As a millennial it feels like we’ve never gotten out of a state of chaos. The few times I’ve been in a place where I’ve been able to consider buying a house in the last 10 years, something happens where the cost goes up too much or the economy drops and I have to save every penny or I lose my job. It feels like I can never get ahead. I’m hoping this time the stars will align in the next few years where prices will fall and my portfolio will go up, so I can FINALLY have some financial security. My biggest worry right now, is that all these financial “tricks” are going to be done by everyone. And then they won’t work.
I'm not over the last recession either! And I'm one of the lucky ones who can afford trauma therapy. (Actually I'm going to save this to watch later... I'm not in the right state of mind to think about this right now)
You have to change your mindset!! Your words come across as scarcity complexed.completed.. ever watch the Secret.. even if you have you need to watch it again and again and again, the law of attraction is you need to be of the mindset that there IS enough to go around
I live in Germany and it's near impossible to buy a house without your parents' help. It's literally insane that some people gave up and just accepted paying rent for the rest of their lives. The problem is that the retirement income is so low (if you don't pay in over 1000€ per month for over 40 years) that you will have to get help in the end if you don't own a flat or a house.
3:01 Do remain calm. 4:27 Don’t sell your portfolio in a panic or make emotional investment decisions. 6:31 Do keep investing. 8:30 Don’t take on extra debt or make a big purchase. 9:46 Do prioritize your emergency fund above all. 11:37 Don’t quit your job without a solid backup plan. (I arguably just violated this one, but I have savings and a passive stream of income that covers my necessities.) 13:38 Do pay down debt, especially credit card debt. 15:15 Do not cosign on a loan.
Was advised to take an extra year to finish my PhD cause of the pandemic, no one is hiring. Now, a new recession may be happening right as I finish my program. We literally cannot win, I swear.
Definitely understand as a Psy.d who lost post doc opportunities due to lack of funds/grants during covid...now sites want you to work for nothing due to recession fears🤦♀️don't give up!!!
I feel the same. Its ups and downs regardless and whether your life lines up with a bust or boom part of the cycle in a way that allows you to do the things you want (save for a wedding, to buy a house, invest for retirement, etc) seems to be based almost entirely on luck tbh
I survived the 2008 recession as a fresh college grad with no parental support. Now I can smell a recession coming half a mile away. My husband and I both got new jobs a couple of months ago, then both companies put in hiring freezes. We refinanced our mortgage the week before rates went up back in January, and set up auto investing of the money saved. As much as 2009 sucked, it definitely taught me how to get ahead of recessions in a way that’s paying off now.
As an elder Millennial who graduated in 2005, I just hope this recession isn't as bad as the 2007-08 one. I was one of the lucky ones (employed, no major job losses) and it still took years to feel like I was financially getting ahead despite making all the "right" actions.
In Europe the prices for water, heating and electricity are going higher every month from february 2022. Its not winter yet and the prices of gas (for heating and water warming) and electricity are 150% higher than february 2022. Also the rent gets higher wit inflation. Thats a huge problem.
Do you guys not have leases? Your rents should be fixed for 12mo or more at a time, at which point you get to negotiate again. In my experience, most landlords want to keep their good tenants and happily discuss and are willing to meet in the middle when possible. Also, I would hope you have laws about water and heat having to remain on regardless of the bill being paid. Here in the US, water cannot be shut off unless multiple attempts to put a payment plan into place have failed and heat cannot be shut off between October and March. Granted, this doesn't help if you have oil heat but that's why most lock in a low price in summer for their winter oil.
@@Chaotic_Pixie it depends a lot on how the housing market is in different countries/cities, but where I live (Berlin) there's an absolute shortage of housing which means landlords have the upper hand in any decisions and tenants have little to no power negotiating anything. Trying not to panic but it is pretty scary, specially with inflation going up quicker than I have ever seen before.
Canada's not much easier. I just received a notice that my balanced billing won't cover "usage" because "my usage" exceeded predicted amounts. And my first reaction was _omg, how can I cut back? Turn off the AC!_ except then I took a closer look. My actual usage this year is down 20% month over month of last year, it's just that costs and delivery fees have gone up. Heck, I pay more in delivery fees than actual gas or hydro! My usage only affects the final price by a few dollars. There's just no winning. 😕
I graduated from college in 2007, and managed to find my first teaching job in 2008. Teachers make very little at first, but are supposed to get small raises, "steps" every year until by mid-career we should in theory make it up to the middle class. One of the first things that happen during a recession is lay-offs and pay freezes. My pay was frozen from the moment I started until just a few years ago. For my 15th year teaching, I will be making 3rd year teacher pay, a difference of $30k. If we have another full recession, I will never hit the top of the pay scale by the time I retire (IF I can retire). I am tired and afraid.
If you have the time and are in the right location/location adjacent and your teaching credentials are in the right field... you could make a significant amount of money tutoring. Masters degree holding educators with a strong background in math or science and especially if you can effectively communicate the concepts of algebra, calculus, and mathematics for science... you can make $45-$60 an hour, easily.... possibly closer to $100 if you're in the right area and can find the right clientele. Even during a recession, parents will find the $$ for 2 things when it comes to their kids... their academics and their orthodontics... not to mention the surge in online students both in secondary education and collegiate education who are taking classes online but not effective online learners. I imagine it will be similar to 2008 (I'm a year younger behind you and would have graduated then except, health issues) and there will actually be a surge in those returning to school for practical degrees like... nursing and math-heavy trades. My bachelors isn't even in math but I have 7 years experience tutoring and can garner $30/hr. I know many educators who've left toxic school environments to become full time tutors and they make more money than they ever did teaching. If your area is languages... that's another golden goose. There are always programs looking to hire for ESL and if you teach another language, there's translator work available if you look for it. You can also sell lesson plans if you're good at designing them. That was always my favorite part of my education courses but I never got my certification so that's a field closed to me. If you'll be writing them anyway for your own purposes, I know there are sites where you can sell your lesson plans for others to use. Just some ideas. Alternatively, there's always Uber, especially if you're in a big city.
@@Chaotic_Pixie Can confirm (somewhat). As a librarian, I see a lot of tutors using library spaces and study rooms for tutoring sessions, and i know that some of the busiest tutors cut back to PT or substitute teaching only because tutoring pays better on a day-to-day basis. Kinda sad, when you think about it.
I loathe this side hustle culture that has sprung up in our time. We should be able to afford to live a comfortable life on the job we already have without having to add something else on and work a 50 hour work week. Boils my blood
@@thesehoesaintloyal6267 just say you want slaves bro, it ain't that hard. Bare minimum necessities for life could be considered a prison standard set up, after all you dont need luxuries right? You just need water and shelter and the occasional piece a bread and mash, then there shouldn't be no reason why you cant work 50+hrs a week back to back
That's because we never did, at least not individuals who were young adults at that time. There's a lot of research to back that up, that there are huge wealth and employment disparities between people who were already more-or-less financially established around 2008-9 (i.e., older adults) vs. those who were starting out (recent graduates).
At first I skipped the video, because this subject stresses me out. But then I thought, Chelsey is the only person whom I could hear talking about it !!! Also I just graduated University and going into my Master's in the worst (maybe?) time possible!
I remember my dad getting laid off during the 2008 recession being one of the worst stressors on my parents marriage, and me abruptly realizing as a helpless high schooler how fragile our finances could really be. he was our main breadwinner back then, and the future seemed so bleak and uncertain. We're doing a lot better now, but it's still good to know how we should prepare for the next time. There's definitely some points here I need to go over with both parents lol
It's really hard watching this, even from my very privileged position. We have good emergency funds, low bills and a very tiny mortgage payment. We want to move into a house because our 1 bed flat is too small to get pets or make lifestyle improvements (e.g. nowhere to store a bicycle, no garden to grow veg), but looking at this, it might be a really stupid idea to buy a house any time soon, even with 2 good incomes. And that makes me sad because we already put so much on hold while I did my PhD for 11 sodding years (handed in last week). First world problems for sure. We should probably keep our costs low and prepare to help family members who are already on a knife-edge.
Same here. We’ve been working our butts off, saving, making smart decisions, living modestly…. The home ownership dream just keeps sliding away. It feels as if every year is risky and there is no security in the future. I wonder if my parents felt the same way, but it is a terrible way to go through life - just keeping on hold while you wait for the next disaster to inevitably hit and set you back once again.
@@randomnessoverloaded I'm sorry you are in this boat too. Our current mortgage is much cheaper than rent would be on the same flat, so buying isn't always more risky, but no big decisions can be taken lightly right now. My parents lived through the days of 15% interest and the three-day week here in the UK in the 1970s. I hope it doesn't get that bad again...
11:37 is one of the reasons I don't quit my 8-to-4 despite my side hustle giving me the same amount of money per hour as a whole day working. I'd rather have something secure and an extra than wondering if I will have enough every day. Not to mention a great health care package . I can wait until recession ends, and then we'll see.
incredibly irritated that i am just now digging myself out of the hole my family ended up in back in 2008 only to be buried right back in the very same hole. as a millennial/gen z cusper it genuinely feels like i will never feel financially secure, even with a high-paying full-time job AND a side hustle. the damage of generational poverty feels irreversible.
To whoever reading this ,never stop chasing your dreams you can do it.keep pressing and thriving you will make it! Consistency is the key to achieve your goals .
Delightful 🥰 I don't know who need to hear this but saving money won't make you a millionaire investing will, so take out some money and invest ,but invest wisely .
I love how you always back up your point with facts & figures from previous study/research to explain a point. It shows how much effort you put to bring us your contents and I truly appreciate the efforts please keep it up. I have been watching this channel for almost 2 years now.
@@Darthlauralou Yep. Good new is, we're probably the best prepared generation for this. It's literally been all downhill, which is why Chelsea's advice is great. Just keep doing what we're doing but on steroids until the next recession hits lol.
I was in 8th grade lol so coherent enough to remember adults talking about it but not enough realization in that moment to remember good tactics Good thing Chelsea is here to help😁
Welp. If/When this happens, it will be the 4th recession of my adult life, the 7th of my life (I was born in 1975; good times). Anyway, the reminders are always helpful. Thank you! To all the younger folks out there, these tips will work. Trust me. I know. - Signed Gen X
I had to close my 20 year business in 2022 went into depression and also health issues, this interview reinstated the confidence in me moving forward with something new. I will start investing with my little savings.
I graduated high school in 2004, so 2008 I was still new to being an adult, and had my first full-time job. I was making minimum wage, which was 6.85 at that time, and living paycheck to paycheck, sometimes with very little left at the end of the month, and that was even with having a roommate. I still think about that time to this day, and the idea of having nothing in my savings stresses me out so much because back then even putting $25 into my savings account was a burden and I usually ended up taking it out the next week anyway, but I kept that automatic transfer just so I could keep the account open.
As a millennial, I never got to the point where I felt comfortable that the rug wouldn't be pulled out from under my feet. A pandemic was declared and my anxiety level went down, like it had been idling before and now that something was actually happening the rpms on my anxiety went down (I am aware that I was in a very fortunate situation, and a lot of it was just luck. but not all of it: some of it was anxiety being vindicated).
Financially it makes sense to store food in your home. Think if it like food insurance. You can either just store extra of things you eat, or you can store long term dry goods like oatmeal and rice. Buying food before an emergency is very different from hoarding, and buying food and then repackaging it for long term can help add to the future food supply.
I'd extend this to a lot of household goods, too. I've started buying two at a time and setting one aside for all types of cleaners, for instance -- having a year's worth of soap, dish soap, shampoo, body wash, deoderant, all- purpose spray refills, toilet paper, toothbrushes and paste, etc, etc, means if I hit a bad stretch l'll only have to budget for perishables. It's odd how reassuring that is.
a full pantry is money in the bank...especially if you buy your staples when you can save on them. also, not having to buy them at a higher price can save you. Positive vibes from New Hampshire, remember to be kind to each other and yourself during these trying times.
i don't know who needs to hear this but TURN YOUR WATER TEMPERATURE DOWN I was paying £220 ((around $300+)) for gas/electricity, i didn't realise my water temp had anything to do with it until I dropped it from high to low!!! now im paying around £80 a month! ((roughly $100)) a month!
In Ireland at the moment we're already in a pretty bad housing crisis, and we're now looking down the barrel of a fuel crisis which is having a knock on effect on the cost of living (in that we're all feeling the pinch, a lot, but unless you work in farming or transport it hasn't hugely affected anyone's jobs yet. Yet being the key word). I have no idea how a tiny country like us is going to cope in the coming years with all this slowly building
Been following for years and still love the content. I was only 13 during the last recession. My parents bought a house and sold at a loss 7 years later. Feeling grateful for the education offered now.
*ongelooflijk inzichtelijk kanaal. Ik zal voor altijd in het krijt staan, je hebt mij en mijn familie veel geholpen, je video's, advies en lessen zijn inspirerend nuttig voor ons,,Ik verdien nu elke week. Je bent zo'n zegen voor deze generatie, we houden allemaal van je*
Ik vind het niet erg om enkele ideeën te delen die me hebben geholpen. Verstandig sparen is de beste manier om vooruit te komen en rijkdom op te bouwen, beleggen blijft een prioriteit.
Thank you for this video TFD & Chelsea! I'd never faced a recession as an adult before so I've been panicking a bit, but watching this makes me feel more in control of my finances
I'm very lucky to be a millineal who owns a home. But even for me in the 2 years I've owned my home I have had so many issues and frankly disasters happen that we struggle and feel stressed 24/7. A tornado hit my house earlier this year and we are still struggling to get everything fixed. Despite having good insurance I will be out about 40,000 dollars in repairs after this. I'm having a baby in 2 months and between that and the lingering major repairs I am so worried about a recession and inflation because we've burned through emergency funds this year.
The only reason it hasn't been declared is politics. But, it's already been multiple quarters of contractions. We just haven't had significant layoffs yet.
This is a really hard time right now. I know I’m blessed to have a job but I keep being passed over for promotions and hate my company. I don’t make enough for afford a home where I’m at and my rental is no longer going to be available after the end of this year.
Video says, “Do not panic,” but here I am panicking by the end of the video. I’m tied with a few financial things right now that could blow in my face if I get stuck with them in a serious recession, so I better reduce, resolve, and plan now to alleviate my situation before going in 2023. And I’m getting a second job immediately this month to save more money.
panic productively. ;-) I can fully relate to having to restrain myself from panicking, and especially temptation to sell my portfolio at marginal profits and wait to 'buy the dip.'
I've been wracking my brain on this as I've been looking to buy my first ever home right now. I'm one of the MANY walking wounded from The Great Recession, and while I am in a MUCH better place now than I was then, the memory of it still weighs heavily. The lesson hard learned was that I went from being financially set to scrambling within a matter of months, and it still freaks me out a bit...
If you do, personal experience advice from a townhouse and now a stand alone, have at least $10k for just random stuff that comes up as you get in. Even in "new construction" there are a lot of unexpected costs.
@@corrinagm483 Totally. The plan I have with my realtor and loan officer would have me purchasing and keeping about three months worth of money in savings which is a decent cushion.
@First name Last name I'm considering it but in what regard? If I were to purchase it would be in the next month or so. I know no job is 100% safe but mine is pretty stable so I'm not super concerned about that. And housing, especially in my area, shows absolutely no signs of getting cheaper so if I don't buy now it's probably not going to be any easier later.
@@ariwl1 That's nice they are giving you a realistic buying experience, instead of the, Oh but you'll have a warranty or Buy it's brand new! Nothing will break. The other thing to consider is take whatever the deductible for your home insurance is and put it somewhere (physically or mentally) that you will not spend it. We've been in our current house 8 yrs and it's on its third roof due to severe hail storms. The first one hit two months after we moved in. All stuff I wish I had known before I signed the paperwork.
@@corrinagm483 For sure. It's 99% likely I'd be buying a condo so HOA fees will account for some of that already. And I'm fortunate in that my realtor is a long time friend and she's SUPER professional and experienced, so she'd be beside herself if she let me get into a bad place, or at the very least would make absolutely sure I understood what I was getting into.
In trying times, you don't know what might happen and when you need money the most. Thanks for mentioning the importance of setting aside an emergency fund!
I'm fully prepared to start paying them again, but I also am not totally convinced they'll actually let the payments resume at this time. I am expecting another postponement. Again, I'm prepared if I turn out to be wrong, but it would be such a silly move politically that another postponement seems likely.
Timing is everything. These markets have been in rally mode for about 2 weeks now, including up sharply today. I've been doing this a long time and basically I believe there will be a correction sometime in the future. However, as usual he old Wall Street adage applies, "Don't Fight the Tape" I went short about 1 week ago but Currently up 17% and being cautious. Still better deal than letting it sit in savings or checking earning near 0-1% interest. As one poster below states, the markets can remain irrational longer than you can remain solvent. Very true. But when it turns it will take everyone, including the piano player.....
Well up at 17% in this present market is impressive. I'll cherish the idea of being educated more on how the yield correlates with the market and inflation. If you could be kind to share some materials I can read, Will be much appreciated. thank you.
It's always going to be the same formula: be patient, make smart investments and don't get scared by the markets going down - this often comes with the best opportunities. We've seen worse times before, and we will for sure see worse in the future. Always be prepared to take advantage of whatever opportunity arises.
@@manueldonohue6732 I’m buying fractional shares of TSLA, AMC ,NIO ,NVR again. Before I was after dividends for passive income but it’s slow growth so i took my chances on high growth stocks and I've gotten a 120% increase this year but hopefully I’ll reach a million sooner
I just can't see how the Federal Reserve can fix the root cause of the inflation. The Huge increase of the M1 money supply. If they pull that easy money out it will crush stock values, home values and corporate profits. This will hurt the top 10% the most since they have benefited the most from this free cash.
As a single parent the last recession I didn’t feel the recession that much due to my job being an essential but I fear I may feel it this time around.
Great video as always Chelsea. You really made me think about how important an Emergency Fund is which is what got me started on my budgeting/ Youtuve journey. Thank you✨💜
Maybe I'm currently out of touch on this but HOW are we able to lose jobs right now when "no one wants to work"? People have been urgently hiring for a while now and it baffles me that we will 100% be losing jobs in this recession as well. Make it make sense.
Because companies are making less profit, some will have to lay people off to save money, whilst other companies will dissolve completely: the total number of jobs in the economy will fall. The “people don’t want to work” rhetoric is false and based on the fact that people were quitting low wage jobs in search of better paying jobs, but those will soon become few and far between
@@robyn6454 it's so tiring, being kicked when we are down financially, politically, health-wise, etc. And yes obv the "no one wants to work" rhetoric is false I just didn't know how to rephrase the labor shortage. It's just because companies refuse to compensate their workers fairly
Thank you so much for the advice! I was able to get a lower interest rate on paying off my credit card. I was able to pay it off today with a bank loan with a lower interest rate fee 16% than my credit card interest rate of 18%. I hadn’t heard this information since almost 3 years ago from another financial advisor. Thank you for reminding me to try again. I needed the reminder since I wasn’t able to get approved for a loan 3 years ago thus paying almost $100 monthly on interest rates but i wanted to pay off my loan quicker not knowing how to.
thanks for this video it's very reassuring for someone like me, got laid off from my corporate job last week, reason: recession 😭, the company has offered a transfer to a position paying me way less but I don't know what to do, I rather have something solid and barely make it paycheck to paycheck, some advise is definitely needed in this hard time for sure
Tough to hear they want to let you go at your current pay but can have a lower paying position....which is code for more work for less pay. Companies should give severance pay & be quiet
Sorry you're in tough times right now. I can't say what the best thing to do is, but if it were me I'd likely take the job that's there and then look for something better elsewhere. Good luck!
Find a job with a different company. If you take the lower pay, the company knows they can keep your pay low forever, and they're going to to use your knowledge from your previous position to their advantage. From your employers perspective, you obviously don't "need" a higher pay rate if you are willing to take a lower one. So spruce up that resume and find a new job!
Negotiate the terms of the new position. Can you work fewer hours per week, as well as work from home, if possible? You will need those precious business hours to focus on your job search.Working on your resume in the evenings/weekends is the worst. And responding to job opportunities while people are still at work is so much more effective.
Thank you for this, Chelsea! I've seen other videos about the upcoming recession, and yours was probably the one that gave me most calm and the advice was more on point for my needs. Cheers from Panama! 🇵🇦
Not so fun fact: my investing portfolio is counting 50% loss since pandemic started. But, as I was always investing money that I do not need in a short term, I am not worried. I am not counting retirement fond because I am living in Germany. We all (with a few exceptions) have retirement set up automatically and have no influence on that money. You can’t lose your retirement money.
@@Sky-Child there are pros and const to every system. And there are things I disagree with the approach. But health insurance and retirement fund for everyone here is really amazing. Just few days ago my health insurance company called me to inform me which regular checkups I shall start doing now as I am in mid thirties. And to explain what they are covering. THEY CALLED ME. I did not have to fish for that information. As a foreigner living here, I was really surprised.
@Sophia as a fellow German I have some thoughts on that: please inform yourself about the retirement fund. It is likely going to crash due to the ageing society and more people being retired and less people paying their retirement. It is not like your retirement payments will be locked away and be given back once you are retired. Please make sure you also save up for your retirement on the side, because more likely or not you are not going to survive off the government retirement checks you’ll receive later on
@@LittleLady178 thank you for this. And you have similar opinion as my account. I am hoping for the best with my retirement plan, but this is not the only plan surely.
I am the one who quit the job last week, working my last two weeks. However, I must say that I had side jobs and projects that get me into pretty good position while I am looking for something else
Never, ever co-sign on a loan. If the bank or lending institution wouldn't issue the loan, why should you? If for some reason you do want to help out, or think they will pay, you're better off just lending them the money yourself. As a co-signer on the loan your credit score also takes a hit when the loan isn't paid on time and after a period they can go after you for whatever wasn't paid.
Agreed. If a bank with extensive financial resources won’t risk it, you probably shouldn’t either unless you have the means to take over payment if they don’t pay.
@@Victoria-ot5om And even if the borrower does pay, it may mean something like the amount being paid is excessive. My parents cosigned on a car loan for my brother. He did make all his payments on time, but he also massively overpaid for the car. They should have gone back to the dealer and said no, we'll only pay what the bank will lend, or something less.
I paid off some credit card debt a few years ago by transferring the balance to a a card that had a no interest period for a year. Bank of America (and likely other banks) regularly offers balance transfer promotions in which you can choose to transfer your debt to a card with: 1. 0% interest for one year (then the regular rate applies after 12 months) 2. 1.5% (or so) for a year and half (then the regular rate). I chose option 1, knowing it would take me a little over a year (~14-16 months) to pay off the card. Even with the small amount of interest incurred over the last 2-4 months, it worked out that i would pay less over time than using option 2. However, if I had had more debt, it might have made more sense to choose the option with the longer period of low interest. Either option can be a great help for paying down credit card debt.
A revolving door of 0% cards for years cause of the signing bonus (free money). I did this cause my dad was backing my loans and he had a really good credit score.
Yes TFD! Time in the market > Timing the Market, I just needed to think that I'm buying investments I normally would, just at a discount 😄[you know rather than the deep existentialism of living through two recessions before being old enough to rent a car]
🤧🤧. 1st time dealing with recession myself, I was in highschool when recession occured.... I have no savings yet and no investments cause still a student and my fam ain't doing well with finances... Will try to save an emergency fund for upcoming recession, cause if US has it.. Then the whole world will be affected in some way. Note: I am living in Asia 😊
High inflation does not mean stock market was always under performance as of today there has been a spike in the stock market since the fed announced interest rate hike, and to the contrary previously the stock market did reasonably well when inflation was higher. Just speculation but every move typically retraces, Good news is the overall market is close to -3 deviation so it’s either about to improve very soon or really really go down a whole lot more. The question now should be (1. Are my Investments stable and secured? (2. What will be the state of my investments if the worst chose to happen now? (3. have i achieved my Financial goals?
The logic behind this questions looks solid. I miss reading positive comments with catching interest due to high rate of bots. How did you have all this planned out and what's the success rate so far?
@@donaldlocher2537 I Understood all this because i have been in close contact with my my Financial-Advisor ' Susan Kay Mack" over the years & she made me understand that strategy is the key during this tremulous time. She is quite the genius in portfolio diversification.
The comment sections for this channel’s videos are particularly rife with multi-account bot threads. Given these are educational videos, would it be worth putting warnings out about these? Pinned comments, etc?
One thing that wasn't mentioned here in regards to debt during recession Is that you can declare bankruptcy if you find yourself unable to pay the debt back, I declared bankruptcy and they cleared me of all my debts without having to forfeit any of my assets it was the 1st time I've ever declared bankruptcy
@@alexc2265 I think it's because I had few assets to begin with the only thing of real value they could have taken from me was my car and my computer, Other than that they would have had to have taken my gee hundred dollars I had saved up, my bed, and the clothes off my back. So I think the less unnecessary asset's you have the more likely you will get off like me. But that's just a guess
I understand this is important content and you are being helpful, but it feels an awful lot like hearing advice about carrying a pepper spray in your bag and learning self defence to avoid being harassed/abused. Like we can do our best and still fall victim and there will always be that girl who forgot the pepper spray and isn't physically strong and she doesn't deserve any of this. There is no collective winning under our current economic system and it shouldn't be on us to prepare pepper sprays for the bears to come.
I think this is a fair criticism of this particular video, but also, I think TFD does a good job critiquing the failures of capitalism in other videos. They have made their political stances clear (Chelsea has mentioned being a card-carrying DSA member multiple times), and gives tips for living in an undesirable economic situation while acknowledging that things are shit. TFD is saying "the house is on fire, that's bad, this is how you protect yourself," and your comment is coming across as "why aren't you talking about the house being on fire??" We know the house is on fire, but we still gotta made due with the current situation.
The thing about recessions is that they do not effect everyone the same way. You don't know if you will take a hit or not. The video is more of the old Scout motto: Be Prepared. On the other hand - if you are in a job or career that is strongly effected by Recessions (no matter what area of the economy the Recession hits) then it is VERY important to Be Prepared. You "know" with some certainty that you will be effected no matter what. I managed to avoid any bad outcomes from the Great Recession thru perhaps pure "luck" - I didn't loose my job (I did loose 2 years of raises and bonuses), I had bought a house 10 years before the bubble pop, and I had been working on getting financial ducks in a row in the 2 years leading up to the Great Recession (so I had cut the fat out of my spending, was more thoughtful about my spending, had bumped up my retirement savings slowly but surely, etc...). Some of my neighbors weren't as lucky - they lost their job or house (sometimes both). I suspect I would have weathered the storm even if I wasn't "prepared" financially - due to that "luck" thing of not losing my job and having a house i could easily afford - but I think I would have been much more stressed out. Because I was more "prepared" - I was contributing to my retirement accounts (buying on "sale"!!!) and because I was very familiar with my finances - I knew where I could cut back if I had to, or if I did loose my job I could get by for 3 months (maybe more) No matter what outcome I got from that recession - being Prepared meant it would less chaotic/stressful/drama filled. Since I wasn't strongly effected by the Recession and Prepared - it meant I came out the other side with "fatter" retirement accounts and bank accounts - and all I did was "hold the line" I stood there and did nothing (well, I did what I had been doing right along - I didn't change anything. I was prepared.) TLDR; Being Prepared - even if there's a bad Recession outcome it may be better than NOT being Prepared. Being Prepared - even if there's a good Recession outcome it may make for a much better outcome than NOT being prepared.
@@beckymartin4658 I’ve been a subscriber for years, i know her political stance, this wasn’t personal criticism… But I don’t think it’s fair to assume that “we all acknowledge that the house is on fire” of all ppl watching the video, that they all know what she said in previous videos, that they all share the same perspectives. Instead of reading my comment as a personal critique of her, you can just read it as a valid reflection, although it might not be that unique.
@@daydreambee Sorry, bad things were happening this morning to me when I wrote my reply, and it wasn't very kind or charitable. I apologize for my phrasing and if it made you feel invalidated. I should strive to be better. As a leftist, I think there is value in having conversations about "existing in a house that is on fire" without getting bogged down in the political nuance each time about the source of the fire or how to stop the flames. The latter conversation is *very* important, and I do not want to take away from that. That being said, until the glorious revolution comes, we still need to exist under capitalism, where fire is constantly burning and once-in-a-lifetime economic downturns are happening every decade, and having tips for that is nice. I genuinely hope you have a good evening
Great information, I admire your optimism. I feel like things are going to get worse for the US economy and stay that way for years or decades before they get better. Our massive national debt and never-ending conflict with other nations are bad omens of the future.
This is why my co-signed student loan was the first one I paid off. I hated the thought that something would happen to me and my parents would be on the hook for the money.
I’ve been looking at house prices for a few years, and watched them rise and rise. Then in the space of a few days watched them drop 100,000 dollars. There was a point where, in my area, they were trying to sell a caboose for near 100,000. A bit insulting, and depressing. I wanted to buy a place in a few years and I almost feel bad that my parents lost basically everything in the last recession. All their savings, which never really recovered, my father couldn’t continue his millwright license because he lost his job and still works weeks at a time out of the house. Instead of having to move 3 provinces over for anything in my reasonable price range I might be able to find something reasonably close to my family, which would be quite nice.
For the "Don't sell your portfolio" rule, I'm going to use an analogy from my father (that I've shared in a different TFD post): Investing is like riding a roller coaster; don't get off the ride just because it's going down
It’s a pretty shit time to be young haha. This is the second semester where I have to live 200km away from my uni just so I can live with my father (since the market is so terrible). Thank god for the internet
I'm so glad your channel exist. I was looking for tips on how to handle a recession in personnal finance and all I could find was old white guys advising to buy stock and invest.
Go somewhere that has free education and where you know you can speak the language and find a good job. Scandinavian countries like Sweden will often pay YOU to get an advanced degree.
Depends on where you were planning to go. In some countries, students have low or no tuition and may be given a small stipend to live on while they are in school, and if that's the case for you, I don't see any reason not to do it now. But if you were planning to go somewhere that would require taking on debt, it may not be the best option.
Well, i had instances where my Investment was decreasing in value and I had to take it out. Some Investments never repay their value, so no needto be rigid about sunken costs.
Honestly, I usually buy a stock and then don’t check on it for awhile such as a year and go look at everything that happened to it and buy another. It’s good to just leave your stocks in the back of your mind
Oh good, another recession. I didn't ever want to retire anyway. *sighs in baby Gen X* I just try to grit my teeth and keep my eyes off my retirement fund during recessions so I don't cry.
Yeah. I've managed the emergency fund and I contribute to workplace and government retirement plans, but honestly, me even getting to retire is a bit of a pipe dream. Edited to add -- ditto to the baby Gen X bit. Sighs all around.
Oh boy did the music stop in 2008. I was just graduating uni and there was nothing for us, I think a lot of old ass millennials haven't fully recovered from it yet. Like, the music didn't just stop, there was an awkward silence punctuated only by the sound of someone throwing the tuba off a long cliff and hitting every rock on the way down. Do not recommend.
Since I was 10 during that time and living on the opposite side of the world, could anybody point me to a resource that explains the recession and the effects of it on the ordinary people/millennials in simple words?
If you're prepared for it, it seems like the perfect time to retire IMO. Several of my colleagues retired early in the pandemic, for instance, and not one regrets it now. Aside from not having work-related stress (or costs, because simply being employed is expensive), rising interest rates can actually benefit people with savings and investments. That said, if you're not financially ready for retirement or lack stable housing, maybe it's better to dig in and hold on? Edited for spelling, because my phone mocks me.
Chelsea, If you don’t tell us where you got your blouse I’m boycotting your channel. J/K. I asked you the first time your wore it. I just ❤️ it. It’s beautiful. I truly enjoy your videos.
Would the plan of going to grad school next year be considered a bad decision if I’m trying to pivot into a career that could pay more as their baseline than where I currently am? Going into a recession, would this be disaster out if I took out loans for this; as I was thinking of the long-term career-wise without thinking of the economic situation at hand
Are you going to be going to grad school part time while you still work? That is what I’m doing and I have money saved up to avoid debt. I’m going to continue working though and am choosing a state school that is not too expensive.
I graduated soon after the 2008 recession, and it took over a decade to get back to the point where I finally felt that maybe I had a good future after all. So I went back to school and am going to graduate soon after another one. Maybe I ought to consider the career choice of Eccentric Witch who lives at the edge of the wilderness and dumpster-dives for food.
As a millennial it feels like we’ve never gotten out of a state of chaos. The few times I’ve been in a place where I’ve been able to consider buying a house in the last 10 years, something happens where the cost goes up too much or the economy drops and I have to save every penny or I lose my job. It feels like I can never get ahead. I’m hoping this time the stars will align in the next few years where prices will fall and my portfolio will go up, so I can FINALLY have some financial security.
My biggest worry right now, is that all these financial “tricks” are going to be done by everyone. And then they won’t work.
Same anxieties here!
I'm not over the last recession either! And I'm one of the lucky ones who can afford trauma therapy. (Actually I'm going to save this to watch later... I'm not in the right state of mind to think about this right now)
You have to change your mindset!! Your words come across as scarcity complexed.completed.. ever watch the Secret.. even if you have you need to watch it again and again and again, the law of attraction is you need to be of the mindset that there IS enough to go around
I live in Germany and it's near impossible to buy a house without your parents' help. It's literally insane that some people gave up and just accepted paying rent for the rest of their lives. The problem is that the retirement income is so low (if you don't pay in over 1000€ per month for over 40 years) that you will have to get help in the end if you don't own a flat or a house.
Save yo damn money
"The economy has never once failed to come back stronger after a recession"
*cries in Greek*
3:01 Do remain calm.
4:27 Don’t sell your portfolio in a panic or make emotional investment decisions.
6:31 Do keep investing.
8:30 Don’t take on extra debt or make a big purchase.
9:46 Do prioritize your emergency fund above all.
11:37 Don’t quit your job without a solid backup plan. (I arguably just violated this one, but I have savings and a passive stream of income that covers my necessities.)
13:38 Do pay down debt, especially credit card debt.
15:15 Do not cosign on a loan.
13:39 Do pay down debt (especially CC debt)
15:15 Do not cosign on a loan
@@catlovernat thank you! Will add.
You forgot the benefits of Avast! antivirus /s
Thank you 👍
Thank you
Me in 2008: too young to understand a recession
The economy: don't worry, you'll get your own
Was advised to take an extra year to finish my PhD cause of the pandemic, no one is hiring. Now, a new recession may be happening right as I finish my program. We literally cannot win, I swear.
Definitely understand as a Psy.d who lost post doc opportunities due to lack of funds/grants during covid...now sites want you to work for nothing due to recession fears🤦♀️don't give up!!!
I feel the same. Its ups and downs regardless and whether your life lines up with a bust or boom part of the cycle in a way that allows you to do the things you want (save for a wedding, to buy a house, invest for retirement, etc) seems to be based almost entirely on luck tbh
Started my PhD in 2008. You never make the money back, finish as soon as you can.
I survived the 2008 recession as a fresh college grad with no parental support. Now I can smell a recession coming half a mile away. My husband and I both got new jobs a couple of months ago, then both companies put in hiring freezes. We refinanced our mortgage the week before rates went up back in January, and set up auto investing of the money saved. As much as 2009 sucked, it definitely taught me how to get ahead of recessions in a way that’s paying off now.
that is amazing!
As an elder Millennial who graduated in 2005, I just hope this recession isn't as bad as the 2007-08 one. I was one of the lucky ones (employed, no major job losses) and it still took years to feel like I was financially getting ahead despite making all the "right" actions.
omg I remember that 😣
In Europe the prices for water, heating and electricity are going higher every month from february 2022. Its not winter yet and the prices of gas (for heating and water warming) and electricity are 150% higher than february 2022. Also the rent gets higher wit inflation. Thats a huge problem.
I’m in the UK and am really not sure how I’m going to afford gas and electric come winter 😢
Do you guys not have leases? Your rents should be fixed for 12mo or more at a time, at which point you get to negotiate again. In my experience, most landlords want to keep their good tenants and happily discuss and are willing to meet in the middle when possible.
Also, I would hope you have laws about water and heat having to remain on regardless of the bill being paid. Here in the US, water cannot be shut off unless multiple attempts to put a payment plan into place have failed and heat cannot be shut off between October and March. Granted, this doesn't help if you have oil heat but that's why most lock in a low price in summer for their winter oil.
@@Chaotic_Pixie it depends a lot on how the housing market is in different countries/cities, but where I live (Berlin) there's an absolute shortage of housing which means landlords have the upper hand in any decisions and tenants have little to no power negotiating anything. Trying not to panic but it is pretty scary, specially with inflation going up quicker than I have ever seen before.
It is the same in the states, we have balanced billing (pay the same every month for gas) and it was $25 a month and is now $36! Insane!
Canada's not much easier. I just received a notice that my balanced billing won't cover "usage" because "my usage" exceeded predicted amounts. And my first reaction was _omg, how can I cut back? Turn off the AC!_ except then I took a closer look. My actual usage this year is down 20% month over month of last year, it's just that costs and delivery fees have gone up. Heck, I pay more in delivery fees than actual gas or hydro! My usage only affects the final price by a few dollars. There's just no winning. 😕
I graduated from college in 2007, and managed to find my first teaching job in 2008. Teachers make very little at first, but are supposed to get small raises, "steps" every year until by mid-career we should in theory make it up to the middle class. One of the first things that happen during a recession is lay-offs and pay freezes. My pay was frozen from the moment I started until just a few years ago. For my 15th year teaching, I will be making 3rd year teacher pay, a difference of $30k. If we have another full recession, I will never hit the top of the pay scale by the time I retire (IF I can retire). I am tired and afraid.
If you have the time and are in the right location/location adjacent and your teaching credentials are in the right field... you could make a significant amount of money tutoring. Masters degree holding educators with a strong background in math or science and especially if you can effectively communicate the concepts of algebra, calculus, and mathematics for science... you can make $45-$60 an hour, easily.... possibly closer to $100 if you're in the right area and can find the right clientele. Even during a recession, parents will find the $$ for 2 things when it comes to their kids... their academics and their orthodontics... not to mention the surge in online students both in secondary education and collegiate education who are taking classes online but not effective online learners. I imagine it will be similar to 2008 (I'm a year younger behind you and would have graduated then except, health issues) and there will actually be a surge in those returning to school for practical degrees like... nursing and math-heavy trades. My bachelors isn't even in math but I have 7 years experience tutoring and can garner $30/hr. I know many educators who've left toxic school environments to become full time tutors and they make more money than they ever did teaching.
If your area is languages... that's another golden goose. There are always programs looking to hire for ESL and if you teach another language, there's translator work available if you look for it.
You can also sell lesson plans if you're good at designing them. That was always my favorite part of my education courses but I never got my certification so that's a field closed to me. If you'll be writing them anyway for your own purposes, I know there are sites where you can sell your lesson plans for others to use.
Just some ideas. Alternatively, there's always Uber, especially if you're in a big city.
In which state are you located?
@@cabayern9416 Michigan
@@Chaotic_Pixie Can confirm (somewhat). As a librarian, I see a lot of tutors using library spaces and study rooms for tutoring sessions, and i know that some of the busiest tutors cut back to PT or substitute teaching only because tutoring pays better on a day-to-day basis. Kinda sad, when you think about it.
@@cabayern9416 @JamesAvatrade1
I loathe this side hustle culture that has sprung up in our time. We should be able to afford to live a comfortable life on the job we already have without having to add something else on and work a 50 hour work week. Boils my blood
I agree 100% !!! Ugh :(
Its called hustle. It was there when you didnt have modern day luxuries. And it will always be there smh
@@thesehoesaintloyal6267 that doesn’t mean you should work two jobs just to survive tho…?
@@thesehoesaintloyal6267 just say you want slaves bro, it ain't that hard. Bare minimum necessities for life could be considered a prison standard set up, after all you dont need luxuries right? You just need water and shelter and the occasional piece a bread and mash, then there shouldn't be no reason why you cant work 50+hrs a week back to back
@@thesehoesaintloyal6267 but does that make it okay? It would be nice to not need to hustle just to survive
I feel like a lot of us never fully recovered from 2008 or got back to what we had before then.
Yeah, I’ve never gotten over the trauma of it but I’m prepared now just in case.
That's because we never did, at least not individuals who were young adults at that time. There's a lot of research to back that up, that there are huge wealth and employment disparities between people who were already more-or-less financially established around 2008-9 (i.e., older adults) vs. those who were starting out (recent graduates).
At first I skipped the video, because this subject stresses me out. But then I thought, Chelsey is the only person whom I could hear talking about it !!! Also I just graduated University and going into my Master's in the worst (maybe?) time possible!
Congratulations on graduating and best of luck 🙂 It could also be the best time possible to go into your Master's!
@@pistachiorainy1967 thank you very much !!! I sure hope so!!
So far, of all the Recession advice I've heard, she's been the one to explain things in a calm manner and give actionable advice
I remember my dad getting laid off during the 2008 recession being one of the worst stressors on my parents marriage, and me abruptly realizing as a helpless high schooler how fragile our finances could really be. he was our main breadwinner back then, and the future seemed so bleak and uncertain.
We're doing a lot better now, but it's still good to know how we should prepare for the next time. There's definitely some points here I need to go over with both parents lol
It's really hard watching this, even from my very privileged position. We have good emergency funds, low bills and a very tiny mortgage payment. We want to move into a house because our 1 bed flat is too small to get pets or make lifestyle improvements (e.g. nowhere to store a bicycle, no garden to grow veg), but looking at this, it might be a really stupid idea to buy a house any time soon, even with 2 good incomes. And that makes me sad because we already put so much on hold while I did my PhD for 11 sodding years (handed in last week). First world problems for sure.
We should probably keep our costs low and prepare to help family members who are already on a knife-edge.
I feel u🌺
Same here. We’ve been working our butts off, saving, making smart decisions, living modestly…. The home ownership dream just keeps sliding away. It feels as if every year is risky and there is no security in the future. I wonder if my parents felt the same way, but it is a terrible way to go through life - just keeping on hold while you wait for the next disaster to inevitably hit and set you back once again.
@@randomnessoverloaded I'm sorry you are in this boat too. Our current mortgage is much cheaper than rent would be on the same flat, so buying isn't always more risky, but no big decisions can be taken lightly right now. My parents lived through the days of 15% interest and the three-day week here in the UK in the 1970s. I hope it doesn't get that bad again...
Hey well fkn congrats on handing ur PhD in!!!!
@@meghansullivan6812 thank you! I'm glad that phase is over
11:37 is one of the reasons I don't quit my 8-to-4 despite my side hustle giving me the same amount of money per hour as a whole day working. I'd rather have something secure and an extra than wondering if I will have enough every day. Not to mention a great health care package . I can wait until recession ends, and then we'll see.
incredibly irritated that i am just now digging myself out of the hole my family ended up in back in 2008 only to be buried right back in the very same hole. as a millennial/gen z cusper it genuinely feels like i will never feel financially secure, even with a high-paying full-time job AND a side hustle. the damage of generational poverty feels irreversible.
To whoever reading this ,never stop chasing your dreams you can do it.keep pressing and thriving you will make it! Consistency is the key to achieve your goals .
The mind repays what the heart can't delete .so be careful what you keep in your heart .purify it often .
Btc trading is just like any other business but in this case more sophisticated and advanced.
Investment put you ahead in life ,is like buying a day off you don't have to work again ,invest now and secure your future .
Delightful 🥰 I don't know who need to hear this but saving money won't make you a millionaire investing will, so take out some money and invest ,but invest wisely .
I'm from Spain ,I have been an investor in the crypto market for over 2 years .
Worked in the mortgage industry in 2007-2010! Ive survived that! Bring it on!!!!
I love how you always back up your point with facts & figures from previous study/research to explain a point. It shows how much effort you put to bring us your contents and I truly appreciate the efforts please keep it up. I have been watching this channel for almost 2 years now.
Graduated college in 2008 lmao. Recession v2 let's go!
Same! We really got the shaft, didn’t we?!
@@Darthlauralou Yep. Good new is, we're probably the best prepared generation for this. It's literally been all downhill, which is why Chelsea's advice is great. Just keep doing what we're doing but on steroids until the next recession hits lol.
We millenials are experts at this by now
I was in 8th grade lol so coherent enough to remember adults talking about it but not enough realization in that moment to remember good tactics
Good thing Chelsea is here to help😁
Recession 2: The Squeakquel
Welp. If/When this happens, it will be the 4th recession of my adult life, the 7th of my life (I was born in 1975; good times). Anyway, the reminders are always helpful. Thank you! To all the younger folks out there, these tips will work. Trust me. I know. - Signed Gen X
+
I had to close my 20 year business in 2022 went into depression and also health issues, this interview reinstated the confidence in me moving forward with something new. I will start investing with my little savings.
first educate and learn
know the consequences
Choose the leaders only
reap the compounding effect...
Keep pushing it, it’s only a matter of time, We are in such a prime time right now to be investing. What an opportunity.
@@donaldbrain5996 But I read it's a terrible time to start investing, but i also know people that became rich during 2008 recession.
@@leemarty2765
@@larrytyler823 I need recommendations on a reliable one please.
I graduated high school in 2004, so 2008 I was still new to being an adult, and had my first full-time job. I was making minimum wage, which was 6.85 at that time, and living paycheck to paycheck, sometimes with very little left at the end of the month, and that was even with having a roommate. I still think about that time to this day, and the idea of having nothing in my savings stresses me out so much because back then even putting $25 into my savings account was a burden and I usually ended up taking it out the next week anyway, but I kept that automatic transfer just so I could keep the account open.
As a millennial, I never got to the point where I felt comfortable that the rug wouldn't be pulled out from under my feet. A pandemic was declared and my anxiety level went down, like it had been idling before and now that something was actually happening the rpms on my anxiety went down (I am aware that I was in a very fortunate situation, and a lot of it was just luck. but not all of it: some of it was anxiety being vindicated).
Financially it makes sense to store food in your home. Think if it like food insurance. You can either just store extra of things you eat, or you can store long term dry goods like oatmeal and rice. Buying food before an emergency is very different from hoarding, and buying food and then repackaging it for long term can help add to the future food supply.
I'd extend this to a lot of household goods, too. I've started buying two at a time and setting one aside for all types of cleaners, for instance -- having a year's worth of soap, dish soap, shampoo, body wash, deoderant, all- purpose spray refills, toilet paper, toothbrushes and paste, etc, etc, means if I hit a bad stretch l'll only have to budget for perishables. It's odd how reassuring that is.
a full pantry is money in the bank...especially if you buy your staples when you can save on them. also, not having to buy them at a higher price can save you. Positive vibes from New Hampshire, remember to be kind to each other and yourself during these trying times.
@@04beni04 yes! Especially after covid I would everyone realizes that it’s wise to have extras of things in your house coughtoiletpapercough
i don't know who needs to hear this but TURN YOUR WATER TEMPERATURE DOWN
I was paying £220 ((around $300+)) for gas/electricity, i didn't realise my water temp had anything to do with it until I dropped it from high to low!!! now im paying around £80 a month! ((roughly $100)) a month!
I called on one of my credit cards… and they lowered my APR by 11% seriously worth it
In Ireland at the moment we're already in a pretty bad housing crisis, and we're now looking down the barrel of a fuel crisis which is having a knock on effect on the cost of living (in that we're all feeling the pinch, a lot, but unless you work in farming or transport it hasn't hugely affected anyone's jobs yet. Yet being the key word). I have no idea how a tiny country like us is going to cope in the coming years with all this slowly building
Been following for years and still love the content. I was only 13 during the last recession. My parents bought a house and sold at a loss 7 years later. Feeling grateful for the education offered now.
*ongelooflijk inzichtelijk kanaal. Ik zal voor altijd in het krijt staan, je hebt mij en mijn familie veel geholpen, je video's, advies en lessen zijn inspirerend nuttig voor ons,,Ik verdien nu elke week. Je bent zo'n zegen voor deze generatie, we houden allemaal van je*
Ik vind het niet erg om enkele ideeën te delen die me hebben geholpen.
Verstandig sparen is de beste manier om vooruit te komen en rijkdom op te bouwen, beleggen blijft een prioriteit.
Er zijn veel investeringsmogelijkheden (onroerend goed, aandelen, goud zilver, cryptocurrency)
Veel mensen haasten zich om te handelen zonder te weten hoe het werkt en het is heel verkeerd, ik zal je adviseren om met een expert te handelen
Ik ken iemand die je kan helpen
Verwacht Klara Moritz
*ze is bereikbaar op Telegram met de gebruikersnaam @INVESTWITHMORITZ.*
Thank you for this video TFD & Chelsea! I'd never faced a recession as an adult before so I've been panicking a bit, but watching this makes me feel more in control of my finances
Looks like my no buy july will turn into a no buy year lol
That makes two of us.
Same lol
I'm very lucky to be a millineal who owns a home. But even for me in the 2 years I've owned my home I have had so many issues and frankly disasters happen that we struggle and feel stressed 24/7. A tornado hit my house earlier this year and we are still struggling to get everything fixed. Despite having good insurance I will be out about 40,000 dollars in repairs after this. I'm having a baby in 2 months and between that and the lingering major repairs I am so worried about a recession and inflation because we've burned through emergency funds this year.
The only reason it hasn't been declared is politics. But, it's already been multiple quarters of contractions. We just haven't had significant layoffs yet.
Lost my job in August due to pre-recession layoffs. Having a great time already with finding a job with the same or higher salary- love it
This is a really hard time right now. I know I’m blessed to have a job but I keep being passed over for promotions and hate my company. I don’t make enough for afford a home where I’m at and my rental is no longer going to be available after the end of this year.
Video says, “Do not panic,” but here I am panicking by the end of the video. I’m tied with a few financial things right now that could blow in my face if I get stuck with them in a serious recession, so I better reduce, resolve, and plan now to alleviate my situation before going in 2023. And I’m getting a second job immediately this month to save more money.
panic productively. ;-) I can fully relate to having to restrain myself from panicking, and especially temptation to sell my portfolio at marginal profits and wait to 'buy the dip.'
I’ve been dumping all that I can into my emergency fund. My workplace has already done two rounds of lay offs and there’s probably another coming.
I've been wracking my brain on this as I've been looking to buy my first ever home right now. I'm one of the MANY walking wounded from The Great Recession, and while I am in a MUCH better place now than I was then, the memory of it still weighs heavily. The lesson hard learned was that I went from being financially set to scrambling within a matter of months, and it still freaks me out a bit...
If you do, personal experience advice from a townhouse and now a stand alone, have at least $10k for just random stuff that comes up as you get in. Even in "new construction" there are a lot of unexpected costs.
@@corrinagm483 Totally. The plan I have with my realtor and loan officer would have me purchasing and keeping about three months worth of money in savings which is a decent cushion.
@First name Last name I'm considering it but in what regard? If I were to purchase it would be in the next month or so. I know no job is 100% safe but mine is pretty stable so I'm not super concerned about that. And housing, especially in my area, shows absolutely no signs of getting cheaper so if I don't buy now it's probably not going to be any easier later.
@@ariwl1 That's nice they are giving you a realistic buying experience, instead of the, Oh but you'll have a warranty or Buy it's brand new! Nothing will break. The other thing to consider is take whatever the deductible for your home insurance is and put it somewhere (physically or mentally) that you will not spend it. We've been in our current house 8 yrs and it's on its third roof due to severe hail storms. The first one hit two months after we moved in. All stuff I wish I had known before I signed the paperwork.
@@corrinagm483 For sure. It's 99% likely I'd be buying a condo so HOA fees will account for some of that already. And I'm fortunate in that my realtor is a long time friend and she's SUPER professional and experienced, so she'd be beside herself if she let me get into a bad place, or at the very least would make absolutely sure I understood what I was getting into.
In trying times, you don't know what might happen and when you need money the most. Thanks for mentioning the importance of setting aside an emergency fund!
Millennial here, 31 years old, bought my first place 2021, needed every stitch of advice here. Appreciated the well rounded delivery 👍🏾
My modest long term investments lost 15% in the first 6 months of this year. What am I doing about it? Absolutely nothing.
Thank you for this video.
This is something that’s been in my mind lately and getting your advice and perspective is really helpful. Thanks!
+
On top of everything, student loan repayments are set to resume September 1st. We need a debt strike and we need it now.
I'm fully prepared to start paying them again, but I also am not totally convinced they'll actually let the payments resume at this time. I am expecting another postponement. Again, I'm prepared if I turn out to be wrong, but it would be such a silly move politically that another postponement seems likely.
Timing is everything. These markets have been in rally mode for about 2 weeks now, including up sharply today. I've been doing this a long time and basically I believe there will be a correction sometime in the future. However, as usual he old Wall Street adage applies, "Don't Fight the Tape" I went short about 1 week ago but Currently up 17% and being cautious. Still better deal than letting it sit in savings or checking earning near 0-1% interest. As one poster below states, the markets can remain irrational longer than you can remain solvent. Very true. But when it turns it will take everyone, including the piano player.....
Well up at 17% in this present market is impressive. I'll cherish the idea of being educated more on how the yield correlates with the market and inflation. If you could be kind to share some materials I can read, Will be much appreciated. thank you.
It's always going to be the same formula: be patient, make smart investments and don't get scared by the markets going down - this often comes with the best opportunities. We've seen worse times before, and we will for sure see worse in the future. Always be prepared to take advantage of whatever opportunity arises.
@@manueldonohue6732 I’m buying fractional shares of TSLA, AMC ,NIO ,NVR again. Before I was after dividends for passive income but it’s slow growth so i took my chances on high growth stocks and I've gotten a 120% increase this year but hopefully I’ll reach a million sooner
I just can't see how the Federal Reserve can fix the root cause of the inflation. The Huge increase of the M1 money supply. If they pull that easy money out it will crush stock values, home values and corporate profits. This will hurt the top 10% the most since they have benefited the most from this free cash.
As a single parent the last recession I didn’t feel the recession that much due to my job being an essential but I fear I may feel it this time around.
Good video. Thanks. This gave me reassurance, good tools and calmed my mindset.
Great video as always Chelsea. You really made me think about how important an Emergency Fund is which is what got me started on my budgeting/ Youtuve journey. Thank you✨💜
Maybe I'm currently out of touch on this but HOW are we able to lose jobs right now when "no one wants to work"? People have been urgently hiring for a while now and it baffles me that we will 100% be losing jobs in this recession as well. Make it make sense.
Because companies are making less profit, some will have to lay people off to save money, whilst other companies will dissolve completely: the total number of jobs in the economy will fall. The “people don’t want to work” rhetoric is false and based on the fact that people were quitting low wage jobs in search of better paying jobs, but those will soon become few and far between
@@robyn6454 it's so tiring, being kicked when we are down financially, politically, health-wise, etc. And yes obv the "no one wants to work" rhetoric is false I just didn't know how to rephrase the labor shortage. It's just because companies refuse to compensate their workers fairly
Uh people want to work in jobs where they can afford to live and pay rent. Nobody wants to work a job that requires them to work 3 just to survive.
@@jasminewilliams1673 look at my reply to the other comment, im well aware that jobs are not serving us as well as they should be
Thank you so much for the advice!
I was able to get a lower interest rate on paying off my credit card.
I was able to pay it off today with a bank loan with a lower interest rate fee 16% than my credit card interest rate of 18%.
I hadn’t heard this information since almost 3 years ago from another financial advisor. Thank you for reminding me to try again. I needed
the reminder since I wasn’t able to get approved for a loan 3 years ago thus paying almost $100 monthly on interest rates but i wanted to pay off my loan quicker not knowing how to.
Graduated highschool in 06. Just graduated college. Gonna let the Fed know if I ever decide to pursue grad school.
lol
Thanks so much for the practical advice! I appreciate the encouragement and insight you give on finances - from a fellow female entrepreneur! :)
thanks for this video it's very reassuring for someone like me, got laid off from my corporate job last week, reason: recession 😭, the company has offered a transfer to a position paying me way less but I don't know what to do, I rather have something solid and barely make it paycheck to paycheck, some advise is definitely needed in this hard time for sure
Tough to hear they want to let you go at your current pay but can have a lower paying position....which is code for more work for less pay. Companies should give severance pay & be quiet
Sorry you're in tough times right now. I can't say what the best thing to do is, but if it were me I'd likely take the job that's there and then look for something better elsewhere. Good luck!
Find a job with a different company. If you take the lower pay, the company knows they can keep your pay low forever, and they're going to to use your knowledge from your previous position to their advantage. From your employers perspective, you obviously don't "need" a higher pay rate if you are willing to take a lower one. So spruce up that resume and find a new job!
Take the other position in the mean time while you find something better
Negotiate the terms of the new position. Can you work fewer hours per week, as well as work from home, if possible? You will need those precious business hours to focus on your job search.Working on your resume in the evenings/weekends is the worst. And responding to job opportunities while people are still at work is so much more effective.
great video!!! this definitely helps, and i appreciate how you took the anxiety out of the threat of recession
Thank you for this, Chelsea! I've seen other videos about the upcoming recession, and yours was probably the one that gave me most calm and the advice was more on point for my needs. Cheers from Panama! 🇵🇦
Not so fun fact: my investing portfolio is counting 50% loss since pandemic started. But, as I was always investing money that I do not need in a short term, I am not worried.
I am not counting retirement fond because I am living in Germany. We all (with a few exceptions) have retirement set up automatically and have no influence on that money. You can’t lose your retirement money.
As usual, the Germans have a sensible system in place to look after everyone. Hats off!
@@Sky-Child there are pros and const to every system. And there are things I disagree with the approach.
But health insurance and retirement fund for everyone here is really amazing.
Just few days ago my health insurance company called me to inform me which regular checkups I shall start doing now as I am in mid thirties. And to explain what they are covering. THEY CALLED ME. I did not have to fish for that information.
As a foreigner living here, I was really surprised.
@@sophianachtigall3598 that clever of them because preventive medicine is cheaper !
@Sophia as a fellow German I have some thoughts on that: please inform yourself about the retirement fund. It is likely going to crash due to the ageing society and more people being retired and less people paying their retirement. It is not like your retirement payments will be locked away and be given back once you are retired. Please make sure you also save up for your retirement on the side, because more likely or not you are not going to survive off the government retirement checks you’ll receive later on
@@LittleLady178 thank you for this. And you have similar opinion as my account. I am hoping for the best with my retirement plan, but this is not the only plan surely.
I am the one who quit the job last week, working my last two weeks. However, I must say that I had side jobs and projects that get me into pretty good position while I am looking for something else
Never, ever co-sign on a loan. If the bank or lending institution wouldn't issue the loan, why should you? If for some reason you do want to help out, or think they will pay, you're better off just lending them the money yourself. As a co-signer on the loan your credit score also takes a hit when the loan isn't paid on time and after a period they can go after you for whatever wasn't paid.
Agreed. If a bank with extensive financial resources won’t risk it, you probably shouldn’t either unless you have the means to take over payment if they don’t pay.
@@Victoria-ot5om And even if the borrower does pay, it may mean something like the amount being paid is excessive. My parents cosigned on a car loan for my brother. He did make all his payments on time, but he also massively overpaid for the car. They should have gone back to the dealer and said no, we'll only pay what the bank will lend, or something less.
I paid off some credit card debt a few years ago by transferring the balance to a a card that had a no interest period for a year. Bank of America (and likely other banks) regularly offers balance transfer promotions in which you can choose to transfer your debt to a card with:
1. 0% interest for one year (then the regular rate applies after 12 months)
2. 1.5% (or so) for a year and half (then the regular rate).
I chose option 1, knowing it would take me a little over a year (~14-16 months) to pay off the card. Even with the small amount of interest incurred over the last 2-4 months, it worked out that i would pay less over time than using option 2. However, if I had had more debt, it might have made more sense to choose the option with the longer period of low interest. Either option can be a great help for paying down credit card debt.
A revolving door of 0% cards for years cause of the signing bonus (free money).
I did this cause my dad was backing my loans and he had a really good credit score.
Yes TFD! Time in the market > Timing the Market, I just needed to think that I'm buying investments I normally would, just at a discount 😄[you know rather than the deep existentialism of living through two recessions before being old enough to rent a car]
🤧🤧. 1st time dealing with recession myself, I was in highschool when recession occured....
I have no savings yet and no investments cause still a student and my fam ain't doing well with finances... Will try to save an emergency fund for upcoming recession, cause if US has it.. Then the whole world will be affected in some way.
Note: I am living in Asia 😊
High inflation does not mean stock market was always under performance as of today there has been a spike in the stock market since the fed announced interest rate hike, and to the contrary previously the stock market did reasonably well when inflation was higher. Just speculation but every move typically retraces, Good news is the overall market is close to -3 deviation so it’s either about to improve very soon or really really go down a whole lot more. The question now should be (1. Are my Investments stable and secured? (2. What will be the state of my investments if the worst chose to happen now? (3. have i achieved my Financial goals?
The logic behind this questions looks solid. I miss reading positive comments with catching interest due to high rate of bots. How did you have all this planned out and what's the success rate so far?
@@donaldlocher2537 I Understood all this because i have been in close contact with my my Financial-Advisor ' Susan Kay Mack" over the years & she made me understand that strategy is the key during this tremulous time. She is quite the genius in portfolio diversification.
@@ericwilde4583 i just looked the web for her now.....i appreciate sir!
I did read about Susan Kay Mack on the web, I was able to find her webpage and leave a mail. I'm willing to make consultations to improve my portfolio
Great video and gosh, what a lovely blouse 😍😍
Thanks for the great advice. Most should be done recession/depression or not.
2008 was bad. I remember it really feeling like the end of normal.
Come for the recession tips, stay for the fishbone styled necklace (no shade, I think its cool).
The comment sections for this channel’s videos are particularly rife with multi-account bot threads. Given these are educational videos, would it be worth putting warnings out about these? Pinned comments, etc?
One thing that wasn't mentioned here in regards to debt during recession Is that you can declare bankruptcy if you find yourself unable to pay the debt back, I declared bankruptcy and they cleared me of all my debts without having to forfeit any of my assets it was the 1st time I've ever declared bankruptcy
Without having to forfeit any assets? Many aren’t so fortunate, but you’re right to say that it sometimes should be on the table.
@@alexc2265 I think it's because I had few assets to begin with the only thing of real value they could have taken from me was my car and my computer, Other than that they would have had to have taken my gee hundred dollars I had saved up, my bed, and the clothes off my back.
So I think the less unnecessary asset's you have the more likely you will get off like me.
But that's just a guess
@@alexc2265 highly unlikely that one claims bankruptcy while having assets in their name..
@@teresateresa8933 People do it all the time. It's not at all unlikely.
@@thatjillgirl what bank allowed this and what assets were you allowed to keep?
This is also why you vote to support a social safety net!!!
Thats a pipe dream for the US lol
Another excellent video! Thanks C!
I was a couple years out of high school when the first recession hit. Always knew a second one would happen eventually.
I understand this is important content and you are being helpful, but it feels an awful lot like hearing advice about carrying a pepper spray in your bag and learning self defence to avoid being harassed/abused. Like we can do our best and still fall victim and there will always be that girl who forgot the pepper spray and isn't physically strong and she doesn't deserve any of this. There is no collective winning under our current economic system and it shouldn't be on us to prepare pepper sprays for the bears to come.
i hope more of us wake up to this
I think this is a fair criticism of this particular video, but also, I think TFD does a good job critiquing the failures of capitalism in other videos. They have made their political stances clear (Chelsea has mentioned being a card-carrying DSA member multiple times), and gives tips for living in an undesirable economic situation while acknowledging that things are shit. TFD is saying "the house is on fire, that's bad, this is how you protect yourself," and your comment is coming across as "why aren't you talking about the house being on fire??" We know the house is on fire, but we still gotta made due with the current situation.
The thing about recessions is that they do not effect everyone the same way. You don't know if you will take a hit or not. The video is more of the old Scout motto: Be Prepared. On the other hand - if you are in a job or career that is strongly effected by Recessions (no matter what area of the economy the Recession hits) then it is VERY important to Be Prepared. You "know" with some certainty that you will be effected no matter what. I managed to avoid any bad outcomes from the Great Recession thru perhaps pure "luck" - I didn't loose my job (I did loose 2 years of raises and bonuses), I had bought a house 10 years before the bubble pop, and I had been working on getting financial ducks in a row in the 2 years leading up to the Great Recession (so I had cut the fat out of my spending, was more thoughtful about my spending, had bumped up my retirement savings slowly but surely, etc...). Some of my neighbors weren't as lucky - they lost their job or house (sometimes both). I suspect I would have weathered the storm even if I wasn't "prepared" financially - due to that "luck" thing of not losing my job and having a house i could easily afford - but I think I would have been much more stressed out. Because I was more "prepared" - I was contributing to my retirement accounts (buying on "sale"!!!) and because I was very familiar with my finances - I knew where I could cut back if I had to, or if I did loose my job I could get by for 3 months (maybe more) No matter what outcome I got from that recession - being Prepared meant it would less chaotic/stressful/drama filled. Since I wasn't strongly effected by the Recession and Prepared - it meant I came out the other side with "fatter" retirement accounts and bank accounts - and all I did was "hold the line" I stood there and did nothing (well, I did what I had been doing right along - I didn't change anything. I was prepared.)
TLDR; Being Prepared - even if there's a bad Recession outcome it may be better than NOT being Prepared. Being Prepared - even if there's a good Recession outcome it may make for a much better outcome than NOT being prepared.
@@beckymartin4658 I’ve been a subscriber for years, i know her political stance, this wasn’t personal criticism… But I don’t think it’s fair to assume that “we all acknowledge that the house is on fire” of all ppl watching the video, that they all know what she said in previous videos, that they all share the same perspectives. Instead of reading my comment as a personal critique of her, you can just read it as a valid reflection, although it might not be that unique.
@@daydreambee Sorry, bad things were happening this morning to me when I wrote my reply, and it wasn't very kind or charitable. I apologize for my phrasing and if it made you feel invalidated. I should strive to be better.
As a leftist, I think there is value in having conversations about "existing in a house that is on fire" without getting bogged down in the political nuance each time about the source of the fire or how to stop the flames. The latter conversation is *very* important, and I do not want to take away from that. That being said, until the glorious revolution comes, we still need to exist under capitalism, where fire is constantly burning and once-in-a-lifetime economic downturns are happening every decade, and having tips for that is nice.
I genuinely hope you have a good evening
Great information, I admire your optimism. I feel like things are going to get worse for the US economy and stay that way for years or decades before they get better. Our massive national debt and never-ending conflict with other nations are bad omens of the future.
Not me giggling at a bear market bottoming 😂
Wow 40% of co signings have to help pay on a loan ... that’s a striking stat
Well usually people need someone to cosign because the numbers don't add up for the creditor.... So makes total sense that most of them can't pay
This is why my co-signed student loan was the first one I paid off. I hated the thought that something would happen to me and my parents would be on the hook for the money.
I’ve been looking at house prices for a few years, and watched them rise and rise. Then in the space of a few days watched them drop 100,000 dollars.
There was a point where, in my area, they were trying to sell a caboose for near 100,000. A bit insulting, and depressing.
I wanted to buy a place in a few years and I almost feel bad that my parents lost basically everything in the last recession. All their savings, which never really recovered, my father couldn’t continue his millwright license because he lost his job and still works weeks at a time out of the house.
Instead of having to move 3 provinces over for anything in my reasonable price range I might be able to find something reasonably close to my family, which would be quite nice.
For the "Don't sell your portfolio" rule, I'm going to use an analogy from my father (that I've shared in a different TFD post):
Investing is like riding a roller coaster; don't get off the ride just because it's going down
wonderful tips and information, thanks for uploads :)
It’s a pretty shit time to be young haha. This is the second semester where I have to live 200km away from my uni just so I can live with my father (since the market is so terrible). Thank god for the internet
I'm so glad your channel exist. I was looking for tips on how to handle a recession in personnal finance and all I could find was old white guys advising to buy stock and invest.
I mean she kind of said the same...
Thank you for this! This feels like a hurricane preparedness PSA, and I feel more clear-eyed after watching this.
'investing over decades...."....... I don't know if our democracy will be lasting decades
I was fired an year ago (st 55) so I'm living on my savings, while job searching. Inflation is sky high.
Nice 😉
ive been planning to move abroad to study a masters degree, but now i'm not so sure. does anyone have a suggestion about it?
Go somewhere that has free education and where you know you can speak the language and find a good job. Scandinavian countries like Sweden will often pay YOU to get an advanced degree.
Depends on where you were planning to go. In some countries, students have low or no tuition and may be given a small stipend to live on while they are in school, and if that's the case for you, I don't see any reason not to do it now. But if you were planning to go somewhere that would require taking on debt, it may not be the best option.
Come to Scotland!
It must be nice to have an emergency fund. Every time I have been able to save a few thousand something comes up and drains it. It's so exhausting!
Well, i had instances where my Investment was decreasing in value and I had to take it out. Some Investments never repay their value, so no needto be rigid about sunken costs.
Honestly, I usually buy a stock and then don’t check on it for awhile such as a year and go look at everything that happened to it and buy another. It’s good to just leave your stocks in the back of your mind
Oh good, another recession. I didn't ever want to retire anyway. *sighs in baby Gen X*
I just try to grit my teeth and keep my eyes off my retirement fund during recessions so I don't cry.
Yeah. I've managed the emergency fund and I contribute to workplace and government retirement plans, but honestly, me even getting to retire is a bit of a pipe dream. Edited to add -- ditto to the baby Gen X bit. Sighs all around.
Oh boy did the music stop in 2008. I was just graduating uni and there was nothing for us, I think a lot of old ass millennials haven't fully recovered from it yet.
Like, the music didn't just stop, there was an awkward silence punctuated only by the sound of someone throwing the tuba off a long cliff and hitting every rock on the way down. Do not recommend.
Since I was 10 during that time and living on the opposite side of the world, could anybody point me to a resource that explains the recession and the effects of it on the ordinary people/millennials in simple words?
This video is a great help, Chelsea. I am prone to go into high end spending at a whim, even if I had saved enough over the past months. Thank you!
Where is your fish necklace from?
4:30 until the first tip
What about if I'll potentially need the money from my stocks in the next year or two to buy a condo?
Any thoughts on retirement during a recession
If you're prepared for it, it seems like the perfect time to retire IMO. Several of my colleagues retired early in the pandemic, for instance, and not one regrets it now. Aside from not having work-related stress (or costs, because simply being employed is expensive), rising interest rates can actually benefit people with savings and investments. That said, if you're not financially ready for retirement or lack stable housing, maybe it's better to dig in and hold on?
Edited for spelling, because my phone mocks me.
Come on, fellow millennials. This is our third recession. We've got this. >_
It's my first one supporting a family of five 🤦♀️
@@elisabethscott20 My condolences.
Graduated college in 2009, only had one kid. Never want to be as desperate as I was in 2010 ever again.
@@ladyeowyn42 if you could make it through that, you can make it through this. Best of luck to you!
Thank you so much! I really needed to hear this right now.
Chelsea, If you don’t tell us where you got your blouse I’m boycotting your channel. J/K. I asked you the first time your wore it. I just ❤️ it. It’s beautiful. I truly enjoy your videos.
Would the plan of going to grad school next year be considered a bad decision if I’m trying to pivot into a career that could pay more as their baseline than where I currently am? Going into a recession, would this be disaster out if I took out loans for this; as I was thinking of the long-term career-wise without thinking of the economic situation at hand
Are you going to be going to grad school part time while you still work? That is what I’m doing and I have money saved up to avoid debt. I’m going to continue working though and am choosing a state school that is not too expensive.
I graduated soon after the 2008 recession, and it took over a decade to get back to the point where I finally felt that maybe I had a good future after all. So I went back to school and am going to graduate soon after another one. Maybe I ought to consider the career choice of Eccentric Witch who lives at the edge of the wilderness and dumpster-dives for food.
I just started grad school this semester! I am still working fulltime, but I think working on new skills during a recession is PERFECT!
This is very random and is meant as a compliment but I feel like you look like you would be in an episode of scooby doo