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Unfolding Nature Shop: Unfolding Nature: Being in the Implicate Order

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What effect on the smart guys.
    #9862310 -

This downturn. The guy/gal who isn't in debt and has some reasonable savings and lives within their means. Lets say this all lasts up to ten years.


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"Don't believe everything you think". -Anom.

" All that lives was born to die"-Anom.

With much wisdom comes much sorrow,
The more knowledge, the more grief.
Ecclesiastes circa 350 BC

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Re: What effect on the smart guys. [Re: Icelander]
    #9862514 -

Are you asking a question or making a statement? :grin:

I have zero debt, a fair amount of savings and am quite prudent with my spending (except when the Grateful Dead are on tour! :wink: ).

However, this economic downturn has still had a noticeable affect on me.

I run my own business and a supplier has declared bankruptcy causing me to lose up to $20,000 of deposit payment.  They have stated their intention to make good for me by brokering my production with another supplier when they make their own order to help restart their business, but what was ordered in November 2007 and was supposed to be delivered by March 2008 is now a year overdue and will be at least four months out from this point. 

Barring supply troubles, demand is also down huge.  Where I had been taking in a consistent $7-8K in sales each month, I am now lucky to take $2K (of which 40% on average is profit).  This is in part due to dwindling inventory; being sold out of a couple of my most popular products.  But it's also because people just aren't spending as much money on high ticket discretionary items.

I am responsible for renting eight units, which has shown some payments coming in a little late.  But even when I had a vacancy last October on the largest unit (a house), I had a huge number of applicants immediately after listing and had it re-rented within the month.  I believe the rental market will stay strong as people are either getting kicked out or afraid to be buying houses in the immediate term.

Lastly, my investing activity as evidenced through my STOCKS thread has obviously lost me some money.  But I went into that knowing full well my risk tolerance, so though it still sucks I was prepared for the potential losses that have been incurred in that arena.  In fact, this downturn has proven to deliver some positive inspiration.  In keeping my finances straight over the past decade, I feel that I am in a unique position to take advantage of opportunity (particularly in the stock market but also in business), when the economy begins to show signs of renewed vigor.

Still no debt.  But I have been making conscious efforts to moderate my spending even further in accordance with my reduced immediate income, despite having enough savings to last me several years without work.


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┼ ··∙   long live the shroomery  ∙·· ┼
...╬π╥ ╥π╬...

Edited by geokills (02/25/09 12:47 PM)

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Re: What effect on the smart guys. [Re: geokills]
    #9862606 -

I have debt - about 150k.
Right now my biggest issue is student loans, because my private loans are on a variable interest rate. Sadly I can't get a consolidation loan with no lenders lending, so I'm kind of eff'd. Otherwise, my credit is locked in at a low rate.

I've almost gotten my credit cards paid off, and once that's done I'm going to start working my way up by interest rate through each type of debt (credit cards, then car loan, then private student loans, then federal loans). It's going to take awhile, but its what I've got to do.

To increase income I'm working on starting a side business, plus I'm doing everything I can to raise cash.

Luckily with all of my interest rates locked in to either the current rate or into a small range, and a secure job in medical, I feel somewhat prepared for the coming times. I still am trying my damndest to get my debts paid off before they hit.

As for savings in bank... well, what savings in bank? I have none. So losing it won't mean a whole lot to me.

I'm getting a garden together just in case :smile:


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You can turn your back on a person, but never turn your back on a drug, especially when its waving a razor sharp hunting knife in your eye.
Hunter S. Thompson

Edited by wiggles (02/25/09 01:08 PM)

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Re: What effect on the smart guys. [Re: geokills]
    #9863934 -

OK I'm retired and didn't lose any money in stocks having it all in govt securities.

I really don't notice this economic downturn in the short run at least and was wondering if I was missing something.

Actually it's a great time to be out of a job IMO.:lol:


--------------------
"Don't believe everything you think". -Anom.

" All that lives was born to die"-Anom.

With much wisdom comes much sorrow,
The more knowledge, the more grief.
Ecclesiastes circa 350 BC

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Re: What effect on the smart guys. [Re: Icelander]
    #9865246 -

The recession has been great to me so far.  Prices (especially fuel) are down.  I had enough savings to take me between jobs (though I even managed to find a nice part-time job between full-time jobs).  And my debt load (which consists only of student loans) is very small. 

I'm using the slightly lowered costs of living combined with a constant income to further increase my savings and pay down my debt even faster.  If all continues as currently, I'll be debt-free in 6 months and have a substantial savings set aside.  The only evidence of recession I've seen is that my CA state income tax refund is going to be way late.  But that's mostly not recession-related I suppose.

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Re: What effect on the smart guys. [Re: ChuangTzu]
    #9869352 -

Good news!  So really this needn't affect me much at all. That's good because I'm sick of hearing about it.

In fact it's hard to remember any recession ever having any effect on my lifestyle in all my almost 40 adult years.

Seems to me the only people who really get effected are those that live on the edge and can't get it through their thick skulls that things change and go in cycles.


--------------------
"Don't believe everything you think". -Anom.

" All that lives was born to die"-Anom.

With much wisdom comes much sorrow,
The more knowledge, the more grief.
Ecclesiastes circa 350 BC

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Re: What effect on the smart guys. [Re: Icelander]
    #9871664 -

For anyone in a cash rich position this is what you can call a buying opportunity.  People who were saving to buy a house but hadn't jumped yet have just seen the pool of possible house purchases increase enormously.


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Re: What effect on the smart guys. [Re: zappaisgod]
    #9875539 -

Actually I'm thinking of buying another house and then selling my current one when the values go up (in 5 to 10 years). Until then I can use it as a rental.


--------------------
"Don't believe everything you think". -Anom.

" All that lives was born to die"-Anom.

With much wisdom comes much sorrow,
The more knowledge, the more grief.
Ecclesiastes circa 350 BC

Extras: Filter Print Post Top
Re: What effect on the smart guys. [Re: Icelander]
    #9877749 -

It affects people to different degrees (obviously).  I've always lived within my means and saved relatively diligently.

Right now though, I'm attempting to gain employment, so the recession has limited my opportunities.  However, if I manage to land a job, I will have disposable income to invest.

Gas is down, hell I don't see how people remain completely unaffected, if even a few bucks at the pump.


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...the whole experience is (and is as) a profound piece of knowledge.  It is an indellible experience; it is forever known.  I have known myself in a way I doubt I would have ever occurred except as it did.

Smith, P.  Bull. Menninger Clinic (1959) 23:20-27; p. 27.

...most subjects find the experience valuable, some find it frightening, and many say that is it uniquely lovely.

Osmond, H.  Annals, NY Acad Science (1957) 66:418-434; p.436

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Unfolding Nature Shop: Unfolding Nature: Being in the Implicate Order

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