Stay frosty, save and avoid loans: Surviving Nuke Town

Survivng an economic meltdown is pretty much the same thing as surviving a multi-year bear market. The executive summary is that I accumulate but there's a bit more to it.

The crypto industry can be brutal and if you don't stay frosty, it will take you by surprise. Trust me, you don't want to be taken by surprise, even when it's good news.

I mean, yeah, it's awesome to find out that your bags were pumping when you were sleeping but it means nothing if you can't sell to take profit. It's pretty much the same vibe with preparing for an economic meltdown but in reverse.

I've survived a multi-year bear market that started in the middle of 2018 and lasted till 2021. In that time, I learnt something about myself, the market and the art of survival.

Reeling it in

As I said earlier, surviving an economic meltdown is the same thing as surviving a multi-year bear market. Technically speaking, a bear market is pretty much the same thing as economic meltdown.

In that period, you have to learn how to contain your taste for life. You teach yourself the ability to survive on a budget.

Also, something else I do in times of plenty is to be conscious of my reality. What I mean is that I operate on the basis that whatever I do when I'm feeling rich shouldn't be assumed to be my normal life.

So to ensure you don't end up in a bad place, you should avoid developing expensive habits. Don't make lifestyle changes that you can't deal with if you start being poor tomorrow.

For example, I have subscriptions on Netflix and YT music that aren't too expensive but I resisted the urge to add even more streaming services. Also, while my subscriptions are billed automatically, it's deducted from a virtual card that I have to manually fund.

This means that whenever my means can't afford it, I'll just automatically reel it in. This way, I know I won't spend more than I make.

Avoid loans

I generally avoid getting into debt. Hell, if it's a wicked meltdown, you might not have a choice but you can still cut it down.

So if you find out the market has been nuked by a China size bomb or something, just try to steel yourself. The crypto market has taught me that the ashes will always rise again, just try not to be too far down in the negatives when it does.

Hold profit

Many people forget to take profit and that's something I always remind people close to me.

Other than the fact that the market can be unpredictable and erratic, life is short. What's the point in having expensive assets if you're not going to take profit?

Honestly, I've always felt that taking profit is a skill on its own. If you create a way to take profit, hold it and maybe even save it for tiny APR, you could be saving yourself from a world of pain.

In summary

So you should always try to improve the quality of your life but at the same time, remember that things could also easily go south.

This means you have to always balance your investments, risks and savings to ensure you're protecting your interest.

For example, you don't have to rationalise the market in the same way with someone that lives in a place that they could get a job, where as you live off crypto. In the same way you should not consider a $1k investment from your $5k portfolio to be the same as someone else that invests $1k from a $100k portfolio.

The point is that you should focus on yourself and your own needs. Take profit when you have to, put some in savings and avoid expensive habits.