How Bad can it Get, Now that the “Recession is Over!?”

Last week we heard the Great Recession which began in 2007 actually ended in June 2009.  Just a few days before that declaration, we also read that 1 in 7 Americans lives in poverty.  I am not an economist and don’t claim to be an expert in these matters, but this sure does not feel like a recovery to me.

I have a feeling it can still get worse.  These are already happening (in no particular order) and are likely to continue:

• Commercial real estate foreclosures
• Increased unemployment
• Continued residential foreclosures
• Increased homelessness
  
• Increasing food prices
• Increase in crime
• Bank closures
• Store closures
  
• States slashing funding for public programs
  

Which got my husband and I having a conversation about:  “How bad can it get for us personally if the economy gets even worse?

I had not actually thought about the nitty-gritty details.

First a definition of what is “worse?”  Worse to us would be if we both lost our jobs at the same time, and could not find new jobs right away.  We rent, so there is no house to lose.  We do still need to pay rent on time, or we would get evicted.  So, let’s say we’re both out of a job, that would mean cutting all expenses except food and utilities.  That means no more cell phones or basic cable; our budget would be bare bones.  If we get unemployment checks, we may be able to continue living in our current apartment, but what happens when unemployment runs out too?  We don’t have a lot of family in the area.  If there were no jobs out there, and unemployment benefits are no longer available, we would have to sell everything we own, and move to a one room apartment.  We’d be cramped, but have a roof over our head.  But once the money runs out, then what is left?  That is how families become homeless.

I don’t think I had ever considered the possibility that we could become homeless if things got bad.  But homelessness is happening to many families who have already had the bottom fall out from under them, so I have to think it can happen to anyone.

All the more reason to continue prepping for an uncertain future:  continue to save, store food, water and other necessities, take care of security and acquire a few skills like canning, fishing, etc.  I am grateful we are able to prepare now, to hopefully protect us from this possible worse case scenario in the future.