2008 crisis to this age crisis

Posted in:Money

Hello everyone,

I am interested in hearing from those who experienced the 2008 financial crisis. What lessons did you learn, and what advice would you offer today, given that some financial experts are predicting the next crisis could be significantly worse? Additionally, what steps are you planning to take in preparation? For those working in positions that do not provide a livable wage, how would you navigate such a crisis?

Thank you for sharing your insights.

kaitlingraham·Aug 06

I was a kid in 2008, so I didn't really experience the crisis first hand. In preparation for our failing economy, I'm saving money. In freelance, we call it a "financial runway." It's an amount of money that you can live on for a certain number of months (3, 6, 12, how ever much you need to feel comfortable) until the economy corrects itself or you are able to regain financial stability. I'm looking forward to insights from others.

bridgetcogley·Aug 06

I bought a house in 2007 and watched its value crumble in half in 2008. It didn't fully recover when I sold it. Lesson 1: be cautious what you buy and when. Have both an optimistic model and a pessimistic one. Build financially for the pessimistic one.I had stock I never sold out of (misguided) loyalty. Some people did sell it and used it towards buying a house. I wish I'd sold it. Lesson 2: mind the game you're playing. I used my "people" rules for stocks. It doesn't work that way.Career-wise, I was okay and weathered because I was mid-level and hard enough to replace in a smaller, growing company. AI and tech in general are making this less true for more people. My husband didn't make much at the time. We bought our next house planning on 1 income, not because that was our goal, but that it afforded space for enduring chaos. Lesson 3: build your finances so you can endure shocks. Build a savings, diversify that savings (CDs, high yield accounts, etc), and don't hesitate to revisit frequently. General lessons: - pay your savings first. If you can't, reevaluate your spending. - live behind 2 raises if you can. Don't immediately raise your spending with new jobs.- have a side gig you can turn on and off. In 2008, I did resumes on the side. Now I do coaching. Velocity on each of these varies on what I need.- watch your debt load and pay it off in whatever manner works for you. - build your social safety net with other humans. Trade off dinners, trade help on home repairs, etc. Middle class and above generally neglects this because services like these can be paid for in flush times. - connect with other people in and out of your field before you need them. - try to monitor what you think will "kill" your industry: GenAI, lower wages, etc. Build skills you think will keep you afloat.

Iynna·Aug 07

- live behind 2 raises if you can. Don't immediately raise your spending with new jobs. --> PREACH! Don't fall for lifestyle inflation!

Iynna·Aug 07

what a wonderful thread to start @akiliaharankine! I was in high school during that time and by the time i went to uni and was on the job market, folks who were affected by the crisis (ie were graduating from uni then) were somewhat "prioritised" for the roles I was after (which makes sense, but i think it halted people ability to flourish financially)I wonder if we will see similar societal impact with the current situation - which is nowhere near 08 but would still have a huge impact on people's at the micro level!