Preparing to Hunker Down
Question: I know several people who are in danger of either losing their jobs or seeing a significant loss in income (the self-employed or those who have to accept lower-paying jobs). Some of these folks are already fairly frugal, some are not. What should those who suspect they might not have a regular source of income do NOW, before they lose their jobs or key clients? Here are a few of my ideas.
1. Stop spending money on anything but essentials. Carefully assess what you think is essential and then think again. Cable TV, with very few exceptions, is *not* an essential. 2. Even though you hope that you will never, ever use it, and you plan to do everything in your power (work minimum wage jobs, clean houses, etc.) not to use it, set up a line of credit (not a home equity loan) on your home now, while you still have a job and are deemed “credit-worthy” so that you don’t have to borrow money from family and friends in the event of an emergency. 3. Update your resume now, before you need it. If you can’t bring yourself to do that (paralyzed with fear, in denial, etc.), as you think of things that you should mention in a resume write them down on scraps of paper in stick them in a folder.
What other ideas do you have?
Answer: Every war is won years before its fought, and every game in the hours and hours of gruelling practice before its played.
We are very possibly in for the worst times seen in a generation. Not to get ugly – but if someone is just now trying to “hunker down” and “prepare for it” with a $500/mo SUV parked in the garage and $20K in credit card debt – they’re fucked. Pure and simple.
Going to learn a lesson about life, the hard way.
I’ll be buying their motorcycles, jet skis, waterbeds and other toys in the coming years for ten cents on the dollar.
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