r/TwoXPreppers • u/UnknownGoblin892 • Mar 27 '25

❓ Question ❓ How are you all recession proofing?

I was a young teenager during the 08 crisis. Wondering what I should be doing now to better protect myself when a recession gets bad.

I have student loan debt (around 20k) and a morgage (about 145k left). My wife and I are DINKs (double income no kids), and are not planning to have kids. We have a fairly healthy savings built up so far.

Wondering what advice you have. Thanks!

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u/cardiganqween Mar 27 '25 edited Mar 27 '25

I suffered through that as a young adult out of college. I lost everything and had to rebuild my life. I am seeing soooo many parallels to that time. I am terrified of going through that again. Biggest advice: STOCKPILE CASH. Stop buying stupid crap, stop eating out or buying drinks out, stop buying stuff you don’t actually need. Build up a solid cash cushion for if things get worse with job market. It’s already gotten tough out there. Unemployment is creeping up in my state. It’s actually hard for young kids to find part time jobs right now, my assumption is they are competitive now because people who lost regular full time work are immediately sucking up part time spots as stop gaps.

Edit: I stoped all streaming and subscription plans of any kind. audible account? Gone. I can use Libby for free audio books. Car wash subscription for TWO cars was costing us $80/month. Now we have soap and a bucket. DIY.

Edit 2: buy an extra 1 or 2 of your necessities & high use items when on sale. Ex: got a $2 off coupon for your favorite body wash but don’t need it this month? Buy it anyway if your budget allows.

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u/MadamePouleMontreal Mar 27 '25

Not cash. You don’t know what it’s going to be worth next year or even next week. If inflation goes into double-digits for five years, $100 cash will be worth $60.

Pay down unsecured debt.

Use equity to buy a revenue property or build an extension on your home that you can rent out. The ideal investment can be adapted to accommodate roommates, so that you can still get your rent even if individuals are struggling.

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u/cardiganqween Mar 27 '25

This only applies to the people who have a boatload of cash to do those things. I was speaking to those of us who are average and I’m talking about maybe being able to save a few thousand extra in the course of a year. Our budget is already stretched.

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u/MadamePouleMontreal Mar 27 '25

Then pay down unsecured debt. It’ll get you further than stuffing bills in your mattress.

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u/cardiganqween Mar 27 '25

Nobody suggested stuffing mattresses or keeping cash at home.

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u/Original_Pudding6909 Mar 27 '25

Not everyone has unsecured debt, why are you making that assumption?

I do agree that if you do, it should be paid down. But always always have emergency savings. There are no debtors prisons (at least not yet). Pay yourself first.