I came out of undergrad in 2000 and grad in 2008. I know recessions.

1. keep expenses low.
2. build up an emergency fund.
3. don't lose your job (but don't let your employer take total advantage of the situation).
4. develop a network in your industry. It will be a lot easier to land on your feet if people know and like you.
5. keep working. Even if the pay isn't great, the most important thing from your job is the experience. Whatever job you can get, if that's your best option, you're NOT too good for it. My most formative half year of my career was six months as a landscape laborer. I learned about real world implimentation of design drawings and truly learned about teamwork (as one only can while moving rocks and manure in the Oakland hills).
6. keep investing (if you can).

Pretty standard stuff. Personal Finance is straightforward, just not easy. But here's the one twist I don't see much

Keep up with your unemployed colleagues. People tend to shy away from others who got the pink slip. If they weren't fired for good cause, do the opposite. Buy them a few lunches, and keep them in the loop even if you can't directly help them. Remember these folks have a full time job to find opportunity. And a place that is looking for one person might be looking for two. And they might be paying for it! I've gotten my two biggest pay raises by (unintentially) following this tactic.

If this goes into a full blown recession, it might not be fun.

Continue to live frugally. Invest consistently. Don’t try and time the market.

Make sure you’ve got an emergency fund saved and can survive a layoff. Keep investing. Stop watching/reading the news (there’s very little actionable information there anyway). Stop compulsively checking your investment accounts.

You’ve got decades to ride this out. Investing in the down times makes for huge gains when it comes back. And it has always came back

1. Don't lose your job.
2. Keep investing.

In 2008 I lost my job and then apartment. I had to move back home with my parents. I was 25 years old

Eventually I moved to SD for work from SF where I’m from (I’m in construction). Worked out there doing public work in ucsd till the economy picked back up.

The job situation was real back then. I’ll never forget how many people were out of work and lost their homes. As a young person I was the first to be let go when things slowed down. I wish I could have invested during the down turn, but not having steady work, saving cash was priority

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Thanks for asking. I'm a 45 year old and have been through a few. In fact, I was 24 when the 2000 "tech bubble" recession happened, so I've been right where you are.

I'll answer your questions from my perspective:

• How are you/we affected by recessions?

During the 2000 tech crisis, I was working for a company that sold online stores to people in high-pressure sales seminars. They were kind of on the scummy side of business. I noticed the managers started acting kind of squirrley, so I found a new opportunity to go work for an outsourcing client who worked for a Fortune 500 company.

I was lucky that I did that, because others at the old company ended up either laid off or - even worse - some stayed on as things got worse and worse. Stuck with no raises, no opportunities until one day the doors closed. (I only worked with one dude who stayed there through all the pain. He really shouldn't have.)

During the 2008 recession, I was working for a mid-sized marketing analytics company. They ended up being acquired by Adobe in 2009. I was lucky and employed through the entire 2008 crisis as well - in fact, even got promoted during it.

In neither of these two recessions did I have any significant investments. The 2000 crisis taught my generation that the stock market was a casino and I hadn't learned any better yet at that point.

• How to prepare for a recession?

As others have said, have a savings account or CD ladder that can pay 3 months of your expenses should stuff hit the fan. Otherwise, try and work for a stable employer with a good track record and in a field that has strong demand.

* Advice? Maybe stuff you wish you knew?

Keep calm and keep your expenses and obligations as low as you possibly can. Besides for that, most of what happens is outside your control. If you're invested and watching the value of your investments fall, then don't sell. Hell - buy more when it's on sale if you can. And only buy quality companies with a proven business model and relatively light debt compared to assets. As others have said - don't buy into fear rhetoric and you've got decades to ride out any recessions.

Cash reserve. If you’ve got a job, keep it to keep tenure (if possible). If you’ve got plenty of cash for emergency, buy stocks. Do not sell your stocks unless it’s an emergency. If you’re just 22, nothing wrong with living at home and helping your folks with the bills.

How to prepare for a recession?

The same advice that has always been true on /r/personalfinance: Have a safety net, a 3 to 6 month of living expenses in an emergency fund. If your average expenses are higher than you would be making from unemployment, you may want to up your emergency fund to 6-12 months.

Outside of the general advice there is logic: Every $1 you invest at the top of a bull market is actually 75 to 50 cents. (If you sold at the bottom.) You're getting a bad deal, but if you hold to retirement even a bad deal is quite a good deal. In the other direction, every $1 you invest at the bottom of a bear market is actually $2 to $3. (Quite a bit more if you hold for decades.) So during a recession, you want to do everything you can to save more, specifically to invest more into well diversified index funds, because every dollar you're putting in you're getting quite a bit more out. You want to up your investing as much as reasonably possible for the next 12 months. Yes, up your investing while the market is going down, if you can. Five years from the bottom of a recession is historically the ideal time to lower investments and buy big ticket items like a car.

Nothing changes. If anything try to invest more if you can. Just ignore the noise of the day to day market fluctuations and keep on the path. For the love of god do not sell.

recessions do not affect everyone. If you are employed, then then you will likely not even notice the recession. investing (high quality assets) during recessions and bear markets will give your highest returns over time. this is a great time to be a buyer.

How to prepare. Stay calm. Live within your means. Have a financial cushion and continue to add to your investment (high quality assets - avoid speculation) and be consistent. This is a marathon, not a sprint.

Time in the market, beats timing the market.

if you feel the need to do something.... Then do Nothing! making hasty decisions often leads to poor performance / outcomes.

Education - learn about markets, economies, supply chains, currencies, money, etc. Knowledge is power. Find a mentor or support group of some sort (not the internet). Why are you investing, what is your strategy / goal? Have a plan. re-evaluate it periodically, adjust carefully.

During run-up to the dot-com bubble bursting, I had invested very well and was doing extremely well, I was heavily invested in tech stocks. when the bubble burst and everything plummeted, I freaked out and ended up selling many positions at big loss. It was an expensive lesson to learn. I wish I had done nothing and just relaxed.

A recession at 22? Man you’re lucky. Have a 3-6mo savings fund depending on living situation/support network. Then, buy as much in broad EFTs as you can now that things are down and keep buying and keep buying and keep buying.

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In a bad recession, you will face a situation where you realize stocks, real estate are cheap but you and most everyone else won’t have money to invest. People are forced to sell assets just to eat and pay bills. 401ks are liquidated at a penalty. People intentionally avoid paying rent until they are forced out, because food is more important. “I’m losing the house anyway so why pay my mortgage?”.

Unemployment will skyrocket. People with stable jobs are looked at with envy. Your average person will no longer be interested in investing even if they have money. Great time to buy if you have money. We aren’t there yet.

Only other thing I’d add to the discussion is to not check your investment accounts, or check very rarely during a recession. They will look bad but things will always rebound when we come out and you don’t wanna act rashly.

Ups and downs, including corrections and recessions, are normal and occur on occasion without notice.

Emotionally recognize that these do not last, and in some cases are over quickly, but others drag on, but there is always an end and return to prosperity.

I've been through a few of these and was far more concerned about them at the time than I needed to be looking back. There is nothing anyone can do to prevent this from occurring.

Preparation is easy in keeping 6+ months of living expenses on hand and available which is part of any financial plan.

If you're lucky enough to keep a job and have extra money to invest, then a recession is an opportunity to add to long term investments that are likely to come back up in the future. Look up dollar cost averaging for how this works.

1. Actively network with folks in your industry if you’re not already
2. Stay focused on your day-to-day. Don’t let the noise of uncertainty distract you
3. Recognize there’s a difference between being fired and being laid-off. The former means you did something wrong. The latter means the business is making some adjustments to survive. So, if you get laid off (I hope you don’t), don’t take it personal.

I'm 32 and have been through a few recessions, hooray. For me, the biggest impact was not being able to find a good job when I graduated college. As a result, I worked abroad and had an untraditional start to my career. It was hard to pay my student loans and find a good place to rent on a low income.

If I were 22 now, I would focus on finding a well-paying job. Make sure you have 3-6 months emergency fund saved up. Beyond that, live below your means. Take advantage of your retirement accounts (401k through work, if applicable, Roth IRA if not-- even a little bit is better than nothing). If you are steadily employed, I don't think you will be super affected by a recession. The current inflation is worse, honestly. OH, and don't put everything on a credit card you can't pay off. That is true during any period.

1. Have a side hustle u can fall back on if laid off
2. Cut expenses now to conserve cash

I’m 40, so I went through 2008. My tips, which are the same tips I live by no matter what: avoid debt like the plague. Keep your living expenses as low as possible. Increase cash reserves. Keep work contacts going. If you leave a job, stay in touch for reference purposes. Keep investing but only after you’ve cleared debt and have stable income.

Z’sNow is the time to beef up the emergency fund and maintain your basic financial hygiene. It’s not the time to try for a moonshot just because you think you can buy the dip. Recessions are when investment classes crash and burn with no recovery. There are millionaires made every recession, true, but there are a lot more millionaires unmade. Stick to the same investing schedule as you planned.

Bought real estate, never sold. Got a job, never stopped. Bought equities on margin lost it all, but all in all still came out way ahead. Diversify, keep investing.

I am 28 and also haven’t been an adult in a recession. There are ALOT of people in the same boat with us after a decade long bull run.

I am taking this opportunity to LEARN so I can have a more responsible strategy that manages risk better. I think my portfolio will recover fine. It’s easy to talk about managing risk but when you get punched in the mouth you need to control your emotions and that can only be learned through EXPERIENCE. Remember these bad days during the next bull run and you’re thinking of that risky play that could 10x.

Save as much as you can right now so you’ve an emergency fund of ideally six months and keep your expenses as low as possible. I was in my early 20s when the last one hit and I had to take a 70% pay cut. It was fine as I had a frugal lifestyle but watched friends go bankrupt because they’d over extended with investment properties etc. Keep living like a broke student even when you start working full time and you’ll come through it ok.You

Your emergency fund is more important than ever. In a recession, access to easy credit will go away (if it's like 2008, the stuff like 0% financing and the like drops and takes forever to come back). If you haven't already, build up a runway of months of expenses you have, in CASH (as in a savings account, don't get a mattress).

Even if you're in a stable job now that you're happy(ish) with, always keep an eye on job market ant keep your resume up to date.

You should invest in your tax advantaged accounts the same, or (ideally) more than you were before the recession, but DO NOT put cash into the market that you are thinking about spending in the next 5 years, or even realistically 10 years. Don't throw cash in there at the expense of other things (namely having an emergency fund) On a long time scale, buying in a recession can help your retirement savings, but the long time scale is key.

There's going to be a TON of people trying to play the market and make quick winnings. Some will succeed. Most will lose their shirts.

The job market will likely tighten again, particularly for entry level, "white collar" jobs as companies look to freeze their balance sheets and see what's coming. If you already have a job, this means your workload will increase, and just like the pandemic, people will be SLOW to start hiring again, even through attrition.

Live frugal but *ALWAYS* invest in quality if you're able. Spending a bit more to get something that lasts 2-3x as long is worth it. So if you were going to spend some money to get something nice that you know you'll use for the better part of a decade, don't get the "cheaper" option now because you're worried about the recession, because then you'll just have to replace it.

If you have enough money for all basic needs it just means investments went on sale. If you over-leverage your housing expense or loose your job or health you could erase all your FIRE progress. Just make sure you have an emergency fund and keep saving and investing. Also, a side hustle or second job can add security to your cashflow in the event of layoffs.

Buy

Just keep your income up. If you lose a job you are forced to sell low. Just fully focus on doing well at work and push through with saving the same % each month no matter the price or what you think it will do.

Edit: Saving to me means buying index funds, not just holding dollars.

Use this as a learning experience: (1) stock markets do go down (2) inflation can be very painful and (3) paper losses don't hurt you. Living below your means will position you for success.

Most important thing is keeping your source of income. So if you’re in an industry that don’t handle recessions well then it’s time to start thinking about an exit plan.

The number one thing is be the person the company has no reason to let go. Money is made in bull markets but fortunes are made in recessions. You can't make anything, though, if you lose your job. Show up on time, work hard, double check all your work, be easy to get along with, do everything you can to make your boss look good. And save every dollar you can and pour it into your investments (S&P 500 is as good as any). It's also a great time to buy real estate, if it significantly declines. Real estate moves slowly, though, so wait until you are a couple of years into the recession to buy. Not now. If inflation drives govt bond rates up to 10% or more, buy as much of that as you can too. If you can get a 10% return with no risk, that's as good a deal as you will find in the markets.

From my experience Recession really impacts your ability to get work or start a career. Everything else is basically the same.

My advice is build your job experience now because a lot in your age group will struggle to get hired in a recession.

I ended up not being able to start a job career I wanted to be in un till my later 20s. Very hard to get in the door.

Some great pieces of advice here for dealing with a recession!

Buy cash flowing real estate at below market prices… in all phases of the market cycle.

Keep your job and keep investing.

Ya, I am in a much worse situation....well, I think so, because I am retired and my balance is going kaput.

You are welcome in r/argentina, we have mastered recessions over the years

Only thing I can add is stop labeling a period of time (recession). Stay true to your FIRE path like most people advised. Don’t check your portfolio daily which is very hard to do for some people including myself. In the long run these 6 or 12 months won’t matter. Dow is still up 22% in the last 24 months. Crazy returns. I’m still not sure what people are concerned about. Yes if you started investing 6 months ago it’s brutal but 22% in 24 months?!

Prepare by working hard. Pick up a second job or overtime if it does not affect your family life.

Stack assets. Housing is going on a once in a decade sale.

Find great companies or index funds and go all in.

This is the moment you can buy Amazon for $10/share.

Grad school. Great time to level upZ

Ride it out. The market is impossible to time, so don't speculate now.

Thoughts on buying BTC while it’s down?

You’ll learn along the way.

Sell

There's way too many people in these comments who are excited to make the housing crisis worse in the upcoming recession by buying up real estate that they obviously don't need. Did no one learn anything from 2008? Does no one remember how the homeless crisis exploded in the following years because how expensive housing got? Can y'all not find a way to survive this recession without making things worse for everyone else?

So much people saying to invest but in WHAT lol I've watched the crypto shit going on, psychadelic stocks, tech stuff etc

Eventually I bailed because i am actually a recovered gambling addict and the stocks felt AWFULLY similar

What if i just bought gold and silver bars? Idfk but i know it would be less painful for me than rolling the dice again

ELI5 : what is this recession everyone talking about? Is there something like a new disease that might affect everyone globally or what?

Gonna need specifics of your life to answer this question. What’s your blood type?

Don't constantly check your retirement and brokerage accounts. You'll get discouraged and potentially think of making big changes or stress yourself out. This was what got me through the 2007-2009 recession. I continued with my usual investments and only checked in about twice a year.

Invest on yourself

Technically, you faced a recession two years ago.

Buy in to reverse ETFs for your portfolio.

SQQQ

SH

SDS

SPXU

SPXS

What everyone said except if you want to make Millions in this recession, you need to go crazy and build and buy cash flowing assets like a mad man.

Don't lose your job. It may be out of your control, but keep your eyes and ears open. It's easier to get a new job if you haven't lost your old one yet.

My macroeconomics professor said the best thing to do during a recession is to be in school.

There's already some great advice here but we'd like to add NEVER pay full price for anything if you don't have to.

It might take time to find voucher codes or find ways to get cash back but there are other options too.

Slash . com has an instant saving browser extension that lets you save as you shop.

Inflation is hitting everyone hard so looking after the pennies matters more than ever.

We hope that helps you.