How to Survive and Thrive after Total Economic Collapse
If prevention is worth a pound of cure, preparation of an impending economic collapse is more beneficial than attempting to navigate a depression post-collapse. If you suspect the future could mean a halt in economic growth and total economic failure, you can organize a plan now to both survive and thrive amid failure of the world financial system. Rather than merely find a way to endure an economic crash, learning how to meet the demands of others could make your finances flourish during the downturn.
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Pay off as many of your debts as possible in preparation of a potential economic collapse. Allocate a portion of your disposable income to paying off your debts completely, rather than paying only the minimum payments and carrying a revolving balance from month to month. If economic calamity leaves you with few monetary resources, you'll want to avoid aggravations from debt collectors and lawsuits from creditors you cannot afford to repay.
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Create an emergency monetary reserve that includes currency outside of standard government currency. An economic collapse could mean a collapse of the dollar or other government currency, meaning you need other forms of currency for buying and selling. According to Sean Broderick, the small-caps and natural resources specialist for Weiss Research, gold provides protection against both a currency and government collapse.
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Spread your investments among precious metals, resource-rich countries and stocks with staying power. Don't put all your money into one asset or investment. For example, when economic recession led to a stock market collapse in 2008 and unemployment began creeping upward, canned soup stocks thrived due to inexpensive prices, and investors made a profit while other stocks were plummeting.
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Learn to garden and stockpile foods. Plant foods that are indigenous to your area to avoid high-maintenance gardening work. If the economy collapses due to a low availability of commodities, hyper-inflation may occur, making groceries less affordable. Keep large supplies of grains, rice, beans, yeast and evaporated milk on hand in case of a food shortage.
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Learn a basic trade that helps fulfill a living necessity. Choose a skill such as appliance repair, car mechanical repair, sewing or farming -- skills you can use to barter or purchase goods and foods from other people. Rather than purchase new cars or upgrade to luxury appliances, save money by repairing and maintaining items you already own.
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References
- Bankrate.com; How to Deal with the Coming Economic Crisis; Sheyna Steiner; January 14, 2010
- Bankrate.com; 4 Dumb Financial Moves in the Recession; Marilyn Kennedy Melia; September 16, 2009
- Bankrate.com; What to Do in Case Disaster Strikes; Barbara Whelehan; April 13, 2010
- CNNMoney; 3 Stocks that Beat the Recession; Scott Cendrowski; September 15, 2010
Resources
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