If an economic collapse occurs, it’s going to happen quickly and unannounced. Although a crisis could be a great symptom of a nearing economic downfall, one cannot exactly tell when, how, and why it’s going to happen.
We recently discussed in a previous article what would happen in an economic downfall and if our country is close to experiencing. Knowing that it is inevitable and unpredictable, we will help you start preparing for an economic collapse.
There are many things you need to prepare for when an economic collapse is about to occur. You need to store as much food and water as possible, have a bug out plan, learn self-defense, and try the barter system! This article will focus first on how you should handle your finances to become more ready for the SHTF scenario.
Reduce Your Expenses
Instead of buying that new car or taking that luxury vacation, repair your current vehicle and take a vacation that costs less so you can save that money.
This is not just about the materials you buy. You need to start conserving energy as well. This not only gets your family in the habit of using electricity only when needed but it will reduce the amount you pay out monthly toward electricity costs. Here are some other tips you can follow to reduce your expenses:
- Consider alternate companies for insurance, cable TV, cell phone plan, etc.
- Cut back on unnecessary luxuries. You don’t need to buy snacks in the store while going home when there’s soup at home.
- You can also start selling your expensive items! Items you sell will bring in money that you can put into savings, or use to buy supplies or pay off debt.
- Practice recycling, upcycling, and composting so that your family produces the least amount of garbage possible. See if you can eliminate the need to pay for garbage collection
Start an Emergency Fund
This is one of the many steps you can take to prepare for any financial trouble. It will give you a bit of a cushion during hard times and can provide you with a fund to buy last-minute supplies before the dollar devalues.
Have Cash on Hand All the Time
Banks may freeze and seize your accounts. You won’t be able to use your credit card nor withdraw money. Paper currency will play a major role in an economic collapse. It’s how people will buy and sell during the initial phases of the crisis, especially if a bank holiday is declared
Get Out of Debt
During an economic collapse, you may lose your home and other properties to debt collectors. They’ll do this as their industry is approaching crisis mode, so pay your loans as soon as possible.
Use an app to round up purchases to the nearest one dollar and automatically put that change amount into a savings account. You won’t miss less than a dollar at a time and you can build a savings account up quickly.
Diversify Your Income Streams
Many people think that the way to be successful is to stay loyal to a job and work hard for a greater position and retire with a pension. It doesn’t work like that anymore.
You need to have many sources of income in your family. Try getting a part-time or start your own business. Selling your own goods or services in an area that will still be needed after an economic collapse will be very much helpful. These include cooking, landscaping, midwifery, etc.
Stop Relying on Money
An economic downfall may result in the dollar losing its value, so it’s important to have alternatives. One way is by simply being self-sufficient. Instead of buying, learn how to make your own food and purify your own water.
Try buying precious metals too. Gold can increase in value during an economic crisis and can be used to hedge against hyperinflation. While federal reserves around the world are printing worthless paper money, you’ll have gold or silver to use as legal tender. Livestock, gas, oil, and crops are also other hard assets you can invest in.