This Week's Question: During an Economic Downturn, What's the Best Financial Advice You Could Give Someone?

Inflation, layoffs, the crypto market crashing - lots of not so rosy events are happening.

If you still remember going through a recession like the GFC or the dot-com bubble (maybe even the oil crisis in 1973?), what were some of the best financial tips/advice you’ve either given or received then?


To be honest, no one around me was financially savvy.

However, since I started reading and learning, the best advice I read was ¨the time to buy is when there’s blood in the street.¨ Google says it was Nathan Rothschild.


Hiya @Ananais

I’m planning of developing and seeking advice from experts on strategies that can be profitable in these recession days in cryptocurrency markets.
I’m also looking to purchase any application of charting or technical analysis if it works on cryptocurrencies and if I didn’t purchase it yet lol

Tnx and best of luck

I’m feeding stray urban and wild bird’s mouths +


Same. Also I didn’t have money then. Not that I have any now lol but hey at least I can set some money aside for buying now that there’s blood in the streets. But who knows if there’ll be more blood though! :woozy_face:


One of the famous quotes of Warren Buffett "fearful when others are greedy and greedy when others are fearful.”
When a recession happens, others are fearful and someone is greedy???

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I think I heard something similar to that statement from Warren Buffet. It was in an interview where he stated that he buys when people are afraid and sell when people are greedy. Not sure how he phrased the statement, but it is kinda similar.

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Right, nor did I. But without any financial discipline, you’ll never be able to manage ANY amount of money. Be it $5k or $100K. Without financial discipline, money is like holding onto smoke. It all just disappears.

No one taught me financial discipline. I had to seek it. I read a book about financial discipline, then even a book about basic accounting. Then, I watched several Dave Ramsey videos. That dude is a genius. He changed my views on a lot of things.

One of the best pieces of Dave Ramsey’s advice was to get rid of credit cards.

Keep investing for the long-term.

What is investing long-term? At least 50 years but preferably for your children’s retirement.


This for sure, especially if you’re new to credit cards or just got a job. BUT I do think that if you’ve already developed the discipline to handle finances, it would be a missed opportunity to not take advantage of credit card points/rewards etc.

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He talks about that too. You’re psychologically more likely to spend MORE money when using a card vs cash.

When cash leaves your hand, it creates a negative response in your brain (triggers pain sensors). When you use your card, your brain doesn’t get that negative response, and you think you’re getting the goods for free, so you spend more money than you would if it were cash.

The rewards are a way of getting you to keep using the cards. Just think about it. Do you think you’re getting a leg up on the credit card company? Would they just give away so much stuff if they weren’t coming out on top?

¨I want to quit my credit cards, but the rewards are just so good!¨ That sounds like someone who can’t quit a toxic relationship.

Perhaps the ONLY way that works is if you ONLY use it for automatic payments. Cell phone, water bill, utilities, insurance etc.

If you’re carrying your card when you go out, you’re gonna spend more money than you should.

And saving it for emergencies may not work either.

For me, I only plan to have a credit card in the future for international car rentals. Renting a car overseas with a debit card will be problematic, if not impossible.

For some that may be the case. But I literally use my credit card to buy stuff I would buy using cash or otherwise. :slight_smile: The only real downside I see is the processing fee that credit cards charge merchants. BUT to your point, I can see how that can be true for others!

This might be overthinking it. I think if you pay your balances in full and know that you’re not buying stuff you don’t need, you’re fine.

I think whatever works for one person is great! YMMV as they say. :slight_smile:

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That’s what I said.

If you’re one of the few who can carry a credit card in your wallet and the psychological factors don’t affect you, then you’re quite fortunate.

I don’t want that kind of temptation. Perhaps you’re the mouse who can get the cheese. I’m not so quick.

Ramsey has explained that credit cards are one of the most aggressively marketed products in the world. They have amazing research teams. He said we’re not smarter than the credit card companies.

What kind of investments qualify for the 50-year thinking? Cryptos?

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Blue-chip US and international firms which make a profit and whose shares carry a dividend. Same old, same old.

This is actually more of a reminder to myself than an advice for others :sweat_smile: But I’ve recently started tracking my expenses and money flow on spreadsheet and it’s been super helpful. :open_mouth:


The kind of condition cryptos are in, I think they would better suit for a 500-year investment :joy:


Only bet 1 or 2 % of your holdings on a single trade

I do think credit cards have one big advantage, along with the trouble they can cause. You don’t have to expose your bank account info when making purchases, and you have the chance to deny fraudulent charges. I certainly agree with Dave Ramsey that it’s psychologically easier to spend more with credit cards. But if we’re on a road trip and stop for gas in Podunk North Dakota, I’m sure as **** not paying directly from our checking account…

This is the only area where I disagree with Dave Ramsey just a little. If you have the discipline to stick to a good budget, then a credit card is just another way to handle your money.