant in their gardens.

If you are buying gold for trade, think silver.  If you come to me wanting a bushel of apples for your family and all you have is an ounce of gold, I guess you will be paying me that ounce unless I am in an mood for making change.  Silver is cheaper and safer to deal with.