In this article, you will learn how to prepare for hyperinflation.
It’s no secret that the U.S. dollar is losing its purchasing power by the day. Still, hyperinflation can be a daunting term for people without experience in economics to wrap their heads around.
If you’re looking for some tips on how to prepare for hyperinflation, though, you’ll find them in this list of 7 simple steps to better prepare you for what is going to be inevitable.
Without further ado, let’s dive right in.
1. Create More Streams of Income
This first reason may seem like common sense for some people, but it’s also one of the most crucial steps you can take to prepare for hyperinflation. The more streams of income you have, the more options you’ll have if one stream dries up.
Some of your streams can be entirely passive. One great way to avoid paying steep taxes on your income is to hold it in assets that don’t generate income. For example, holding gold or other precious metals keeps your assets safe and out of the hands of the government.
There are even ways to invest in gold without having any physical gold (Sounds crazy, right?).
If you would like to learn more about building more streams of income, refer to our passive income article.
2. Investment Diversification
Ever heard of the saying, “don’t put all of your eggs in one basket?” Well, if one of your streams of income dries up, you’ll want to have a way to generate income from other streams.
In addition to having a healthy savings account, consider diversifying into other sectors as well, such as gold, silver, or even cryptocurrency, if you like risk.
3. Reduce Saving Dollars
A common misconception is that when hyperinflation hits, you’ll be able to buy more goods when you convert your dollars to other currencies.
Hyperinflation really means that the value of your dollar falls so much about the value of everything else that it takes many more dollars to purchase things compared with today.
Even if you convert all your savings into gold or silver, hyperinflation will destroy their purchasing power just as quickly. Instead, invest in commodities and stocks in stable developing economies outside of the United States.
4. Don’t count on Social Security or Medicare
When the U.S. government runs out of money, these programs will be the first to go. In fact, current projections show that they’ll be unable to pay full retirement benefits by 2035 at the latest.
Combining these two factors could cause a mass exodus from the workforce and a steep decline in economic output – both situations that can make hyperinflation more likely.
5. Avoid Debt Like the Plague
Inflation takes a heavy toll on people who have debt, as their debts become less and less valuable over time. In addition to having low-interest savings accounts, avoid personal loans.
6. Be Ready to Move
If it becomes clear that hyperinflation is getting worse or that the government has begun rationing groceries or other goods, you may want to consider moving overseas.
One good spot could be Panama, where many people are already moving their money offshore for just this reason, among many others. You should also consider living off-grid in the U.S., where you will be self-sustaining if you are unwilling to move overseas.
Refer to our off-grid home building article to learn more about off-grid living.
7. Stock Up on Food
Continue to stockpile food and home items. This will provide you with a much-needed buffer of time if prices rise. During hyperinflation, the cost of food constantly rises. Add items like vinegar, bleach, and baking soda to your grocery list that may be used for a variety of purposes.
Final Words
Hyperinflation is just one of many events that are on the horizon, but it’s important to learn about them so that you can take steps to prepare for them. While hyperinflation hasn’t arrived yet, the threat of it is very real.
History abounds with examples of people who ignored warnings about impending disasters and paid the price later on. It’s not worth waiting until it’s too late to start preparing for hyperinflation, however. You can protect yourself by starting today!
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