Stupid/Brilliant Things
Trying to save or make money
1. Some time ago (maybe after the Great Financial Crisis) I decided to make some changes in my purchasing habits
2. If you don’t remember living through it, there was a liquidity crisis and a credit crunch
3. In order to avoid liquidating more assets to provide a cash cushion for getting through the sh*t storm, I decided to sell anything that wasn’t essential to my day to day living situation
Some things are more difficult to sell under those type of circumstances. Like yachts.
4. Listening to some people opining about the economy and the financial markets, I decided that I needed to do more research on hyperinflation.
We didn’t see it then, but I didn’t think it could be ruled out in the future.
5. One of the strategies for dealing with hyperinflation was, of course, stocking up on the things you would need for the next few years….
The “buy everything you’ll need to get through the next few years” theme - utilitarian and hard assets. It was a good time to buy just about anything - people were selling gently used things just to survive
6. So, with our dollars taking haircuts every time we looked at them….
I started stockpiling stuff, just so I wouldn’t have to go shopping for a few years, and would be able to stay out of stores/not make any extraneous purchases, since I already had necessities.
7. My experiment allowed us to save a lot over the next few years
We wore out furniture, cars, tools, pots & pans, towels, linens, carpets, clothes, shoes, cooked from our pantry, etc. We literally used up almost everything. Without going into stores every week for a couple of years, we stashed savings In case our income faltered.
8. I was adamant/stubborn that I would not buy anything new until I was convinced the market was going to turn around
So we started reinvesting in 2009 catching the upswing. Several years later, this enabled me to purchase real estate at the bottom of the market. Kept some construction crews working doing additions & remodels.
9. I’m feeling that state of mind again with inflation burning
I’m on consumerism strike until I wear out & use up everything currently in my house to see how long I can go without having to purchase a replacement for something. No sooner do I make this decision, than my vacuum dies. And now several other mechanical things are breaking down. I’m now thinking I need to examine supply chains for critical systems at home.
10. My vehicle is 10 years old…looking at sticker prices of new vehicles is anxiety provoking
So, now I’m pondering inflationary pressures, how many people are doing what I’m doing and will be forced into the market to purchase certain items and which items, etc. So many variables to consider, but ultimately I think the best thing is to consider your own personal situation to consider an optimum time frame to grab something out of the existing supply chain.
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