How to survive during the Great Depression?

How to survive during the Great Depression?

How to survive the Great Depression? One of the most common phenomena during the Great Depression was the sharp rise in unemployment. So ordinary people must try their best to keep their jobs. If there is a job, there will be a temporary stable income, and the income will definitely decrease, but it is better to reduce it than to interrupt it. Let's see how to survive the Great Depression.

How to survive the Great Depression 1 1? Avoid bankruptcy

A few years ago, most of my friends around me pursued profit maximization, and they did not hesitate to mortgage their assets for more funds and bet on the future.

But then you must try to reduce your debt, because once you encounter the black swan incident, everything you have will disappear in this Great Depression.

Avoid short-term debt

Any debt or mortgage must be considered clearly! If you still have to take on the mortgage at this time, it is suggested to lengthen the time, reduce the loan pressure in the middle and spread the risks as much as possible, otherwise it may crush you one day.

cutting down expenses

All consumer loans are prohibited. For example, I now cancel flower shops and credit cards, reduce long-term cash deposits, and ensure ample cash flow savings.

The epidemic in 2020 taught us a lesson. Cash flow is really important. Both individuals and enterprises often "die" in cash flow and finally disappear in the darkness before dawn.

So how much should I prepare for the winter?

There is no income for more than one year, and no loan is needed to maintain the family's cash flow.

4. Reduce investment income

Many people say that this is a once-in-a-lifetime opportunity to bargain-hunting.

I'm sorry, how many powerful people died at the bottom of the bargain. Most of what you think of as bargain hunting is copied on the hillside.

For example, unlucky me, I have been losing money since I bought it.

So stop this wishful thinking and set yourself a safe investment ratio. Don't be affected by short-term fluctuations, and use your abundant and stable cash flow to counter the unpredictability of the outside world. Fixed investment will be a better investment habit.

When investing at the same time, pay attention to diversifying risks. Gold, funds, A shares, etc. We should also invest in a certain proportion, and leave some cash to bargain-hunt undervalued assets during the recovery period of the economic crisis.

5. Increase sideline income

Recently, the news of corporate layoffs is endless. Whether you are a state-owned enterprise or an internet enterprise, the most important thing now is to cultivate your second professional ability.

When you lose your job one day, especially when you still have debts at home, it's too late to think about it. Crisis will not wait for you. In any case, give yourself a little pressure, even if the media are everywhere now, it is still a good way out, as long as you can persist.

6. Keep your hobby.

Unemployment is painful, especially when you are struggling to find a job, often despair will devour you first.

At this time, you must find a positive hobby that you like, such as exercising, planting flowers or practicing calligraphy, which can make your life meaningful and give yourself a little spiritual sustenance at this hopeless time.

If you happen to have the desire to write a novel or learn a musical instrument, this time will be a very good time.

For example, I recently began to explore the mysterious tarot cards and want to find out.

How to survive during the Great Depression 2. Try to avoid unemployment.

One of the most common phenomena of the Great Depression in the United States is the sharp rise of unemployment rate. According to the data of that year, in the third year of the Great Depression in the United States, that is, 1932, 34 million adults had no income, and 1 1 10,000 farmers struggled in the depression. Regarding the sufferings and struggles of landless and unemployed farmers in the United States during the Great Depression, we can look at john steinbeck's The Grapes of Wrath, which won the Pulitzer Prize for Literature. The author of this book won the Nobel Prize in Literature for this book, which is the book with the deepest affection for the author in recent years.

Enlightenment to us: In The Grapes of Wrath, unemployed American farmers go to the plantation to pick oranges all day. The money they earn can buy a pound of beef ribs, coffee, a big bag of flour and five gallons of gasoline for their cars, which we can't do at ordinary times.

So ordinary people must try their best to keep their jobs. At that time, there was widespread unemployment in the United States, from farmers to corporate executives to factory workers. Reminiscent of our recent days, the booming Internet companies have laid off a large number of employees in succession, and they also euphemistically called "graduation" and "sending talents to the society", which makes people shudder.

If there is a job, there will be a temporary stable income, and the income will definitely decrease, but it is better to reduce it than to interrupt it. As long as there is no interruption, there is still hope for everything.

Social decrease

During the Great Depression in the United States, because a large number of people were unemployed, the income of the unemployed also fell sharply, the consumption desire of the whole society fell sharply, and the social needs of all people fell sharply. Americans' main forms of entertainment tend to be family entertainment, such as listening to the radio, reading books and playing chess. On the contrary, the film industry, radio drama and other spiritual entertainment industries are relatively prosperous, because these entertainment methods are low socialization or de-socialization, and the cost is low. Everyone is reluctant to go to bars, karaoke bars and restaurants to spend money, but as long as people are alive, the demand for entertainment still exists, so reducing social entertainment life has become the main way during the Great Depression.

Enlightenment to us: KTV, a physical consumer industry such as restaurants and bars, is the first industry to be hit when the depression comes, because people's desire for entertainment and social consumption will drop sharply, and industry practitioners should be prepared to cut costs or quit safely. People who have not yet entered this kind of industry must not choose this kind of industry as a means of "starting a business" or saving the crisis. The rise and prosperity of short video and live broadcast industry, similar to the film and broadcasting industry in the United States at that time, may assume people's main social and entertainment functions during the economic recession.

Reduce investment, increase revenue and reduce expenditure, and don't get into debt.

Investment and consumption during the Great Depression were meaningless and extremely dangerous. During the Great Depression, real estate investment in the United States fell by more than 70%, the average wholesale price of goods in the United States fell by more than 30%, all assets were rapidly depreciating, and all consumption intentions were greatly reduced. The most valuable asset is money itself. Debt has become the most dangerous behavior, income is decreasing, mortgage assets are depreciating, and debt itself will not decrease, but will actually increase with the depreciation of assets.

Enlightenment to us: don't let yourself get into debt, don't spend too much, don't invest impulsively, and try to save money. The money in your hand is the most precious asset.

How to survive during the Great Depression 3 How do ordinary people cope with the Great Depression?

1. It is forbidden to invest in highly leveraged assets. Now most people will borrow money to buy a house, and this way of buying a house with down payment and mortgage is actually a typical leveraged house. During the Great Depression, residents' income and just-needed property market will drop sharply. There is no doubt that house prices will fall during this period. At this time, adding leverage to buy a house is tantamount to sending money to developers.

2. If you want to invest, you'd better choose long-term low-risk assets. During the economic crisis, if you want to invest, you'd better choose some low-risk investments, such as bank deposits, fixed investment and index funds.

It is best not to invest in long-term risky assets. For example, stock and equity investments require relatively large investment funds. Usually, the equity investment starts at 6.5438+0 million, or even 3 million. It is very risky to make such an investment. Once the capital chain breaks due to the economic crisis, it will go bankrupt, so it is best not to make high-risk investments during the economic depression.

4. During the economic depression, you can allocate some safe-haven assets, such as gold, which is the best choice, because gold is a scarce metal with certain collection value, and as a hard currency, gold can circulate around the world, so it is very necessary to hoard some gold during the economic crisis.

5. Pay attention to accumulating reserve funds at ordinary times. During the economic crisis, people are more likely to lose their jobs. Once they lose their jobs, they will face a situation of no economic income. Therefore, in a crisis, everyone should prepare for unemployment in advance and accumulate certain funds for emergencies. The best thing is that everyone should get into the habit of accumulating reserve funds at ordinary times, so that when a real crisis comes, the reserve funds can also help everyone maintain their basic daily expenses for a period of time.