Don't start partying yet!

Here's some practical analysis I've seen, once again from CNBC. It's historically taken one to two years after a stock market recovery happens before unemployment declines. So don't start living the highlife yet (unless you're fortunate enough to have become a Phat Kat before this Depression started & are doing ok now).

As soon as I find decent work, I'm getting a van to live in. What I mean is that I will continue to live low, so as to:
1) Pay off my debts.
2) Sock away as much as possiblt into IRAs, 401(k)s, etc. When the market continues to rebound, these'll go up. Plus I'll have some reserve ready cash, Ohshit Money, I call it.

I've seen many people put themselves in a deeper hole because they don't have the reserve ready for the inevitable life emergencies. Their vehicle needs major maintenance, but they can't get a loan for a new transmission, so instead of spending $2500 to fix the paid for car, they go into debt for $25000 for a newer one.

I know that we need to treat ourselves, reward ourselves for good behavior. I'm attempting to change my ingrained perception of that to one that's less of going to Hawaii, and more to one that's "It feels great to be two months ahead on all of the bills." That's a serious vacation from stress.

I figure that if I do this well enough, by the time the next major down cycle occurs in 6-12 years I'll be sitting on a nice wad and be able to buy all the stuff that other people splurged on & have to get rid of during a fire sale. Maybe then I can finally have a turn at being a Phat Kat.