All Things Recession, Part 1 with Brock

Katelyn Magnuson: 00:00:16

Hey, welcome back to confident money podcast.

Katelyn Magnuson: 00:00:18

I'm your host, Caitlin Magnuson.

Katelyn Magnuson: 00:00:19

And today we have a really special guest Brock Brock is our tax

Katelyn Magnuson: 00:00:23

strategist here at the freelance CFO.

Katelyn Magnuson: 00:00:26

And we're gonna be talking about the recession.

Katelyn Magnuson: 00:00:28

I feel like this has been a hot button issue on social media.

Katelyn Magnuson: 00:00:31

And a lot of our clients have been asking questions about it.

Katelyn Magnuson: 00:00:33

And so we're gonna take this episode to explain what a recession is,

Katelyn Magnuson: 00:00:37

what that kind of can mean for people in their finances, and then

Katelyn Magnuson: 00:00:40

stay tuned for the next episode.

Katelyn Magnuson: 00:00:42

Cause we're gonna go into actionable steps for what you can be doing to

Katelyn Magnuson: 00:00:45

better prepare yourself Brock welcome.

Brock: 00:00:49

Thank you.

Brock: 00:00:49

Thank you for helping me.

Brock: 00:00:50

Very exciting.

Katelyn Magnuson: 00:00:52

So everyone's been talking about the recession.

Katelyn Magnuson: 00:00:54

I've been seeing it all over social media Brock.

Katelyn Magnuson: 00:00:57

What is a recession?

Katelyn Magnuson: 00:00:59

Okay.

Brock: 00:01:00

A recession is basically a decrease in consumer spending GDP.

Brock: 00:01:08

And it is a result, after continuous downturn in the economy.

Brock: 00:01:14

Um, until we actually hit the, point of a recession.

Brock: 00:01:18

So right now, I think this last week we actually hit a bear market,

Brock: 00:01:22

which is a 20% I believe, decrease.

Brock: 00:01:26

So the next step would be a recession.

Brock: 00:01:29

There's there's discussion about if we're actually gonna hit it.

Brock: 00:01:32

But I from what I've been reading and.

Brock: 00:01:35

experience that we've seen in the, you know, in the last couple decades,

Brock: 00:01:40

I'm pretty sure that it's it.

Brock: 00:01:42

It's a common

Katelyn Magnuson: 00:01:43

I, I would agree with you.

Katelyn Magnuson: 00:01:44

If not this, I would be shocked if it wasn't this quarter, but yes.

Katelyn Magnuson: 00:01:47

So with a recession, What does that generally look like?

Katelyn Magnuson: 00:01:51

You know, economically for a lot of people like I, you and I

Katelyn Magnuson: 00:01:53

both went through, what was it?

Katelyn Magnuson: 00:01:54

2008 recession.

Katelyn Magnuson: 00:01:56

Um, and I, I remember what that looked like for us and for our household and for

Katelyn Magnuson: 00:02:00

myself, cause I was 18 living on my own, but for people that maybe haven't lived

Katelyn Magnuson: 00:02:04

through recession or maybe were living at home and aren't totally up to speed,

Katelyn Magnuson: 00:02:08

how does that impact their day to day lives or, you know, their society around.

Brock: 00:02:12

Yeah.

Brock: 00:02:13

So I just remember a lot with 2008 and the additional struggles I think,

Brock: 00:02:18

you know, always gonna have struggles, in our financial lives and especi.

Brock: 00:02:22

As we're younger and starting to kind of get into our careers and, and out of

Brock: 00:02:26

schooling and everything, but it's even more difficult usually during a recession.

Brock: 00:02:32

So consumer spending usually goes down just because as a result of people just

Brock: 00:02:36

don't have as much disposable income.

Brock: 00:02:38

The stock market is not performing.

Brock: 00:02:40

So people aren't making as much money on their investments.

Brock: 00:02:44

Um, as we're seeing gas prices are kind of going up, so costs are going

Brock: 00:02:48

up, but that doesn't necessarily.

Brock: 00:02:50

Uh, mean anybody's making any more money.

Brock: 00:02:52

Inflation is out of control as we see interest rates higher, um,

Brock: 00:02:58

increase than we've seen since 1994.

Brock: 00:03:01

Um, you know, it's, it's, we really feel the effects everywhere in the

Brock: 00:03:05

economy and it's not just in the us, you know, um, abroad other countries

Brock: 00:03:11

that especially ones that do heavy trade with the us are definitely gonna

Brock: 00:03:14

feel repercussions from the recess.

Brock: 00:03:16

But really it, it comes down to just the difference of how we're

Brock: 00:03:20

living our life financially.

Brock: 00:03:23

So that, that means how are we preparing for it?

Brock: 00:03:27

Do we have enough built up in our savings?

Brock: 00:03:30

Are we able to kind of decrease our, um, our spending to kind of match really

Brock: 00:03:36

where our needs lie versus just our wants.

Brock: 00:03:39

Another thing that happens in a recession is a lot of people go back to school or

Brock: 00:03:44

we get a lot more non-traditional students in college and secondary education,

Brock: 00:03:49

which is actually a great opportunity.

Brock: 00:03:51

If, you are looking to go back to school for a couple years, Or, or,

Brock: 00:03:55

you know, get that extra degree, get a certificate, anything like that.

Brock: 00:03:58

Recession's actually kind of a, a good time to do that because, we are

Brock: 00:04:03

still able to go and get student loans and funding and everything like that.

Brock: 00:04:07

But , we don't really have a lot of other El other things that we can

Brock: 00:04:11

do because, growth, in the consumer sector and in, in the job market and

Brock: 00:04:15

everything very much slows hiring typically freezes with most companies.

Brock: 00:04:20

backfilled roles, are kind of stop.

Brock: 00:04:23

I would say there tends to be a lot more attrition too.

Brock: 00:04:26

Um, people get really scared.

Brock: 00:04:27

And there's a lot of panic that ensues and I think a lot of panic spending

Brock: 00:04:31

which as we've seen through COVID can lead to all kinds of other detri.

Brock: 00:04:37

You know, at the grocery store, as we're already seen with gas.

Brock: 00:04:41

It's multifaceted and it's, it's really the best way that I think of

Brock: 00:04:47

a recession is a time to really cut back in and look at your financial

Brock: 00:04:53

picture and make sure that you can survive through, um, a time where the

Brock: 00:04:58

economy really isn't in your favor.

Brock: 00:05:01

Um, of course people too, who have very heavy investments in the stock market and

Brock: 00:05:05

who aren't as liquid, run into a lot of issues, because they have intense losses.

Brock: 00:05:12

You know, if they depend on that as regular income, that's gonna

Brock: 00:05:14

slow and everything like that.

Brock: 00:05:16

So when we are bearing, you know, we go through a bear market and

Brock: 00:05:20

we're gearing up for a recession is the perfect time to really.

Brock: 00:05:24

At your finances, make sure you're prepared.

Brock: 00:05:27

Definitely look at your area in general too.

Brock: 00:05:29

I mean, the, recession is gonna affect all of us.

Brock: 00:05:33

Um, but definitely more areas get more affected.

Brock: 00:05:36

You're gonna see a lot more urban areas get hit pretty hard.

Brock: 00:05:39

but you know, it, it kind of just depends.

Brock: 00:05:41

Everyone's gonna feel in a little different of a way, because

Brock: 00:05:44

it deals with our economy.

Brock: 00:05:46

It, there's just so many different areas that we're gonna see some

Brock: 00:05:51

repercussions and some effects from, from how the economy has been doing.

Brock: 00:05:55

I feel like inflation has just been crazy and we are really feeling that.

Brock: 00:06:01

Think it has a lot to do with the housing market this time around,

Brock: 00:06:05

because I think last time, a lot of the housing market discussion.

Brock: 00:06:10

was around the recession.

Katelyn Magnuson: 00:06:12

Yeah, I think that that's gonna be really interesting

Katelyn Magnuson: 00:06:13

because as some of our listeners know, I bought my last house or my first

Katelyn Magnuson: 00:06:17

house, technically at the age of 20, which everyone's like, oh, that's great.

Katelyn Magnuson: 00:06:20

Which it's great.

Katelyn Magnuson: 00:06:21

It was a huge accomplishment.

Katelyn Magnuson: 00:06:22

Right.

Katelyn Magnuson: 00:06:22

But it was only because of that 2008 recession that I could afford that

Katelyn Magnuson: 00:06:26

house it's sold in 2006 for more than I could have afforded in 2010.

Katelyn Magnuson: 00:06:30

And we saw kind of a full scale.

Katelyn Magnuson: 00:06:34

Collapse and revamping or rebirthing even of the housing, you know, the,

Katelyn Magnuson: 00:06:38

the loan industry and everything that was going on that allowed or

Katelyn Magnuson: 00:06:42

set this up kind of for the perfect storm and perfect collapse in 2008.

Katelyn Magnuson: 00:06:46

And for everyone listening, I, we actually have a mini season coming out.

Katelyn Magnuson: 00:06:50

In just a couple of weeks with a loan officer where we talk about the like

Katelyn Magnuson: 00:06:54

actual differences and changes that have been made to loans since that time.

Katelyn Magnuson: 00:06:58

But everything that I've been reading and I'm interested in, you know, getting

Katelyn Magnuson: 00:07:00

your thoughts on this Brock, but normally a recession is marked by, you know,

Katelyn Magnuson: 00:07:04

that negative growth as you know, in the economy as a whole and a decrease in home

Katelyn Magnuson: 00:07:10

prices and increase in unemployment rates.

Katelyn Magnuson: 00:07:13

Right.

Katelyn Magnuson: 00:07:13

So all of.

Katelyn Magnuson: 00:07:14

Kind of a, Hmm.

Katelyn Magnuson: 00:07:15

You know, period of decline, depression in, you know, economic activity.

Katelyn Magnuson: 00:07:20

And we saw that being really pretty heavy in the unemployment

Katelyn Magnuson: 00:07:24

and the housing market arena.

Katelyn Magnuson: 00:07:26

And this time around.

Katelyn Magnuson: 00:07:29

From what I've seen.

Katelyn Magnuson: 00:07:29

I don't think it's going to cause the massive decrease in home prices like

Katelyn Magnuson: 00:07:34

we saw in the last recession, because there have been a lot of changes in

Katelyn Magnuson: 00:07:38

the loan practices, but there's also still such a massive demand for homes.

Katelyn Magnuson: 00:07:43

And my understanding is that home building has not ramped

Katelyn Magnuson: 00:07:46

back up to where it was pre 2008.

Katelyn Magnuson: 00:07:48

And so we're still behind in building homes that are needed for buyers.

Katelyn Magnuson: 00:07:52

So we might see, you know, maybe.

Katelyn Magnuson: 00:07:55

a stagnation in prices, but I'm not expecting to see some,

Katelyn Magnuson: 00:07:59

you know, massive decrease.

Katelyn Magnuson: 00:08:00

What do you

Brock: 00:08:01

Yeah, no, I think you're right, because I think a lot of the

Brock: 00:08:05

issues the last time were people were qualified for loans that they couldn't.

Brock: 00:08:09

We were oversaturating the market with, with qualifications that

Brock: 00:08:14

weren't true qualifications, really.

Brock: 00:08:17

So those have gotten a lot stricter and really what we're seeing now is

Brock: 00:08:22

just the pricing of the houses and that that's really putting people out

Brock: 00:08:27

of the, the housing market completely.

Brock: 00:08:29

So I don't think we're gonna feel it as much on the housing.

Brock: 00:08:32

When you mentioned unemployment and everything, I think that we've

Brock: 00:08:37

been dealing with unemployment so strongly since COVID that I think

Brock: 00:08:42

going into a recession, we're not gonna feel that abruptness like

Brock: 00:08:46

we did, in the last recession.

Brock: 00:08:48

And I think that maybe.

Brock: 00:08:52

Hopefully, you know, we, we have kind of looked at ways

Brock: 00:08:55

to recover from unemployment already in the last couple years.

Brock: 00:08:59

And some of those are already kind of in motion and, and the job market kind of

Brock: 00:09:02

is expanding, you know, not as quickly as we'd like, but we have a long way to go.

Brock: 00:09:07

Right.

Brock: 00:09:07

We went, you know, COVID really just did some detriment.

Brock: 00:09:11

To, to the job market and unemployment was, you know, all time high.

Brock: 00:09:15

So to come back from that takes takes quite a while.

Brock: 00:09:18

But I think given that the last recession was not too long ago and

Brock: 00:09:24

still kind of fresh in people's minds.

Brock: 00:09:25

And it scared a lot of people that I hope that people are a little bit more

Brock: 00:09:30

prepared this time, so that maybe the unemployment doesn't hit us as hard.

Brock: 00:09:35

Um, but that being said, you know, people are still recovering from COVID.

Brock: 00:09:40

You know, people still are getting their finances, trying

Brock: 00:09:42

to get them back in order.

Brock: 00:09:44

So recession does not come at a great time,

Katelyn Magnuson: 00:09:46

No, it doesn't.

Katelyn Magnuson: 00:09:48

I'm not gonna say there's ever a great time for it, but I feel

Katelyn Magnuson: 00:09:50

like we're just getting, you know, kicked while we're down.

Katelyn Magnuson: 00:09:53

Right.

Katelyn Magnuson: 00:09:53

We we've gotten through the majority of COVID.

Katelyn Magnuson: 00:09:56

We, you know, have a pretty good handle on it.

Katelyn Magnuson: 00:09:58

We had some support programs that were rolled out, you know, during the pandemic.

Katelyn Magnuson: 00:10:02

And now a lot of those support programs have ended or had funds exhausted,

Katelyn Magnuson: 00:10:06

and we're still not totally recovered.

Katelyn Magnuson: 00:10:09

Economically socially, you know, health wise to where we were pre pandemic.

Katelyn Magnuson: 00:10:14

And I'm gonna be interested to see, because it's caused such a shift in

Katelyn Magnuson: 00:10:19

industries and in work and in, you know, people's focus on health and

Katelyn Magnuson: 00:10:23

work life balance and working remotely.

Katelyn Magnuson: 00:10:25

I'm gonna be really intrigued to see what that looks like.

Katelyn Magnuson: 00:10:28

If we do go into a recession because we are.

Katelyn Magnuson: 00:10:32

I'm gonna say maybe primed a little bit better for it than we were beforehand.

Katelyn Magnuson: 00:10:37

We may not see as big of a hit as we saw in 2008 with unemployment.

Brock: 00:10:41

absolutely.

Brock: 00:10:41

I think even just technological advancements, advancements in business

Brock: 00:10:45

in general, really do allow us other routes of cost cutting and other

Brock: 00:10:50

ways that we can do our business.

Brock: 00:10:52

Whereas we didn't have some of those, um, opportunities in 2008 at that time.

Brock: 00:10:57

And then, you know, another thing you kind of mentioned the, the programs that have

Brock: 00:11:01

kind of ended since COVID, you know, and we, the worry I have with those is we've

Brock: 00:11:06

seen so much criticism, um, politically with how those programs were rolled out.

Brock: 00:11:13

If they were effective, if not now, a lot of people kind of put a lot of

Brock: 00:11:17

blame towards inflation because of them.

Brock: 00:11:19

Um, and I, you know, and of course I don't wanna get political, but

Brock: 00:11:22

what I'm saying is, I don't know that there's gonna be as much.

Brock: 00:11:27

Opportunity for getting saved.

Brock: 00:11:29

Maybe as there was in the last recession and stuff, we, we are

Brock: 00:11:32

not gonna have as many bailouts and everything because COVID cut us.

Brock: 00:11:35

So try anyway that, you know, I just don't really think policy makers and

Brock: 00:11:40

everything are gonna be out there really pushing, to kind of help out,

Brock: 00:11:46

each other because we we've already extended ourselves so much through COVID.

Brock: 00:11:51

Um, and we're, we're still where we're at.

Brock: 00:11:55

Mm-hmm oh,

Katelyn Magnuson: 00:11:56

right.

Katelyn Magnuson: 00:11:56

No, we're we're.

Katelyn Magnuson: 00:11:57

Yeah, exactly.

Katelyn Magnuson: 00:11:58

There's been a lot of financial outlay over the last, what?

Katelyn Magnuson: 00:12:00

Two, two and a half years.

Katelyn Magnuson: 00:12:02

and yeah, I, I have a lot, I think it, I think it helped a lot of people.

Katelyn Magnuson: 00:12:06

I think programs could always be done better, but I think that was

Katelyn Magnuson: 00:12:08

a lifeline that was so incredibly needed for so many people.

Katelyn Magnuson: 00:12:11

Especially for, there were companies that couldn't be open and I know I've seen

Katelyn Magnuson: 00:12:15

a massive reshuffling of our downtown here in Boise, even cuz I moved here.

Katelyn Magnuson: 00:12:20

less than six months before the pandemic started.

Katelyn Magnuson: 00:12:22

And I've gone back to Portland since, and Portland has completely changed

Katelyn Magnuson: 00:12:27

just the businesses that weren't able to stay afloat during, you know, all the

Katelyn Magnuson: 00:12:30

shutdowns and everything that went on.

Katelyn Magnuson: 00:12:31

And so I think we would've seen so much, so many more shutdowns

Katelyn Magnuson: 00:12:36

during that time or so many more closing or shuttering of businesses.

Katelyn Magnuson: 00:12:39

Had we not had a lot of those programs, but I think a lot of it, I know you did

Katelyn Magnuson: 00:12:43

a lot of this and we did a lot of this, um, was getting our clients qualified

Katelyn Magnuson: 00:12:48

for a lot of, you know, the assistance and funding and programs that came

Katelyn Magnuson: 00:12:51

through because they weren't always the easiest to navigate for people that,

Katelyn Magnuson: 00:12:54

you know, That wasn't their forte.

Katelyn Magnuson: 00:12:56

And I feel like they were constantly changing what was going like

Katelyn Magnuson: 00:13:00

we, we saw it with PPP, right?

Katelyn Magnuson: 00:13:02

Um, they changed how you could qualify and if you're qualifying enough, you,

Katelyn Magnuson: 00:13:05

you could pick 2019 versus whatever.

Katelyn Magnuson: 00:13:07

And you could look at what was it your, I think, gross profit versus net profit.

Katelyn Magnuson: 00:13:13

And if you'd already done it, you couldn't like get it revamped.

Katelyn Magnuson: 00:13:15

And so there's always things that could have been done better.

Katelyn Magnuson: 00:13:18

Uh, but I agree.

Katelyn Magnuson: 00:13:18

I think we have exhausted sort of.

Katelyn Magnuson: 00:13:21

Political or economic Goodwill for a lot of these, you know,

Katelyn Magnuson: 00:13:25

funding programs or lifelines and makes me a little bit nervous.

Katelyn Magnuson: 00:13:30

It makes me, it would make me more nervous if we were looking at something

Katelyn Magnuson: 00:13:35

like the size of 2008, but I think that.

Katelyn Magnuson: 00:13:38

Having COVID has prepared a lot of us.

Katelyn Magnuson: 00:13:41

And I think people hear recession, especially that are in their thirties

Katelyn Magnuson: 00:13:45

or forties that have lived through and were adults during the last recession.

Katelyn Magnuson: 00:13:48

And they're, they're really nervous or stressed out about it, or, you

Katelyn Magnuson: 00:13:51

know, it's causing anxiety and

Katelyn Magnuson: 00:13:53

we've kind of, yeah, we've kind of lived through that a little bit already.

Katelyn Magnuson: 00:13:57

Right.

Katelyn Magnuson: 00:13:57

With COVID even just recently.

Katelyn Magnuson: 00:13:59

And so I think that made a lot of us reassess our finances.

Katelyn Magnuson: 00:14:02

And so preparing for this may not be that different for a lot of people, as it would

Katelyn Magnuson: 00:14:06

be, you know, like preparing for COVID.

Katelyn Magnuson: 00:14:08

We did see very weird buying habits and spikes and things during COVID that

Katelyn Magnuson: 00:14:13

I'm hoping we see less of during this.

Brock: 00:14:16

I was going to mirror that statement because.

Brock: 00:14:19

I also wish that, um, do I feel like that?

Brock: 00:14:24

No.

Brock: 00:14:24

I think that we know how consumers react to things, and a fear

Brock: 00:14:30

reaction grows strong with us.

Brock: 00:14:32

So I think that we will see a lot of the, things that we saw in the last time.

Brock: 00:14:38

I think there are gonna be some businesses again that are going to very much love.

Brock: 00:14:45

This

Brock: 00:14:45

kind of panic consuming, across the board.

Brock: 00:14:48

But I really do think that people, because of the news and everything the mass

Brock: 00:14:54

awareness is so much stronger right now, um, than it was probably around 2008.

Brock: 00:14:59

And like you said, the fear of what's already happened in 2008, I think

Brock: 00:15:04

keeps us a lot of us on our feet,

Brock: 00:15:06

um, that, you know, at least for me, um, and you, we watch the

Brock: 00:15:11

market, we see that it's coming.

Brock: 00:15:13

And what I do is I'm like, okay, I'm I'm I wanna be ahead of the game.

Brock: 00:15:17

I wanna be prepared.

Brock: 00:15:18

I wanna make sure I have all my ducks in a row.

Brock: 00:15:21

And I think that the businesses that did make it through COVID, um, you know,

Brock: 00:15:26

whether it be, and thank God for PPP for, for so many different industries.

Brock: 00:15:31

I mean, we wouldn't have a hospitality industry right now if it wasn't for PPP,

Brock: 00:15:35

but will they, you know, they're just taking this time right now to kind of

Brock: 00:15:40

recover from what they just got through.

Brock: 00:15:42

So, you know, it there's that concern that it's.

Brock: 00:15:46

You know, we, are we gonna kick 'em when they're already down again

Brock: 00:15:49

and how negatively is that gonna affect our, not just our job market,

Brock: 00:15:53

but just our consumer market.

Brock: 00:15:55

Um, you know, business, poor businesses have been through a lot.

Brock: 00:16:00

Well, I mean, individually we've all been through a lot, but, You know,

Brock: 00:16:03

small businesses are, you know, constantly, constantly struggling,

Brock: 00:16:08

um, to meet, to, to meet demands and then to, to structure, you know, the

Brock: 00:16:14

kind of their plan through to navigate through these recessions and everything.

Brock: 00:16:18

And they don't have as many options.

Katelyn Magnuson: 00:16:21

Absolutely.

Katelyn Magnuson: 00:16:22

No, and I.

Katelyn Magnuson: 00:16:24

I think that, that, that is the part of this recession

Katelyn Magnuson: 00:16:27

that potentially concerns me.

Katelyn Magnuson: 00:16:28

Right.

Katelyn Magnuson: 00:16:28

Because we have just started to kind of recover recoup funds.

Katelyn Magnuson: 00:16:33

People are taking vacations, you know, we're starting to see some,

Katelyn Magnuson: 00:16:36

or we were starting to see some increase in spending a little bit

Katelyn Magnuson: 00:16:38

last summer, you know, a little bit of a dip over the winter and then kind

Katelyn Magnuson: 00:16:41

of again, with school, getting out.

Katelyn Magnuson: 00:16:44

You know, in the last couple of weeks, we always see sort of an uptick in

Katelyn Magnuson: 00:16:47

that and spending, and we do, we see a decrease in all that when we have

Katelyn Magnuson: 00:16:51

a recession, you know, discretionary spending decreases because people.

Katelyn Magnuson: 00:16:56

Contract, because it's kind of, you know, chicken or the egg, right.

Katelyn Magnuson: 00:16:59

Um, you end, we come into a recession.

Katelyn Magnuson: 00:17:02

People spend less because we're in a recession as well, which then

Katelyn Magnuson: 00:17:05

kind of, you know, furthers some of the, like the recession qualities,

Katelyn Magnuson: 00:17:08

because if you're spending less, then there's less demand for supplies, for

Katelyn Magnuson: 00:17:12

goods, for jobs, for everything else.

Brock: 00:17:14

unemployment, unemployment just flies up and.

Brock: 00:17:18

you know, we're, we're struggling enough to get unemployment down.

Brock: 00:17:21

And that, that part really, really does frighten me.

Brock: 00:17:25

Um, travel is definitely already seen a big hit, our gas prices and everything.

Brock: 00:17:32

And I think many are quick to, uh, we kind of touched on this earlier,

Brock: 00:17:37

but many are quick to look at the housing market and the gas prices.

Brock: 00:17:41

And say that's where our recession is lying and they're just small

Brock: 00:17:45

factors into a really big problem.

Brock: 00:17:47

You know what I mean?

Brock: 00:17:47

Like we, we see what's happened with inflation and everything and you

Brock: 00:17:52

know, like you said, spending goes down, jobs, go down, unemployment

Brock: 00:17:56

goes up, public assistance is down.

Brock: 00:17:59

It's just such this effect.

Brock: 00:18:01

And I, I worry, you know, It really does further that disparity between the

Brock: 00:18:07

people who are prepared and who aren't, because it's such so much more drastic

Brock: 00:18:11

and housing prices right now are so out, you know, costly that if somebody

Brock: 00:18:16

says, you know, I'm paying too much in rent, I'm almost up for my new lease.

Brock: 00:18:20

Gotta get into a, you know, a more affordable place.

Brock: 00:18:23

Well, whether you want to or not is not necessarily, if you can't, you

Brock: 00:18:27

know, if you're going to, because the, you know, the demand and

Brock: 00:18:31

supply and the housing market is so.

Brock: 00:18:34

You know, just in despair because I mean, I am right now, you know, I have

Brock: 00:18:40

been looking, um, for an apartment in, in New York and just the, you know, how

Brock: 00:18:48

quick things go, the prices are just, you know, so high, higher than we've

Brock: 00:18:53

seen, obviously in the last couple years, because of COVID that people need to

Brock: 00:18:59

be prepared that not only are we gonna about to see some recessionary measures.

Brock: 00:19:03

but we already have things working against us, uh, before that.

Brock: 00:19:08

So I feel like, because we've seen that last recession, we have to prepare

Brock: 00:19:14

ourselves even more for this one.

Brock: 00:19:16

Um, because if you don't, you're gonna be, you know, kind of left out

Brock: 00:19:21

there in the dark and it can be very scary because like we said, trying

Brock: 00:19:25

to navigate this one without kind of the government on your back, like

Brock: 00:19:29

back there to kind of support you.

Brock: 00:19:32

Um, if, if, if, if we do fall, which we all needed the last time, you know, we,

Brock: 00:19:38

we see how, how it works with consumers.

Brock: 00:19:40

Like, um, I think what did I read the other day that statistic that

Brock: 00:19:46

36% of people that make over a hundred thousand dollars right now

Brock: 00:19:50

are living paycheck to paycheck.

Brock: 00:19:53

If you would've told me that in 2008, I would've, you know, my,

Brock: 00:19:56

my head would've blown up, but it's, it's the new normal and.

Brock: 00:20:01

That is, you know, just us going into the bear market.

Brock: 00:20:04

So we've, you know, and I think that it's gonna scare people and then

Brock: 00:20:10

God, everything's just gonna happen quick, but hopefully we are more

Brock: 00:20:14

prepared and more educated about how to navigate with this time,

Brock: 00:20:17

which I

Brock: 00:20:17

think next episode, we will do great with that.

Katelyn Magnuson: 00:20:20

that's exactly what I was just gonna say.

Katelyn Magnuson: 00:20:21

I was like, and, and now that we've kind of educated everyone about.

Katelyn Magnuson: 00:20:24

You know what a recession is, what to, you know, what to potentially expect.

Katelyn Magnuson: 00:20:27

And again, we don't have a crystal ball, right?

Katelyn Magnuson: 00:20:29

So we are just making educated guesses on what we have seen, you

Katelyn Magnuson: 00:20:34

know, over the last 12, what 14 years, and what we expect to see.

Katelyn Magnuson: 00:20:39

I know, I know I just did the mathematics, like, oh my God.

Katelyn Magnuson: 00:20:42

Um, and what we can expect to see based on what we know that has changed in,

Katelyn Magnuson: 00:20:47

you know, our present day and with that.

Katelyn Magnuson: 00:20:49

So this is not meant to be an episode of.

Katelyn Magnuson: 00:20:52

Oh, despair.

Katelyn Magnuson: 00:20:53

There is no hope.

Katelyn Magnuson: 00:20:54

Um, what we're gonna cover on our next episode are actions that you

Katelyn Magnuson: 00:20:57

can be taking now to help set you up.

Katelyn Magnuson: 00:21:00

And I think also ease some potential anxiety right around

Katelyn Magnuson: 00:21:04

your finances around a recession.

Katelyn Magnuson: 00:21:06

So stay tuned for that next week.

Katelyn Magnuson: 00:21:09

And we're gonna go into some real, tangible action steps Brock.

Katelyn Magnuson: 00:21:12

Thank you for being here.

Katelyn Magnuson: 00:21:13

We will have you on next week to chat through what we're gonna

Katelyn Magnuson: 00:21:16

be doing to set everyone up for.

Katelyn Magnuson: 00:21:18

anxiety.

Katelyn Magnuson: 00:21:19

Decreasing measures is what we'll call it.

Brock: 00:21:21

Yeah, absolutely.

Brock: 00:21:22

Well, thank you for having me, Caitlin.

Brock: 00:21:24

It's been awesome.

Brock: 00:21:25

And I look forward to chatting soon.