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Surviving the Next Recession

April 15, 2009

jamesmoneyOne of the most popular Works for me Wednesday themes is Recession Survival tricks. Our household cannot claim to have felt the Recession’s full wrath and the reasons for this have very little to do with cunning financial strategery, and more to do with these items:

1. Our income is the result of a math teacher’s salary. When the government decides to start cutting back on Math in order to finance failing corporations’ million dollar year end bonuses, then….wait a second…

2. We have been concentrating on a different financial recession, also known as Government Student Loans.

3. Our involvement in the stock market boils down to James’ RESP – which is based on an investment portfolio that would rather stay home and nap, thank you.

4. We already live in a basement.

So because I (a) am forward-thinking and (b) like to deal with my problems by avoiding them, here is some advice for the NEXT recession.

1. Pursue a career that not only has a predictably stable income, but that lays out your salary until retirement in a handy chart, letting you know that,  “No, you won’t live in anything more expensive than a 1970’s split level. Though if you save really hard, you may have funds to renovate. Once all the kids have graduated. But do it before you retire – we also have a handy chart plotting your pension.”

2. If you’re going to go into debt, go into student debt. This is because if you choose to borrow as a mature professional adult, you will know that loans are not free money and that they accrue ungodly interest and will eventually need to be repayed, perhaps by selling your major assets. This is all very stressful for said professional adult. As a student borrower, however, you will not be able to get over how much FREE cash the government dumps into your bank account every semester. Ordering Chinese take-out every night for the rest of your degree does not seem irresponsible. And for a brief four to five year period you will think, “Oh Government, you’re not so bad.”

3. When I was learning to drive, my Dad always said, “Claire, everyone on the road is trying to kill you. Keep that in mind.” The same can be said for the stock market. It is trying to kill you. So unless you have a degree in Wall Street, there are more dignified ways to die.

4. Live in the basement of a 1970’s split level so that when you save enough money to buy it, your moving expenses will be negligible.

5. Check out this blog: Get Rich Slowly.

***The photo for this post also appeared here. I was going to take another picture of James eating money but was informed that this is not financially responsible, nor sanitary.

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One Comment leave one →
  1. Sheila permalink
    April 15, 2009 2:12 pm

    I enjoyed your post!

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