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Gingersnap
03-19-2009, 10:22 AM
How to Survive the New Depression

Posted by jonathan on 9/18/08 ē Categorized as austerity, banking, making money, money, personal finance, saving

http://i39.tinypic.com/16l7it.jpg
Photo Courtesy of Improv Everywhere

It appears weíre on the verge of a new Great Depression. Unemployment is up, wages are stagnant, inflation is up, major corporations and banks are collapsing left and right. There hasnít been this much instability in the international economy since the Great Depression.

The old Boy Scout motto is ĎBe PreparedĒ and thatís a great creed to live by. Nothing in life is guaranteed.

So, how can you prepare for this?

Maintain Calm
The people responsible for this mess arenít losing any sleep, neither should you. Things may be getting bad, but theyíll only get better. The nature of the capitalist systems is a series of up and downs. Bad fiscal management by the Federal Government and the Federal Reserve has smoothed out the grooves for the past 30 years or so, the problem is that you CANíT get rid of the ups and downs. Thatís just not the way it works. Thatís why itís important to prepare for the valleys just as much as the peaks.

FDIC Backing
Your money is generally safe in a bank. You should be monitoring the financial health for your bank. Since most banks are publicly traded, this information is freely available. Donít trust that the bank will always be there. Many banks have failed already. Luckily the FDIC has your deposits insured up to $100,000.

So, what if you have more than $100,000 cash in the bank? First, you shouldnít have that much money in a savings or checking account to begin with. If youíre truly investing your money, passbook accounts are terrible places to keep your money. Your money should be invested in mutual funds, retirement funds, bonds, etc. So, what if you do have more than that in the bank anyway? Split it up, there is nothing to prevent you from spreading your cash around to several different banks. That way youíre completely protected.

Credit Unions
If youíre completely disgusted by the banking system, like my wife and I, you donít have to continue participating in it. Join a local credit union. Youíll have more of a say in how your money is handled. Credit Unions are not for profit, so they wonít be consolidating and joining bigger banks and then making stupid multi-billion dollar investments that will bring down the economy. Credit, above all things, are local, which is great. Credit Unions can also get you a car loan, mortgage and other products. Your money is also insured by the Federal Government under a separate insurance program as the FDIC.

Much more at the link. (I love the pic, btw. :D)

Austerity Blog (http://www.austerityblog.com/2008/09/how-to-survive-the-new-depression/)

noonwitch
03-19-2009, 11:42 AM
As one who still is employed, I've found this is a good time to get some great deals on designer clothes. Nordies and Macy's can't sell the stuff at the original price, so they are marking things down earlier than usual, and I have gotten some great deals on clothes for work. It worked out well for me, because I needed new clothes because of the weight loss and all.


Credit Unions are a good thing. I'm a member of one. They take care of their members, and can also get you some great rates on extras, like insurance and vacations at various amusement parks and other tourist attractions.

lacarnut
03-19-2009, 01:27 PM
Getting out of debt, living frugally and saving are principles my parents followed all their lives. I have been a slow learner in that respect but now it has started to sink in a little. Many Americans are doing those things out of necessity which is good.

Milly
03-19-2009, 06:21 PM
But didn't the Lord High Obama say we needed to SPEND our way out of this?

What to do, what to do . . . .

Gingersnap
03-19-2009, 08:53 PM
But didn't the Lord High Obama say we needed to SPEND our way out of this?

What to do, what to do . . . .

Do what he advises - spend somebody else's money. Save your own, though. :D

AlmostThere
03-21-2009, 09:00 PM
As one who still is employed, I've found this is a good time to get some great deals on designer clothes.

Seriously, that is the best laugh I've had today, maybe all week. :D:D