How do we prepare for the coming financial crash?

[AgainstAllOdds]

Why do you give a shit?

According to your intro post, you have a failing business, are 18, and in college.

Preparing for "the coming financial crash" when you don't have cash, assets, or a business is probably the dumbest use of your time and brain capacity.

Find a need. Fill that need. Make money. Then worry whether demand for your product/service will change with "a crash" once you actually have something to worry about.

Until then you're just bullshitting and getting stressed over your own misdirection.

 

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[Scot]

Agreeing with @AgainstAllOdds and also that Gurus sell using fear and scarcity. I don't give a damn about a recession. Why?
You've read MJ's book right..?

If you live your life with a Fastlane mindset you are recession proof.

If anything, most of us should be praying for a recession. Some of the worlds richest people made their money and opportunity during financial crisis and economic lows.

When everyone is selling, you better be buying.

I wish I wasn't a broke 19 year old during the RE bubble burst in 2008. In my home town, it was ground zero for the bubble. My city was the "fastest growing city" for a couple years during the boom. Contractors were building Spec houses left and right. And they all went years, foreclosed and vacant after the burst. Houses originally valued at $3-500,000 were on the market for $40-50,000 with no bites.

In this example, do you think you should panic, or find a way to buy these Firesale houses?

What happens during a recession? People don't buy houses, they rent. If you pick up a few houses, you can RENT them to people who panic in the recession.


At the end of the day, you are recession proof in college. My university town, you never knew there was a recession. 18-22 year olds with financial aid and parents money, there isn't a lack of cash flow.

But on the really off chance there is a recession soon, get ready to take advantage of the opportunity.

 

[G-Man]

If you live your life with a Fastlane mindset you are recession proof.

This reminds me of a mindset story:

I'm driving down the road with my wife and baby boy on a sunny Saturday afternoon, on our way to lunch at the best Thai restaurant in DFW. I'd had a good week at work, was feeling pretty invincible and in high spirits because of the warm sun and impending feast of nam tok pork and sticky rice.

Driving along 635, we passed a billboard for the Powerball jackpot showing over $400 million. Thinking it would be a fun way to pass the next 15 minutes of the drive by talking about our hopes and dreams, I asked my wife: "What would you do with 400 million dollars?" Anticipating her answer, I'm thinking about driving sports cars down the coast of Adriatic, living barefoot in a shack on my private island, the look on the local preacher's face when I tell him the church's mortgage is paid, and buying my parents a house on the gulf coast.

Then comes Mrs. G-man's answer: "What would I do with 400 million dollars? I'd build a bunker"
Me: You'd build a damn bunker? 400 million dollars and you become a mole?
Mrs: Yeah, with all that money, you could make sure you were safe in the apocalypse.
Me: So, with 400 million dollars, you plan to live like an Armageddon refugee?
Mrs: I guess so. Stop making fun of me!

I have a lot of respect for my wife, she's very frugal and responsible, and it's a product of growing up in poverty and having to fend for herself early in life. That said, we live more abundantly now than how she would with unlimited resources. It makes me think about the importance of an abundance mindset. People with an abundance mindset find a way to make something out of nothing in lean times, and make even more out of what they've got in fat times. People with a scarcity mindset have scarcity even in times of abundance.

 

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[MidwestLandlord]

I doubled my net worth in 2008, thanks to inventory appreciation on the product I sell.

Also, since I sell a price sensitive product, people seek me out when times are bad. Gross revenue wise, 2008 & 2009 were our best years in our 35 years of business.

Recession? Bring it! I'm ready!

 

[MJ DeMarco]

Hey guys, I don't own a boat and really don't see owning one in the near future, but how should I prepare if this non-existent boat hits an iceberg and start sinking?

Why do you give a shit?

According to your intro post, you have a failing business, are 18, and in college.

Preparing for "the coming financial crash" when you don't have cash, assets, or a business is probably the dumbest use of your time and brain capacity.

Find a need. Fill that need. Make money. Then worry whether demand for your product/service will change with "a crash" once you actually have something to worry about.

Until then you're just bullshitting and getting stressed over your own misdirection.

An AMEN, followed by featured.

 

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[lowtek]

I was in grad school in 2008, so the recession didn't affect me. It won't affect you either, in university. If you're really worried about hyper inflation or something, just make sure you've got a couple weeks of food on deck so you don't starve to death.

Reality is that you do the same thing to prepare for a recession as you do a boom - get your a$$ in gear and start taking action.

As long as it's not "the end of the world as we know it", money is going to change hands - that means you just gotta catch it. A recession doesn't mean nobody spends money, it just means that they spend less of it and you have to try harder to convince them to give it to you.

Here's an idea for you: learn how to repair smart phones. In a recession people will happily pay $50 to repair a broken phone, rather than buy a new one for $300+

Now go forth, young grasshopper, and prepare for the recession.

 

[MKHB]

So I've been hearing a lot of talk from the 'gurus' like Grant Cardone, Gary Vaynerchuk and Tony Robbins as well as some guys like Peter Schiff that there is another recession coming.

Even if there won't be a financial crash coming any time soon it's still pretty smart to learn how to get prepared for one. Unfortunately most of the solutions I find are for Americans.

How can non-Americans (perhaps specifically people in the UK ) who are under the age of 21, have no money or any idea in investing into stock markets and currently in university prepare for this crash? What are your suggestions? And how did some of you guys handle the last recession?

Any reading material or external references relating to this would be appreciated. I don't expect to find 'the answer', just want to learn more. Thanks guys!

Tip#1 Stop taking advice from gurus sell info as a major part of their income; bad news sells much better than good, therefore....

Tip#2 Don't attempt to time financial cycles, unless your Cleo.

Tip#3 Buy quality real estate in areas with job growth, good demographic trends, sunny weather, limited supply, onerous gov't regulations and high barriers to entry - Southern California.

Tip #4 Buy speculative real estate value-add/commercial/MF in "affordable" pro growth tech and Panamax centers that will see positive demographic trends and job growth. Scottdale, Savannah, Columbus OH, Newport News, Tampa/Orlando, Salt Lake, KC etc.

Tip #5 Buy/Option undervalued remote land in stable, temperate, remote areas that will benefit from coming coworking/tele-work trends. US southwest, Western FL, Baja, Costa Rica....

Tip #6 Invest in education/companies/hard assets that benefit from medical MJ, blockchain, data storage, Iot, AI, lifescience, e-commerce.

Tip#7 Ignore people like me who give free advice; you get what you pay for.

 

[G-Man]

Gurus are full of sh!te, they just want you to buy their stuff by using fear and scarcity, just keep working on your fastlane.

This ^^ There are folks with ironically fastlane businesses telling others to put all their money in silver coins, build bunkers, and withdraw from civilization.

Don't get me wrong, I've always got a closet full of booze... just being responsible

 

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[jlwilliams]

A few years ago there was a news story about just how far this mindset can take someone. True story. Really happened, re told to the best of my memory.

An old man who had been living in a shack in the desert died. He died alone, in his hovel, in the desert where he had been living alone eating crap canned food and whatever small animals he could trap. When they tore down his shack they found over three million U.S. dollars worth of gold coins. That's right, he was rich. He had a net worth over $3M and it was all liquid enough that he could have done anything with it on any day he wanted to. He chose to live like a feral dog in the middle of a country that is full of opportunity, full of abundance, full of LIFE. The few people who knew him, ranchers who owned land near by, outdoorsmen who traveled in his area, said he was a quiet but friendly man who .... wait for it..... would talk about the "inevitable" economic and social Armageddon. At some point in his life he had been productive, but he let prophecies of doom chase him into retreat. He retreated to a life of insignificance in a shack in the desert.

The moral of the story is clear.

Again, I didn't make this up. This was within the last 5 years or so in the American south west.

Don't be that guy. Create something. Create anything. Make money, use the money to live a life. The best thing you can do in a good economy, a bad economy or a changing economy is to keep moving forward and STOP LISTENING to doomsday gloom Sayers.

 

[GPM]

Make yourself valuable. Learn how to give people what they want. Learn how to be able to learn. Don't ever say "I don't know how to do that". Live within your means.

Stack precious metals, guns and ammo, and lots of booze for trading...

 

[MidwestLandlord]

You're one of those lucky bastards that sell "inferior goods" my freshman econ professor always talked about.

Dude was like a million years old and used to say "Recession can be a good thing if you're in the business of bologna and Bud Light"

Seriously, I want a recession. If I got to repeat 2008/2009 with my current ownership level? (i owned only 5% then)

Oh my.

 

[Raoul Duke]

So I've been hearing a lot of talk from the 'gurus' like Grant Cardone, Gary Vaynerchuk and Tony Robbins as well as some guys like Peter Schiff that there is another recession coming.

Even if there won't be a financial crash coming any time soon it's still pretty smart to learn how to get prepared for one. Unfortunately most of the solutions I find are for Americans.

How can non-Americans (perhaps specifically people in the UK ) who are under the age of 21, have no money or any idea in investing into stock markets and currently in university prepare for this crash? What are your suggestions? And how did some of you guys handle the last recession?

Any reading material or external references relating to this would be appreciated. I don't expect to find 'the answer', just want to learn more. Thanks guys!

Whatever you are currently doing now....

do this

 

[MidwestLandlord]

I wouldn't really worry about a recession (deflationary spiral)

Stuff just gets cheaper.

It's inflationary pressures i'm more concerned with. Venezuela style hyper inflation would suck.

With the amount of money in the system, it's possible.

 

[G-Man]

I doubled my net worth in 2008, thanks to inventory appreciation on the product I sell.

Also, since I sell a price sensitive product, people seek me out when times are bad. Gross revenue wise, 2008 & 2009 were our best years in our 35 years of business.

Recession? Bring it! I'm ready!

You're one of those lucky bastards that sell "inferior goods" my freshman econ professor always talked about.

Dude was like a million years old and used to say "Recession can be a good thing if you're in the business of bologna and Bud Light"

 

[c_morris]

Gurus are full of sh!te, they just want you to buy their stuff by using fear and scarcity, just keep working on your fastlane.

The thing with financial markets is they are cyclical, so they are bound to be right ..........eventually, and they will be the 1st ones touting how their prediction was correct when it does happen.

 

[G-Man]

Seriously, I want a recession. If I got to repeat 2008/2009 with my current ownership level? (i owned only 5% then)

I won't go so far as to say I want a recession (with all the pain and suffering and whatnot), but given that most of my net worth is in cash, and the rest is in government receivables, I'd be lying if I said I hadn't thought "damn, would be great if the bottom dropped out of the RE market so I can buy a bunch of shit"

 

[GatsbyMag]

This is perhaps the best thread I've ever made. I love the discussion that's occurred here. HUGE THANK YOU to @AgainstAllOdds and @Scot for the fabulous answers. Especially @againstallods for the strong reminder, I already knew it but a weaker side of me took over very briefly. I'm going to continue to keep focused.

And thanks for your highly informative contribution to this discussion @RazorCut @Everyman @masterneme @G-Man @cmor16 @MidwestLandlord @WASP @PeterCastle Much appreciated!

I'm young and naive but I listen. Thanks again TMF !

 

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[G-Man]

An old man who had been living in a shack in the desert died. He died alone, in his hovel, in the desert where he had been living alone eating crap canned food and whatever small animals he could trap. When they tore down his shack they found over three million U.S. dollars worth of gold coins.

It sort of reminds me of MJ's analysis of the slowlane retirement plan: You put all your money in the stock market then hope that it doesn't happen to crash when you're 65. You build a shack/bunker in the wilderness, then hope that isn't the place the first nuke lands or the first infected monkey gets loose, and in the meantime your life passes you by.

Fastlane lesson: Live your life and just try to avoid H-bombs and angry primates

 

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[Everyman]

How can non-Americans (perhaps specifically people in the UK ) who are under the age of 21, have no money or any idea in investing into stock markets and currently in university prepare for this crash? What are your suggestions? And how did some of you guys handle the last recession?

Any reading material or external references relating to this would be appreciated. I don't expect to find 'the answer', just want to learn more. Thanks guys!

Invest in yourself. Have you read "The count of Monte Cristo"? Read it. Watch the movie if you can (version with Jim). I don't have a crystal ball but if anything happens and you lose everything (let's assume this worst-case scenario you are probably afraid of) - then what you will have is your bear hands and what you have in between your ears. I know it is broad but this forum is for the people looking to excel.

I think currently the UK needs to build 300,000 homes per year just to keep up with demand and that is just not happening and will not happen anytime soon. Supply and demand means bricks and mortar and a safe bet.

I will contradict here. Everything is always in short supply. People are more and more dependent on social welfare - how can they produce anything of value to exchange for other goods/services (e.g. homes) if they don't do anything? One thing that is keeping it altogether is money printers...

I will get back to this post with links and more proof later but the question is excellent. And one answer (question):

- You don't control the market situation anyway, do you? So you should work and take action as usual but be smart about it - this forum is a perfect place for it.

 

[G-Man]

It's inflationary pressures i'm more concerned with. Venezuela style hyper inflation would suck.

I honestly think US inflation is probably way higher than stated. I think the BLS is working some kind of alchemy with substitution,... but then I get into the kind of doom and gloom conspiracy theories that would end with spending 400 million to build an underground bunker

 

[GoodluckChuck]

A few years ago it was the right wing conservatives talking about the impending doom brought on by a liberal government. They were all buying tons of food and ammo and calling themselves preppers. Now that Trump is in office and Republicans are taking control of the government it's the liberals stocking up for the coming crisis.

Interesting how the zeitgeist shifts. There's always someone worried about the coming crash. Every once in a while they are right.

I keep some beans and rice in the closet with some water and a gun for self defense. Makes me feel better in case of any kind of disaster. If the power goes off or something I won't be worried about making skrilla as much as protecting my family.

Besides that I'll be looking for a way to help everyone around me, make myself valuable. Lord knows help would be needed.

Oh, and acquiring property as much as I can.

 

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[Waspy]

Why do you give a shit?

According to your intro post, you have a failing business, are 18, and in college.

Preparing for "the coming financial crash" when you don't have cash, assets, or a business is probably the dumbest use of your time and brain capacity.

Find a need. Fill that need. Make money. Then worry whether demand for your product/service will change with "a crash" once you actually have something to worry about.

Until then you're just bullshitting and getting stressed over your own misdirection.

Strong this.

So much truth it hurts.

 

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[PedroG]

Where have you been hearing about these so called gurus talking about a recession coming? Do you have any sources you can share?

Peter Schiff is a good guy to listen to. He and other Austrian economists predicted the housing collapse many years before it happened.

 

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[RazorCut]

I will contradict here. Everything is always in short supply. People are more and more dependent on social welfare - how can they produce anything of value to exchange for other goods/services (e.g. homes) if they don't do anything? One thing that is keeping it altogether is money printers...

I don't understand your statement. By the very nature of an economy everything is not always in short supply. Where there is a demand people will fill it. It's what's called competition. Recessions come and recessions go. It's all a cycle. Looking at the past gives you a good insight into the future. During a recession the rich get richer and the poor poorer. One of the ways the rich get richer is investment in property when prices are low.

If there is some conspiracy of an off the charts recession that totally uproots our modern economy then I guess the best advice is to stock up on water and canned foods and wait for it all to go tits up.

 

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[masterneme]

This ^^ There are folks with ironically fastlane businesses telling others to put all their money in silver coins, build bunkers, and withdraw from civilization.

Don't get me wrong, I've always got a closet full of booze... just being responsible

Exactly, one of the "gurus" mentioned charges 5k for a weekend seminar and hundreds go to receive the same info you can get on many 9.99$ books. And about money, well, he sells the same crap all the slowlaners preach.

I know other guys involved in Internet Marketing that charge 10k a seat for a weekend seminar and they brag about how much money they make. Then you realize they would make 0$ if it wasn't for those events.

It makes me feel kinda angry because I was as ignorant as those poor bastards listening to these people. And I don't think there is anything else I hate more than wasting time.

The funny thing is that you can see the truth when they say "you become what you focus on". OP, if you focus on being prepared for the next crash you won't be on the right state of mind to make your fastlane a reality because you won't be looking for problems/needs that you can create a solution for.

MJ DeMarco said it on a video, you can't win by playing defense.

 

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[biggeemac]

Yeah, I don't give a shit what the gurus say anymore. I lost a lot of money and time chasing gurus and their predictions and bla bla bla. I bought a house, and now, I let the state that I live in use 4 of my bedrooms. I make more on one room than most people make renting 6 houses. You have to figure out how to create something that people will pay a lot of money for, and ignore the Internet babble. How many times in history has your countries society went to complete despair? Unless something is very noticeably underway, then get to work. Good luck.

 

[WJK]

I been through several recessions over the years. We are currently in the middle of one where I live here in Alaska, due to the collapse of the oil market. I've adjusted my day-to-day business practices to factor in that reality.
My general formula for surviving down-turn cycles is to live a very conservative life style -- no matter what part of the economic cycle we're experiencing. First, and foremost, is to be as debt free as possible. Coupled that discipline with a good budgeting plan, that holds down both reoccurring costs and all other living costs. It's boring, but true. My Grandma's advice is still right-on.

 

[GatsbyMag]

I was in grad school in 2008, so the recession didn't affect me. It won't affect you either, in university. If you're really worried about hyper inflation or something, just make sure you've got a couple weeks of food on deck so you don't starve to death.

Reality is that you do the same thing to prepare for a recession as you do a boom - get your a$$ in gear and start taking action.

As long as it's not "the end of the world as we know it", money is going to change hands - that means you just gotta catch it. A recession doesn't mean nobody spends money, it just means that they spend less of it and you have to try harder to convince them to give it to you.

Here's an idea for you: learn how to repair smart phones. In a recession people will happily pay $50 to repair a broken phone, rather than buy a new one for $300+

Now go forth, young grasshopper, and prepare for the recession.

Thank you Lowtek! What I really got from your post amongst many is that if you're able to convince someone to give you money during a recession by providing service then you've definitely got something great.

And also to not be engulfed by panic/paranoia. Thanks!

 

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[lowtek]

Make yourself valuable. Learn how to give people what they want. Learn how to be able to learn. Don't ever say "I don't know how to do that". Live within your means.

Stack precious metals, guns and ammo, and lots of booze for trading...

He's in the UK, so.... no stacking of guns and ammo.

 

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[RazorCut]

If in the UK get a decent deposit saved up and if a recession hits buy a house (or houses if you can swing it). One of the most difficult problems facing the youth in the UK is getting on the property market. A recession, and so fall in house prices, gives you your best chance. Also typically it doesn't take long for house prices to recover so if you are just doing it for an investment opportunity there is some good money to be made.

I think currently the UK needs to build 300,000 homes per year just to keep up with demand and that is just not happening and will not happen anytime soon. Supply and demand means bricks and mortar and a safe bet.