The Recessionista Fashionista

Hana Miller ,  The Jakarta Post - WEEKENDER   |  Fri, 05/22/2009 2:36 PM  |  Profile

“The events leading up to last September were obvious to anyone who studies economics,” says Jill Keto, Seattle-based author of the book Don’t Get Caught With Your Skirt Down: A Practical Girl’s Guide to the Recession.

“This is why I was able to have my book out last summer, before the collapse. I had the advantage of knowing about what was happening before it occurred.”

Co-authored with her husband, economist Daniel Keto, the book’s accessible approach to the current economic climate in the United States has established a staunch following of readers, mostly women, who find it a valuable source for understanding how to make the most of their finances during this time. Many continue to follow Keto’s updates on her blog at www.practicalchic.org, where she keeps tabs with a weekly “Recession Trend Tracker: What’s Hot, What’s Not” and chronicles her own process as a mother, wife and entrepreneur.

Taking the time to answer a few questions about her book and money matters, Keto tells us about the resilience of practical household skills, the “hot” recession-proof industries and why the color yellow is in.

Your inspiration?

So few of the women I knew wanted to acknowledge or deal with the fact that the economy was going south. There was a lot of fear and no practical solutions for women specifically, which I felt needed to be addressed. My goal is to empower women to make the best choices for themselves and their families in these difficult times.

Your background?

My family has been preparing for the financial collapse since 2005 and 2006. My husband is an economist by education so we are always discussing it as a family. I am a mother of two, a former mechanical engineer, and a business owner since the age of 19. I am very interested in economics because it helps me adjust my career and business for success. Between my husband and I, we know a lot about economics from the theoretical (his specialty) to the practical life implications (my specialty). We make a great partnership, but the book is in my voice. I’m lucky I had a mother who taught me how to write well as a small child. I certainly didn’t learn that in school.

What can readers expect to learn from the book?

How to react to the new economy, prepare for the worst and eliminate fear. They can learn how to spend less but have a beautiful life in which they do not have to sacrifice taste, quality or style. They can also learn about future trends to help them increase income and also to guard their savings.

Financial advice?

Cash flow is king, not cash. The value of US dollars can and will be inflated away through massive money creation by our federal reserve. However, if you can keep your monthly cash flow positive (your income outweighing your expenses) you will sail through this recession. Eliminate non-mortgage debt, it will become way too expensive.

“Recession proof” jobs?

Right now the hot industries are federal government, medical and education. However, there is increased business activity in the buying and selling of used goods, food and other basics that people need, and services like repair. People are going to be fixing what they have instead of buying new. There are lots of business opportunities in this area. I’d also say that jobs in companies that manufacture a product that exports all around the world (not just in the United States) will do well. Alternative energy will be in demand, as will engineering jobs, including agriculture and mining. Resource companies like coal, oil, steel, water, etc. will do well.

The best investments?

My favorite investments right now are yellow: corn, gold and wheat. Basically, precious metals are going to go through the roof (gold and silver). Agricultural commodities are going up as well; it’s a supply and demand issue. My least favorite place to store savings is the US dollar and US treasuries.

Most important skills?

Being able to fix things, being resourceful, being creative and having the willingness to adjust and adapt without pouting about it. Attitude is everything in a situation like this. Being able to speak multiple languages will be helpful, and brings income opportunities in other countries. Being able to grow your own food will be valuable, as well as sewing, metal-smithing, woodworking skills, etc. It comes in handy even if you don’t do this stuff for a living. Being able to spot opportunities amidst chaos and tune out the negativity will be a huge skill to cultivate.

The bright side?

Family and community closeness. While interviewing people who lived through the Great Depression, the one thing that they all said was that they appreciated the sense of closeness with others during that time, and they were actually HAPPY. I think people will have to entertain themselves by being with others, as opposed to shopping, buying and commercial pursuits. Additionally, once the US flushes all of this debt and corruption away, we’ll be able to rebuild a real, solid, stable economy.

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