500 sats \ 1 reply \ @orthzar 11 Jul 2022 freebie \ on: Plans for coping with a recession? bitcoin
The standard advise is to:
  • Have at least 3 months of income (not just expenses) in savings (fiat or BTC is up to you).
  • Pay down/off your debts (car, house, student loans) as much as you can.
I'd add the following:
  • Get out of any industry which is likely to experience tons of layoffs during a recession (e.g. construction, real estate). But no matter what your job is, assume that you're going to be unemployed sooner than you expect. It's better to be cautious than sorry.
  • Go read Meltdown by Tom Woods to see what happened before and during the last recession. It's a quick read. (https://ia601601.us.archive.org/17/items/WoodsMeltdown/Woods-Meltdown.pdf)
  • Sell stuff you don't use (e.g. that guitar you don't play, those boots you don't wear). Maybe put everything in one room; when you use something, put it in another room; and sell everything that is still in the first room after 1 month. Be willing to sell things for less than market value, because the point is to get rid of stuff, not turn a profit. If you lose your home, it will be very painful if you have to leave possessions behind.
  • Downsize now while you have choices, so you don't have to downsize when you have no choice. For a lot of people that will mean selling your big, overpriced house for a smaller house. Look into van-dwelling; do your homework; many love it, but it's not for everyone. If you lose your job and home, you don't want to have to move into your 1993 Mazda Miata.
  • Attend a Bitcoin meetup and see what advise they have.
  • When unemployment starts rising, people will start dumping their cryptocurrencies (including BTC) to pay rent and buy food. The current dip is, IMO, just the beginning. So please, for the love of God, don't borrow money to buy BTC; pay off any such loans now. Stack sats with humility, not fragility.
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100 sats \ 0 replies \ @nout 11 Jul 2022
I'm not following much on the logic of selling all your stuff ahead of time? What is the logic behind that? In a situation with high inflation you would want to keep the loans and any assets, especially if you have locked low interest rate.
If the fiat is quickly losing buying power, then the last thing you want is to get and hold fiat...
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