How to : Preparing for a Recession

A shaky housing market, wobbly stocks and inflation have many concerned. Preparing for a recession has become a mainstream topic. While it's hard to know exactly what is in store for the nation, or your state in particular, the warning signs are troubling. Preparation is key to surviving a recession or even worse, a prolonged economic depression. Here's how to get started preparing for a recession.

Difficulty: Moderate

Instructions

1. 

   Prepare your long-term food storage pantry. You should have enough stored food to last your family six months (ideally, a year) with little supplementing. This is an excellent insurance policy in unstable financial times. In the case of job loss, your family can eat from your food storage while a new job is sought. In the case of crop shortages, you can ride out rising grocery prices until the next harvest brings some relief.

2. 

   Learn how to garden to raise some of your own food. Lettuce, tomatoes, and other vegetables will cost pennies versus buying at the store. Try container gardening for small spaces or inadequate soil conditions. You might even try keeping a few hens for eggs. Urban farming will likely come back into vogue in hard economic times. If you have acreage in the country, keep a steer for beef and more chickens for meat. You'll save considerably.

3. 

   Buy local produce and local farm foods. Support your local economy and ensure a local source of food when times are hard. You'll often save money, especially as rising gas prices take grocery store prices another notch higher.

4. 

   Get your finances in order. Preparing for a recession will mean different things to you depending on your situation, but by all means, do what you can now to prepare economically. At the very basic level, try to pay down debt and have an affordable housing situation.

5. 

   Consider investing in essential sectors, such as medicine, and in precious metals, such as silver, to weather a recession. There are several very good sites with advice on investing for a recession; do your research and look at track records. Invest for the long term rather than to get rich quickly.

6. 

   Develop your skills. Handymen, mechanics and plumbers are always in demand, especially when people try to fix rather than throw out their appliances and vehicles. If gas prices continue to rise, a side gig as a bicycle repairman and used bike salesmen could turn into a booming business.

Tips & Warnings

• Live frugally. When money is tight, watch your budget carefully.

Resources

• Mvelopes personal finance software
• Storey's Guide to Raising Chickens
• Gardening When It Counts: Growing Food in Hard Times
• Ultimate Family Preparedness Pak

[LilacGirl]

on 6/1/2008 Good ideas for preparing for a recession.

[hollianna]

on 5/14/2008 Great tips. I hope things get better, but in case they don't, we need to be prepared! I'm already growing a garden but need to work on the food storage.

Thanks for the tips. 5 stars!