20-Something Gets 5 Tips From 'Old People' About How They Got By During The Last Recession
Who better to learn from than those who have lived already through it?
Kmpzzz | Shutterstock Economists and other experts are sounding alarm bells that the world is heading into a global recession. Finances are already stressful enough, but with President Donald Trump's tariffs, things are certainly not looking up. In fact, the brokerage firm J.P. Morgan put the odds of a global recession at 60%, up by 20% since the end of March.
While many adults vividly remember The Great Recession, which lasted from December 2007 to June 2009, Gen Zers were children at the time. With a new recession looming on the horizon, many are looking to their elders for advice, including one 20-something-year-old who asked for guidance on Reddit. "How did you save money during the 2008 recession?" they asked. "I was only a kid when it happened. But now it's looking like it's about to happen all over again, and this time around I'm the one paying the bills."
Here are 5 tips from 'old people' about how they got by during the last recession:
1. Eliminate unnecessary purchases.
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Perhaps most obviously, many Redditors advised eliminating unnecessary purchases. "Learn to separate wants from needs," one user wrote.
According to NerdWallet, a personal finance company, "financial needs are expenditures that are essential for you to be able to live and work." This includes recurring expenses, like housing, insurance, utilities, and transportation. Wants, on the other hand, are "expenses that help you live more comfortably." They are things you buy for fun, but can live without — no matter how much you would prefer to live with them.
Unfortunately, a recession likely means giving up many of your wants. Perhaps it's time to cancel a streaming service or two, ditch your morning latte, or put an end to your gym membership.
2. Shop at discounted stores.
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Discounted stores are a smart way to stay within budget while finding affordable essentials. Many Reddit users shared that during the last recession, they frequented thrift stores like Goodwill, while others opted to buy in bulk from stores like Costco.
As of summer 2024, data showed that many Americans were already moving toward discount stores due to financial concerns. In a survey conducted by the accounting firm KPMG, 65% of consumers, including nearly 60% of those making $200,000 or more, said that they expect to do more discount shopping this year.
3. Look for ways to have fun for free.
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Leisure activities can be expensive, especially during a recession, and you might start to feel like enjoying yourself is out of reach. However, there are plenty of ways to have fun for free.
"Learn to enjoy cheap pleasures like library books, city parks, and Little Caesar’s or other nostalgic treats," one Redditor advised. There are even hobbies you can take up that are not just cheap, but cost-effective, like gardening, sewing, and hiking.
4. Have more than one job.
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Unfortunately, a repeated piece of advice from many older people on the Reddit thread was to take on a second job. Of course, this is not ideal, but it may provide extra security and peace of mind, especially if you are concerned about potential layoffs. It's helpful to have another income stream to fall back on should the worst happen.
Still, times have changed since 2008, and the gig economy has grown exponentially. It's definitely easier to get a flexible second job than it was back in the day, so at least there's that.
5. Recession-proof your retirement fund.
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Many people watched their retirement funds tank in 2008, and are now urging others to stay vigilant and recession-proof their own. Bankrate shared several ways to do so.
First, diversify your investments. "By spreading your investments across various asset classes (such as stocks, bonds, ETFs, real estate and more), you can mitigate the impact of a single asset’s decline," investment writer Rachel Christian explained. Next, work on creating an emergency fund — they also suggested cultivating a second income stream to help save money. You should also delay taking social security when possible.
Mina Rose Morales is a writer and photojournalist with a degree in journalism. She covers a wide range of topics, including psychology, self-help, relationships, and the human experience.
