How to prepare for the worse...

[daves87rs]

All POLITICS aside (I don't want to hear your reasons why), things are going to get a little bumpy ahead. I understand everyone's version is going to be different for all sorts of reasons. Keep in mind I'm talking about belt tightening here, not some end of the world/over the top approach.

Myself? Continuing to rid myself as much debt as I have left, and keep pouring whatever money I can into our accounts. Late lst year I cut my bills by nearly half, and fixed and "refurbed" some new toys at little to no cost to keep me busy. Even have a few projects I picked up at a good price to keep updating my house, with good friends at the cost of pizza, beer, and some good times. I've been setting up for if things go south, so I'm ready for pretty much whatever is thrown at me...and with a few more bills, even job loss for a while....

I hope they don't screw up the tax returns next year (though I'm prepared for that too), as it will further keep my family with a few more bucks to keep us ready...

What are you guys doing- just in case?

 

[getnpsi]

We move to this house 2 years ago and I still do not know my neighbors . To offer such insignificant things is a Taco Bell Run if they are outside is enough goodwill for the future for bartering and working together. I also agree that working down the debt at double speed is going to benefit everyone family.

 

[HerrStig]

I trust "our leaders" to keep borrowing from the Chinese so watch for the inflation which will result when the Fed runs out of "equity" to continue borrowing against. There are some who say that inflation helps people who owe a lot because what they pay back with is worth less than what they borrowed. You sure don't want an adjustable rate mortgage in those situations. You don't want a lot of debt because wages won't grow fast enough to keep pace but if you put everything in cash the value of THAT can drop in a hurry. If you can find a nice house and get a low fixed rate mortgage, not a bad idea, but the cost of other things you need going up due to inflation may eat up the money you are going to pay that mortgage with. In times of high inflation, government can nickel and dime your Social Security by pretending "we can't afford" the cost of living adjustments. You can't keep borrowing money from the Chinese forever to pay "entitlements" to people who stream over the border without having a BAD effect on the dollar based assets. As an aside, "taxing the rich" means the "rich" pass through the costs of PAYING those taxes to others lower in the food chain. I'm not "rich" but my taxes will go up in January unless a deal is done and my hourly rate will go UP to compensate. I expect my taxes to go UP, deal or NO deal, come to think of it.

 

[Drew99GT]

Saving and getting out of debt is a no brainer. I take "preparing for the worse" to mean prepping (zombie apocalypse type stuff), which is a bit ridiculous IMO.

 

[Bottom_Feeder]

Nothing feels as good as getting out of debt, or at least finally paying off a large sum of money once owed. NOTHING.

I've knuckled down and I should be completely out of debt for the first time in about 20 years in the coming year. I don't even remember what it feels like to not have that monkey on my back.

 

[daves87rs]

Originally Posted By: Drew99GT
Saving and getting out of debt is a no brainer. I take "preparing for the worse" to mean prepping (zombie apocalypse type stuff), which is a bit ridiculous IMO.



You would think Drew, you would think....


And it never hurts to prepare for the zombies...

 

[caravanmike]

Originally Posted By: daves87rs

What are you guys doing- just in case?


voluntarily lowering lifestyle and status.

becoming more alert.

trying to think ahead and employ strategy.

having emergency savings.

 

[daves87rs]

Originally Posted By: HerrStig
I trust "our leaders" to keep borrowing from the Chinese so watch for the inflation which will result when the Fed runs out of "equity" to continue borrowing against. There are some who say that inflation helps people who owe a lot because what they pay back with is worth less than what they borrowed. You sure don't want an adjustable rate mortgage in those situations. You don't want a lot of debt because wages won't grow fast enough to keep pace but if you put everything in cash the value of THAT can drop in a hurry. If you can find a nice house and get a low fixed rate mortgage, not a bad idea, but the cost of other things you need going up due to inflation may eat up the money you are going to pay that mortgage with. In times of high inflation, government can nickel and dime your Social Security by pretending "we can't afford" the cost of living adjustments. You can't keep borrowing money from the Chinese forever to pay "entitlements" to people who stream over the border without having a BAD effect on the dollar based assets. As an aside, "taxing the rich" means the "rich" pass through the costs of PAYING those taxes to others lower in the food chain. I'm not "rich" but my taxes will go up in January unless a deal is done and my hourly rate will go UP to compensate. I expect my taxes to go UP, deal or NO deal, come to think of it.



We aleady know this stuff (most of us, anyways. But what are YOU going to do about it?

 

[daves87rs]

Originally Posted By: getnpsi
We move to this house 2 years ago and I still do not know my neighbors . To offer such insignificant things is a Taco Bell Run if they are outside is enough goodwill for the future for bartering and working together. I also agree that working down the debt at double speed is going to benefit everyone family.


Price of making friends is worth the costs...

 

[Burt]

I believe that big time inflation is inevitable and about 40 percent of the population does not remember what it is like to live with 12 percent apr and 18 percent mortgages.

Seems to me that real estate, gold and Inflation indexed treasuries are the few places of refuge

 

[Kruse]

Originally Posted By: daves87rs

What are you guys doing- just in case?


I live on 30 acres and we raise our own beef. I just might increase the size of the garden this year, just in case. And if it gets really bad, the local deer population will be thinned without having the proper tags attached to their legs....

 

[Turk]

Good topic.

Already done:

- Many paths of income in many types of stocks, bonds & REITs.

- Large cash funds in a few different places, along with one within walking distance. Cash & bartering stuff at home.

- Several types of weapons with lots of ammo.

- Plenty of batteries, flashlights, candles, lanterns, propane tanks + no less than 20 gallons of gas in the garage w/lots of stabilizer.

- Plenty of food, water, hi-energy foods. Big gardens with our own seeds.

- Married a woman who grew up with no lights, no running water, fled Cambodia from Pol Pot, lived in the Jungle for 4 months by herself, lived in a Death Camp given 1 Tablespoon of Rice per Week, makes food with NOTHING wasted. Is comfortable resilient & content with nothing.

I'll be fine.

 

[DBMaster]

Many good ideas here. Also, keep enough tranquilizers around for a hasty departure - if you're like me and own no guns.

 

[Drew99GT]

Originally Posted By: DBMaster
Many good ideas here. Also, keep enough tranquilizers around for a hasty departure - if you're like me and own no guns.


Now that marijuana is legal in CO, I might keep a stash instead of cyanide pills. Just in case the apocalypse ends up being a fluke.

 

[d00df00d]

I plan to retreat into a nuclear bunker with automated machine gun turrets outside. They'll be set to shoot everyone who approaches just in case, because you never know who's going to want to loot your place once the stuff hits the fan. Then, I'm going to seal off all the entrances and exits with explosives, and spend the rest of my short life watching camera feeds of the apocalypse in a drug-addled haze until my oxygen supply runs out or the Illuminati drop a bunker buster on me.

My wife just wants to pay off our debt and funnel as much money as possible into our 401K and house fund, while keeping an ear to the ground for jobs abroad in case that becomes the best option. She obviously has no appreciation of the inevitability of the coming descent into chaos. I'm working on it, though; I'm sure she'll come around.

 

[NMBurb02]

Originally Posted By: Turk
Good topic.

Already done:

- Many paths of income in many types of stocks, bonds & REITs.

- Large cash funds in a few different places, along with one within walking distance. Cash & bartering stuff at home.

- Several types of weapons with lots of ammo.

- Plenty of batteries, flashlights, candles, lanterns, propane tanks + no less than 20 gallons of gas in the garage w/lots of stabilizer.

- Plenty of food, water, hi-energy foods. Big gardens with our own seeds.

- Married a woman who grew up with no lights, no running water, fled Cambodia from Pol Pot, lived in the Jungle for 4 months by herself, lived in a Death Camp given 1 Tablespoon of Rice per Week, makes food with NOTHING wasted. Is comfortable resilient & content with nothing.

I'll be fine.

Sounds like a good plan, with the exception of the bond investments. With interest rates so low, the only place they have to go is up, and bond value changes are inverse to interest rate changes, so rising interest rates means lower bond values. Also, the low returns on bonds may not be able to keep up with inflation. Stocks and REIT are good insulators against inflation. Costs go up = prices go up = profits go up (if the company can remain competitive).

With such a good woman by your side, any coming troubles will seem like nothing. I bet she wonders what all the fuss is about, with all she has gone through and survived.

 

[Sayjac]

Originally Posted By: d00df00d
I plan to retreat into a nuclear bunker with automated machine gun turrets outside. They'll be set to shoot everyone who approaches just in case, because you never know who's going to want to loot your place once the stuff hits the fan. Then, I'm going to seal off all the entrances and exits with explosives, and spend the rest of my short life watching camera feeds of the apocalypse in a drug-addled haze until my oxygen supply runs out or the Illuminati drop a bunker buster on me.

My wife just wants to pay off our debt and funnel as much money as possible into our 401K and house fund, while keeping an ear to the ground for jobs abroad in case that becomes the best option. She obviously has no appreciation of the inevitability of the coming descent into chaos. I'm working on it, though; I'm sure she'll come around.

Thanks dood I needed that. Laughing so hard I'm crying.

I might follow your plan, but I'm not sure how to locate a nuclear bunker equipped like that. Got any tips?

 

[Vikas]

If I wanted financial advice, I will be visiting BobIsTheFinanceGuy forum. But then BogleHeads is pretty staid and boring place

 

[Azeem]

My wife and I feel lucky being a young couple not having to pay neither mortgage or car payments(we drive below average vehicles i.e Forenza and Sunfire),we actually can't be more frugal due to the fact that she is in school and I'm soon to be after she gets her education so what we are making now,I work full time and she does part time as well, is just enough hence I don't know what we will do if the worse happens and I don't have any advice for anybody because I can say I know no better than anyone here

.

Only Lord Knows what's it's gonna be in the future.

 

[andyd]

I am contemplating keeping 100 lbs of flour rice and beans on hand.