The world is an ever-changing place, and with that comes the possibility of economic collapse. So, you might wonder, how to prepare for an economic collapse.
Although it can be challenging, it’s important to have some kind of plan in case you find yourself affected by one. There are several steps you can take now to make sure your family has what they need if there were an unexpected economic downturn due to a great recession.
This article will provide tips on how best to prepare for such a situation so that your household remains safe and secure during any eventuality.
Let’s dig in.
Step 1: Decrease Expenses
Decreasing expenses is a crucial step in preparing for a global recession. Cutting unnecessary expenditures can free up money to use towards other aspects of prepping and hardening your finances against the coming great depression.
Start by analyzing where you are spending too much money, like eating out or entertainment services that may be more costly than needed. Research ways to reduce these costs such as finding coupons, discounts, and cheaper alternatives when possible.
When making purchases consider quality over quantity; look at how long it will last rather than immediate gratification from buying something new every few months because it isn’t lasting very long anymore!
Consider taking advantage of government assistance programs if available in order to help pay essential bills during difficult times ahead. This could mean anything from food stamps to energy cost savings initiatives provided through local utility companies or federal agencies such as HUD’s Weatherization Assistance Program (WAP).
Lastly, create budgets with clear goals on what needs saving before any additional funds are spent frivolously – having financial discipline now means being better prepared later!
Thrift shopping, coupon clipping, and so many more ways to decrease expenses in our prepper’s financial guide.
Step 2: Start a Garden
Start a garden to be well-prepared for an economic collapse. Planting and harvesting your own food is the second step towards self-sufficiency in such trying times.
Growing vegetables, herbs, fruits or even livestock can help you save money on groceries while providing nourishment during a financial crisis.
Planning ahead when planting will also ensure that crops are ready at different points throughout the year so there’s always something available right away as opposed to waiting months before harvest season arrives again.
Prioritizing long-term storage methods like freezing and drying out excess produce means it’s easier to retain nutrients over extended lengths of time without having them go bad prematurely.
Making sure soil quality is ideal by testing fertility levels beforehand. This leads to success later down the line once seeds have been planted.
It also helps determine which kind of plants may do best given what particular area it has access to geographically speaking. Factoring sunlight exposure amounts from nearby trees/buildings and all other factor for creating optimal conditions.
Here are the best resources I would highly recommend you read:
Step 3: Repair Debt
Eliminate unnecessary expenses and focus on reducing debt. High interest debt is the kryptonite of a financially sound retirement, with rising interest rates. Create a budget with realistic goals for paying off debts in the most efficient way possible. Watch some Dave Ramsey if you need help with this.
You should cut up credit cards to limit impulse spending, or set guidelines such as only using them when absolutely necessary. Transferring high-interest balances from one card to another can also help save money over time by avoiding accumulated interest charges.
Additionally, consider consolidating your loans so that all of your payments are organized into one monthly installment payment plan at an affordable rate instead of several different lenders each month in order for you to be able to make steady progress towards repaying what is owed faster than before consolidation took place.
Once you pay off your debt, investing your money into the stock market is a possibility. However, you’ll need to do economic research and have a strong emergency fund in your savings account before doing that since you can lose everything in the stock market. Your emergency funds should have 3-6 months of living expenses.
Step 4: Stockpile ASAP
Stockpiling is essential for an economic collapse. Start by stocking up on non-perishable food items, toiletries, and other basic necessities like water and medication.
Consider investing in a supply of cash as well – it will be important to have hard currency if the economy collapses or banks close down temporarily.
In addition, consider acquiring durable goods that can help you survive during tough times such as camping gear and tools.
Don’t forget about securing your home with security measures such as locks and alarms; this way you are safeguarded from potential looters who may target vulnerable homes should society break down further due to an economic crisis
There are a few things that I highly recommend you stockpile on.
- Food – here are the foods to hoard
- Medication and First aid supplies
- Firestarters (lighters and matches)
- Hygiene Items (Toothbrush/paste, toilet paper, Soap)
- Common barter items – here are the best barter items
- Security supplies
Step 5: Build New Sources of Income
Although the money you receive from these activities may appear modest in comparison to what you earn from your main work, even modest amounts might add up to something important over time.
This will help prepare you from a job loss, when unemployment rates are sky high.
Here are some ideas for you:
- Consider starting a side hustle to earn supplemental income in the event of an economic collapse. Look into gig economy jobs that are flexible and can be done online or through apps such as Postmates, DoorDash, Uber Eats, etc. Freelance work like graphic design or writing services, selling items on eBay/Amazon marketplace, direct sales businesses (cosmetics), becoming an Airbnb host, and more.
- Develop new skills you think may become valuable after a financial downturn hits – learn coding languages like Python and Java for web development & software engineering; start learning about cryptocurrency technology; consider taking up tradesman jobs where there is always demand regardless of market conditions e.g plumbing/electrical works etc.; join local barter groups which will allow you to trade goods and services with your community instead having money exchanged when needed during hard times ahead.
- Take advantage of government assistance programs available if ever the need arises. Research unemployment benefits from state governments, food stamps programs provided by the US Department Of Agriculture, and Supplemental Security Income(SSI) offered under the Social Security Administration.
Step 6: Get Better Card Deals
To prepare for an economic collapse, getting better card deals is important. Look into cash backs and rewards cards that provide discounts on purchases or airline miles when you use them.
Be careful of shopaholic behavior since these types of cards can easily encourage overspending if not used responsibly. This could lead to credit card debt, which is never good.
Make sure the benefits outweigh any potential costs associated with the credit card to truly gain from its features. If you use it right, you can earn money, and get a healthier credit score, while keeping a healthy emergency savings.
Step 7: Prepare Defense
In short, the higher the poverty rates (especially in economic hardship), the more you will need to prepare defenses.
Firstly, stock up on weapons and ammunition. Having the ability to defend yourself with firearms is essential in an economic collapse as resources become scarce and crime increases.
Next, strengthen your home security system by installing locks, alarms, cameras or fences around property lines for extra protection against intruders looking for supplies during a crisis.
Finally, have emergency exits planned out of your house in case you need to flee quickly due to danger outside; plan alternate routes if possible so that it’s not always the same escape route used each time there is trouble ahead.
We highly recommend these sources:
- 12 SHTF Home Security Tips To Fortify Your Home
- Home Security Mistakes & Why (15 Surprising Mistakes)
Step 8: Sharpen Your Mind
Preparing your mind for a potential economic collapse is of paramount importance. The best way to do this is by staying informed on the latest news and trends in economics, finance, politics, and global events that could have an impact on our economy.
Read widely from reliable sources such as government websites, newspapers or magazines with financial sections.
Diversify your knowledge base across different disciplines, so you’re better equipped when making decisions about how to protect yourself financially during times of crisis.
Learn new skills like gardening or budgeting which can help make life easier if needed down the road; being prepared mentally will give you confidence should tough circumstances arise.
Finally, stay positive! While it’s important to know what may be coming around the corner economically speaking – don’t forget to maintain perspective: most people are able to withstand hard times without falling into poverty due largely because they have resilience built up over time through learning activities designed specifically towards preparing them for difficult situations ahead
The Bottom Line
Economic collapse is a very real issue with far-reaching implications that you must be concerned about. It’s time to start taking your personal finance seriously and prepare for an economic decline.
What are you waiting for? While no one here is making any specific predictions, and I certainly can’t guarantee that it will happen on this date or this year, I can tell you that the possibility is very real.
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