How to Survive the Greatest Depression

The Greatest Depression is a term being used to distinguish the economic downturn of 2008 and beyond from the previous Great Depression of the 1920s. Economists project that if the recession turns into a depression, it will be longer and deeper than its predecessor, hence the term "Greatest Depression."

Difficulty: Moderately Challenging

Instructions

1. 
   Eat Cheaply.

   Prepare for the greatest depression even before its full effects are evident. Live below your means, saving cash and stocking up on necessities while you are able. In case of job loss or inflation, having the means to get by will be crucial.

2. 
   Out of business

   Get out of job sectors most affected by economic recessions. If you are in consumer sales, construction, luxury services or other areas of the economy known to suffer in a downturn, make plans to find another means of employment or self-employment in a more critical sector.

3. 
   Officially a Recession

   Pay attention to the world around you and don't wait for the new media to tell you what's going on. After all, the American people knew we were in a recession months before it was "official" and despite the assurance to the contrary from government officials and news outlets. Watch for closed businesses, unemployed friends, rising grocery prices and other signs of economic struggle.

4. 
   GDP drops

   Watch GDP figures to predict a further downward trend or an improvement in the economy. Compared to previous downturns, the start of the Greatest Depression shows some bleak figures.

5. 
   Earn extra money

   Be creative in finding ways to support your family. Even while you still have a job, diversify your income streams so that you have money coming in from a variety of sources. Could you write articles online for revenue-sharing sites or your own websites? What about a resume-writing service to help the unemployed improve their chances of employment? Renting out a garage apartment to help pay the mortgage? Think proactively.

6. 
   Learn self- sufficiency

   Live where you can grow or raise some of your own food. In a dire situation, being able to grow tomatoes or raise chickens can make a huge difference.

Tips & Warnings

• An ounce of preparation will be worth its weight in gold ... perhaps literally.
• Shop second hand for household goods and clothes to save money when cash is tight.
• Cook from scratch and pay attention to grocery specials.

Resources

• The Great Bust Ahead: The Greatest Depression in American and UK History
• Financial Armageddon: Protecting Your Future
• The Revolution: A Manifesto by Ron Paul
• The Little Book of Bull Moves in Bear Markets: How to Keep Your Portfolio Up When the Market is Down
• Mountain House Freeze-Dried Food
• Family 72-hour Survival Kits

[rickmac]

on 4/16/2009 Diversifying your skillsets is really important. Thanks for the proactive advice.

[russellcox]

on 4/6/2009 Even if the recession doesn't turn into a depression, this article is still right on. These are commonsense things most people should be doing anyway to save money and stay out of debt. If Americans were saving and be more self-reliant we wouldn't be in the mess we're in. Our economy is is awful shape because we've been living on credit for years, and now the check is coming due.

[insidestory]

on 3/8/2009 Good for us all to do now. We can't put our heads in the sand, and prepare. Thank for your insight.

[triciagoss]

on 2/28/2009 Terrific advice, and actually good tips to live by any time!

[bizzyliz]

on 2/26/2009 Good article.