In This Article
In this article, I will cover how to prepare for an economic collapse in 8 simple steps.
Anyone can be kept awake at night by the prospect of being hit by a huge negative event that could damage their money, such as a job loss, illness, a vehicle accident—or a pandemic.
However, if you’re well-prepared, the danger of something costly and out of your control becomes less frightening. Unfortunately, the statistics are not positive – 3/4 Americans live paycheck to paycheck and the US more debt than it has ever owed before.
Here, I will cover how to best prepare for an economic collapse. Let’s dig in.
Step 1: Decrease Expenses
The first step to decreasing expenses is to look at your expenses right now and start a realistic budget.
A budget isn’t a parent; it can’t and won’t make you change your ways, but it can help you figure out if you’re pleased about where your hard-earned dollar is spent and where your financial state is.
Thrift shopping, coupon clipping, and so many more ways to decrease expenses in our prepper’s financial guide.
Step 2: Start a Garden
Vegetable and herb gardening is a handy skill to have, and you can grow vegetables, herbs, or if you know how to do it, raise animals.
This will firstly reduce your expenses and will provide an amazing source of fresh food for your family.
Here are the best resources I would highly recommend you read:
Step 3: Repair Debt
If you have credit card debt, the interest rates you must pay each month are likely to consume a large chunk of your monthly budget.
You will minimize your monthly financial commitments and put yourself in a better position to start creating a better nest egg if you make it a priority to pay down your credit card debt. You can put your money toward more vital things if you don’t have to pay interest.
Step 4: Stockpile ASAP
Step 5: Build New Sources of Income
Selling items you no longer use (either online or in a yard sale), babysitting, chasing credit card and bank account opening bonuses, freelancing, or finding a second job are all options for making extra money.
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.
Furthermore, many of these hobbies offer side benefits: you may find that you have a less cluttered home or that you enjoy your side work enough to make it your full-time job.
There are also many ways to profit off homesteading and such.
- Raise livestock and sell it to other homesteaders.
- Customers who want to eat organic meat can have it butchered and sold to them.
- Form a garden Run a worm farm and offer bait to anglers that want or need to catch fish.
- Start a seed-selling company.
- Raise chickens or other fowl for the purpose of selling eggs.
- For a U-pick company, plant an orchard or berries.
- Become a beekeeper and sell your honey.
- Split firewood and sell it.
Step 6: Get Better Card Deals
Paying less interest on your debt means you’ll be able to pay it off sooner and/or have more flexibility in your monthly budget. Simply be sure that the savings from the reduced interest rate outweigh the balance transfer cost.
If you’re transferring a balance to a new card with a low introductory annual percentage rate (APR), try to pay it off before the rate rises. It’s also worth checking with your current credit card issuer to see if they may reduce your monthly interest rate.
Companies will sometimes do this to keep you as a customer because it is less expensive to keep a current customer than to recruit a new one.
Step 7: Prepare Defense
In short, the higher the poverty rates, the more you will need to prepare defenses.
Firstly, secure your home physically to make it a less enticing target for criminals.
Strengthen and protect all entry points to your home; as a deterrent, plant prickly barriers (roses, prickly bushes); build sturdy fences; keep valuables out of sight and secure.
And, if appropriate, install alarm systems. Getting the whole family involved in finding weaknesses in your house is a terrific approach to find them.
Encourage members of your family or even a close friend to obtain entry to your home or belongings without destroying anything. This is a fantastic way for everyone to take a fresh look at your property and identify areas that need to be strengthened.
We highly recommend these sources:
Step 8: Sharpen Your Mind
Continue reading books on preparedness, read our blog and others, and start building more skills. This will help you in almost every circumstance, whether it is surviving when SHTF or building a strong evergreen skill that will land you a promotion.
The Bottom Line
Economic collapse is a very real issue with far-reaching implications that you must be concerned about.
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.
Now, we hope you learned something from this article, and if you liked it, please consider following us on Facebook, Twitter, Pinterest, Reddit, and Instagram. Also, consider sharing this content and subscribing to get 255 free ebooks.