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Times Are Rough, So Think Smart and Profit (kevinelliott.net)
33 points by markbao 3279 days ago | hide | past | web | 17 comments | favorite



So, when times are good, "think dumb and burn money"?

Seriously, these are good points but why only follow them when the economy is down? In my opinion, really smart businesses do these things all the time. My business partner is a total non-geek. But he does these things and I think it's part of the reason we've done well over the last 5 years (he runs the money, I run the dev).

Also, the FDIC thing is tough. If you have a business where purchases/payments are coming in from a merchant account daily, I'm not sure how you can keep that account balance under $100K at all times.


You're insured for 100k for each bank's accounts. If you can spread it around, do so.


You are incorrect. My article, although a bit unclear, was not wrong.

Taken right from the FDIC website at http://www.fdic.gov/deposit/deposits/insuringdeposits/

"The basic insurance amount is $100,000 per depositor per insured bank. Certain retirement accounts, such as Individual Retirement Accounts, are insured up to $250,000 per depositor per insured bank."

They further describe:

"You may qualify for more than $100,000 in coverage at one insured bank if you own deposit accounts in different ownership categories."

They then describe what the different ownership categories are:

"The most common ownership categories are: Single Accounts, Certain Retirement Accounts, Joint Accounts, Revocable Trust Accounts" (obviously this is not a complete list)

And lastly, single accounts were described as:

"These are deposit accounts owned by one person and titled in that person’s name only. All of your single accounts at the same insured bank are added together and the total is insured up to $100,000. For example, if you have a checking account and a CD at the same insured bank, and both accounts are in your name only, the two accounts are added together and the total is insured up to $100,000.

Note: Retirement accounts and qualifying trust accounts are not included in this ownership category."

So what this all says is:

  You may have a total of $100,000 in your combined Single Accounts (checking, savings, etc)
  You may have a total of $250,000 in a qualifying IRA.
  You may have a total of $100,000 in a trust. (Although trusts get more complicated, this is not entirely true).
  You may have a total of $100,000 in a joint account, your partner another $100,000.
Since this is not a complete list, I can't blankly say that you can have up to $550,000 at one bank.

By the way, thanks for all the comments here on my article and at the article itself. Was a real treat to see the activity yesterday!


I meant to post this under seiji's reply.


It's per depositor per bank. If you have 10 accounts each with $100,000 at one bank, you are only covered for $100,000.

(That may be what you said with "each bank's accounts," but the article is definitely mistaken).


I wrote a response above that clarifies this misconception. I've talked with a lot of people in person over the last 2 months about the FDIC insurance, and I'm surprised as how many people actually get this wrong. In any case, you are incorrect when you said my article was mistaken. I may not have described it clearly (read other response above for clarification), but it was not mistaken.


In the UK you are insured up to £35k (soon £50k) per person per FSA registation.

As multiple trading names operate under one registration (E.g. Lloyds & Scottish Widows) you have to be careful.


For the most part this is really general advice. Hard times might provide the motivation to follow it.

It has a few instances of 'recession advice' but nothing dramatic. I'd like to see articles actually specific to recession (ie: probably wouldn't work as well otherwise) advice. Business stuff like recession specific marketing, hiring, financing, etc. . & personal finance stuff like how to take advantage of real estate markets, money markets, etc.

Some things change in a recession (eg higher rent/buy ratios). It'd be nice to see them addressed.


It irritates me that he lumps together those that say The worst has come! along with those that say Now is the time to buy! It can be the right time to buy, even if you're not 100% sure that we've hit rock bottom.

As Warren Buffet put it: Be fearful when others are greedy, and greedy when others are fearful.

Well, there's a crap-ton of fear floating around right now, so maybe it's a good time to buy. Maybe not the best time, but if you know when that is, you already know the future so you've got nothing to worry about, right?


It's a good time to buy if you aren't looking to get out tomorrow. That's why day trading is such a shady and risky call.

Most of us will still be around when we pull out of this recession, so a buy anytime that we're in it is a good call... you may have to wade through a little muck, but it doesn't really matter if you make $10 or $20, what matters is that you make money.


Great article. I completely agree that we need to start thinking smarter before it is too late and we are up to our ears in debt. I also agree that there are numerous ways of getting extra cash such as starting a blog and placing ads on it. This is a way to have some fun, get your opinions out and possibly pay a bill or two.


Good article with some pretty intuitive and straightforward advice. I can't stress enough that one of the best places to move marketing dollars during tough time is Online. You can get more bang for your buck, better accountability, and greater engagement.

Just put up a blog post on it earlier today: http://www.newmediacampaigns.com/page/tough-times-squeezing-...

While this article shows you the best ways to not lose money during the recession, I think it's important for businesses to continue focus on making more money despite the economic conditions. If you spend efficiently during a recession, you'll do very well.


On the whole some good tips - I do think these should be applied more generally too. It's always important to stay lean and watch the bottom line.

I have to disagree on the point about putting 20% down on a property! I've grown up around property investment and in my opinion the current economics are brilliant. I'm getting ready to borrow more and more to snap up some great bargains. The important thing with property is cashflow... it doesn't matter whether prices fluctuate. Lower capital values just mean higher cashflow... so bring on the good times!


His first two points are wrong if there's inflation coming as the current crisis seems to precipitate, you should spend your money before it loses value..


No you shouldn't.

You should invest them.

If you are conservative, you can go for Treasury Inflation Protected Securities (TIPS)


This is definitely some sound advice, its important for small companies to stay pragmatic at times like this.


Nice article Kevin.




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