Economic Depression and You

Anyone want to bet on the economy? Anyone?

Funny thing about economic downturns. The kinda sneak up on you. We tend to think the start of the last major depression coincided with the collapse of the stock market. While in hindsight that was a major turning point, the average Joe at the time didn't feel it. Some folks were impacted right off, but others didn't feel the pinch for a year, two years or even longer. A minority actually prospered.

Even most of those who lost big didn't get feel the full brunt of the downturn immediately. It took some time for savings to be exhausted and debt collectors to catch up. Some folks limped along for a while selling hard assets at fire sale prices. There are families who's tales of the depression are about how they had to let most of the servants go. Yeah, times were hard on them.

There are a couple of ways to deal with a downturn in one's economic situation. One is to limp along trying maintain as much of the old lifestyle as possible. Middle class people will probably try and do that by living on their credit cards. The idea is that when their situation improves they'll make good on all that debt.

Another method is to not wait for things to get better. Instead you assume things won't, at least for a long time. With that in mind a person's lifestyle is ruthlessly cut back. Expenses are reduced to reflect one's downsized income.

Personally, I've used both methods at the same time. That's not something I recommend, but I had some reason to expect a monetary settlement that would eventually cover most of the debt. While it worked for me, it was a near thing. The stress level is pretty high so if you can reduce your expenses and still live a reasonably comfortable life, that might be better.

Most people think they are in pretty good shape if they have the resources to survive a year. Yes, that's good, but economic depressions don't last just one year. If you can radically downsize maybe that cushion can last much longer. The time to prepare for a down turn is before it really impacts you.

On a personal level I was fortunate that I had my own well, some solar electric power, and a woodstove. Those resources were extremely useful. However, after four years I was about to lose the house for nonpayment of the mortgage and taxes. Even if the house had been paid off, I would have been unable to pay the taxes. That's something to keep in mind. They will take your house away and put it up for auction.

Now is a good time to figure out how to deal with a depression. It might be a world wide economic downturn or it could be something personal like a job loss, medical expenses, or other problems like legal issues.

Don't let your problems pile up. Have a plan. The last thing you want to do is ignore approaching disaster.

-Sixbears

Emergency Pants

Finally, it was a sunny and warm day -shorts and T-shirt weather. My lovely wife and I had to run into town. It's about a twenty minute drive, with no traffic. There is never traffic. That's one of the perks of living out in the country.

Even on such a short drive I made sure I had a spare pair of long pants and a warm jacket. While it was warm when we left, this is the time of year when temperatures plummet once the sun goes down. Sure, we were only twenty minutes from home, but that's by car. Walking is a different story.

More than once I've broken down a couple miles away from the house. Living in the woods is great, but if you have trouble, you stand a fair chance of being on your own. Cell phone service is nonexistent the last couple miles. The last thing you want is to be walking home in shorts, in the dark, in freezing temperatures.

How many people make a big deal of having a bug out bag but lack decent clothes for a long walk in bad weather? They may take more care about their concealed carry piece than the condition of their walking shoes. Odds are they'll need good shoes and warm clothes more often than a handgun.

Maybe I think more about hiking back because I've driven so many junk cars over the years. Even new cars break down, and roads become impassable to wheeled traffic. Infrastructure isn't maintained like it used to be, especially in the country.

So . . got your emergency pants?

-Sixbears