How to Prepare for a Depression Era
Economic depression eras are rare events and are often hard to predict. Leading economists cannot agree if or when they are going to happen. Each depression or recession is different. So, it is best for you to be prepared at all times. A financial depression era does not have to become a personal apocalypse. Riding out the rough times will leave you better prepared for the good times, too.
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Instructions
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Keep a float equivalent to three months or more wages. This will give you a buffer zone should you lose your job. It gives you three months to find new work without having to rely on benefits.
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Avoid debt as much as you can. In times of plenty, make sure your credit cards are paid off, and if possible, cancel them. In a depression, interest rates are likely to go up. Make sure you have an affordable mortgage and keep atop of the small print to avoid foreclosure.
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Shop wisely; go for discount buys and take advantage of special offers. If you can keep stocked up on long-lasting goods, it will cut down on your expenditure during leaner times. Bulk buy if you can and talk to the store clerks, as many shops offer discounts on bulk orders.
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Grow your own vegetables. If you have a garden, learn how to use it and grow your own vegetables. In the long run it will cut down on your expenses and give you a ready source of food during tougher times. If your garden is too small, many towns and cities have allotment associations.
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Stock up on nonfood items such as gasoline, cleaning products and toilet tissue. Keep an emergency stock in your loft or garage.
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Cut down on nonessential costs. Do you need to buy a new cell phone every six months? Can you do without the new furniture? Do you need to take the car to a car wash or can you do it yourself?
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Reduce energy bills by insulating your house, installing ceiling fans for the summer and turning off lights and appliances when you are not using them. If you can afford a solar panel, invest in it, as you can sell excess energy back to energy providers for a profit.
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Tips & Warnings
It is an emotional issue, but in times of need it might come to selling the family china or other valuables, so get a professional appraisal and find out their true value before you have to sell.
Pretend you are worse off than you are. Do not go asking for charity, but do not make yourself a target for thieves either. Keep your back-up stock secure and out of sight.
References
Resources
- Photo Credit Old Street Sign image by hector from Fotolia.com
