How to prepare for an economic emergency.

It doesn't matter if it's runaway inflation, job loss, or your bank has suddenly shut the door. It doesn't matter if you make twenty-five thousand dollars a year or a million. Economic emergencies hit almost everyone at some point in time in their life. But there are ways to prepare for such emergencies that will give you peace of mind.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Room to store things, computer, paper, pen, safe or safety deposit box.

1. Keep six months to a years worth of food stored in your house for times of job loss or unavailability of money. Canned foods need to be rotated yearly. Keep boxed foods in tight garbage cans to avoid rodent damage. Be sure to chose canned goods that you like to eat. If no one likes those canned goods, you'll waste your money buying them.

2. Keep a stash of silver and gold coins in your safety deposit box. Acquire these over time, if you must, and always buy from a reputable dealer. Keep them for times like now when inflation is beating the growth of wages.

3. Keep educating yourself. Classes can be taken at night or online, and sometimes the employers will pay for them. You will become a more valuable employee and certainly more attractive to another employer. Also, in the event of a layoff, you have an edge on other applicants when it comes to being up to date on the newest ideas in your industry.

4. Even if you don't see a problem with your current employment, keep an eye on new job openings. In case of a layoff, you will be prepared to hit the streets in motion.

5. Get involved in the community. Volunteering time and energy to worthwhile projects keeps your network rich with friends. In case of a layoff, you can turn to them to help you seek a new job.

6. Keep a year's supply of cash in a money market or savings account. It may be that you have to build upon it every month to get it up to where it should be, but a full year's worth of cash will come in quite handy if you no longer have an income.

7. If your wallet is getting more stressed now, begin to cut the fat from your budget. Sit down and make a list of 20 ways you could save money. Here are some suggestions: Eliminate eating out as often. When you do eat out, order less expensive menu items. Skip the pop and drink water at meals. Skip dessert when dining out and eat that at home.
   Shop second hand stores for clothing and household goods, or pawn shops for new tools, DVDs or electronic equipment.
   Afraid of expensive ticket prices at the movies? Attend the matinees or eat before you go so you don't need to use the concession stand.
   Learn to cook gourmet meals at home instead of dining out. Take along picnic lunches instead of eating out.
   You'll think of good ways to save and retain money if you just make a list.

8. Time for one last list: create of list of life enhancing activities that are free or low cost. Here are a few suggestions: Go on bike rides with someone you love. Grow your own vegetables and fruits. Read books aloud to your children instead of renting and watching movies. Teach your kids how to cook. Teach a class on a subject with which you feel a passion. Sightsee in the area around you instead of driving across the country. There are dozens of low expense ways you can enrich your life, but make a list and decide which will be the best for you.

Tips & Warnings

• Keep those lists handy to refer back for new ideas.
• Itemize your assets and examine them bi monthly to see if your assets are growing or being eaten. Modify your strategy to fit the situation.
• Use your common sense when deciding how to prepare for a future problem. Most people who don't prepare go through a serious depression after a job loss, and then are out of the workforce longer. Like a good Boy Scout, be prepared.
• Always keep valuables locked in a safety deposit box. It's much easier to stash one or two valuable coins someplace in hiding in your house that you can turn into cash should a bank be closed, than it is to try to get into a safety deposit box of a bank in turmoil.
• Be vigilant about your future during times of economic adversity. Don't start these lists and never follow through with them.
• Don't get involved in community activities just for your own personal gain. Others around you detect selfishness like a big pink bow in your hair, and then all your work will be for naught. Find a cause or two that you care about and dedicate some time to it. Tat will make your service more enjoyable.

[wearmanyhats]

on 3/5/2009 Thank you!

[amazedanew]

on 3/5/2009 Excellent article--well-written and with very useful pointers. Thanks :) I've recommended you.