Because there are many indicators pointing to an imminent economic recession, it is important to be prepared. Whether you are facing a job loss or a reduction in income, it is imperative that you take the appropriate measures to make things as comfortable as possible when the economy finally crashes.
There are three major things that we’d suggest you do before things go south. No one knows if the next recession will happen quickly or be long and slow, but either way, those who prepare will be much better off than those who do not. If you haven’t taken the time to look over your own personal finances, now is the time to do so.
- Pay Down Debts
Making sure your payments are at an absolute minimum when the economy crumbles will ensure you need less money to get by every month. Jobs will be harder to come by and layoffs skyrocket when there is a recession. Pay off your car and relieve that payment every month. You should also stop borrowing money. Even though the Federal Reserve decided to lower interest rates making borrowing look more appealing, it just is not the right time. Being in debt during an economic meltdown is going to make things much more difficult in the event of a job loss or a decrease in your passive income.
2. Save Some Cash
Once you’ve paid down or paid off your debts, save some money. Sure, the dollar could crash and savings may end up being worthless, but as of right now, we live under the dollar system, and people still accept them. You may even have some time to spend those saved dollars on precious metals before they completely lose all of their value. An emergency fund that can take you through a rough couple of months could be worth it. There’s no “right” number to shoot for. Just stash some cash away in a rainy day fund. In fact, just having a savings account could save you from the financial stresses of a medical emergency or an unexpected vehicle breakdown.
Once you’ve paid off enough of your debts that you’ve got some disposable income, buy some gold or silver. These are not an “investment” rather insurance. If the dollar loses all its value, and your savings account becomes worthless, having another form of currency could make a big difference. Gold has been around as a currency and “real money” for a lot longer than the dollar. And at the rate the government is going into debt and printing money to service said debt, the dollar’s value can’t and won’t last. Inflation or even hyperinflation is a very real possibility; however, gold can be insurance against this. Gold will still buy today what it would buy 100 years ago. The same cannot be said about the dollar or any other fiat currency for that matter!
The important thing to remember is that preparations for an economy crash take time. But as you acquire dollars, take into account the three steps above to help protect yourself against almost all financial emergencies. Also, consider signing up to receive emails from Future Money Trends. They deliver personal wealth-building advice in an ever-changing economic system.
Learn from the animals, imitate a squirrel and store some nuts. Live below your means not at it and certainly (debt) not above it. Now the more difficult part, get the wife to do the same.
Point on.
Kevin2, if you manage that last part, you’re a better man than any married man I HAVE EVER KNOWN!
Actually I did after about a dozen years. It wasn’t her “per se” but her kids (I’m actually a step dad). She way, way, way overindulged them because their father died. I don’t know how they turned out OK. She was always fugal with herself and the kids (thank God) don’t need (nor ask) for $$$$ anymore. I was the “mean guy” that made them adults. Now we got a journeyman electrician soon to be (hopefully) a master electrician and an oral surgical assistant with a BS degree (who started out with a GED). Smart girl that loved “bad boys” at one time. Neither drink much, neither like pot, both do smoke cigarettes however. From 13 to almost 30 it was difficult.
Kevin2, I’m glad to hear that your step kids have turned out really well. That’s a huge accomplishment these days.
I too dropped out of High School and got my GED. I went on to “bigger and better things”. Only because my family stood by me. Like you said, “From 13 to almost 30 it was difficult”. It’s scary to think what I might have become without their love and support.
“If the dollar loses all its value, and your savings account becomes worthless, having another form of currency could make a big difference.”
What a load of sh it!
America is fully self supporting. We don’t need to import things.
We have enough resources to support our society as it is today.
Indeed we can export a lot of “stuff”.
Democrat government policies cause our Dollar and import problems.
Hyperinflation occurs in places that need to import things.
We don’t need to import anything. We choose to, but we don’t have to import.
The Dollar is safe, but America isn’t safe as long as Democrats have political power.
relik, sorry man but we need to import a shitload of things! Radio stuff, electronics, I could go on for days. There are thousands of things that we are not setup to make here that are needed. If we stopped importing we would be fooked beyond belief! Until factories are built for everything we need here we DO depend on it. And I don’t see the brainpower of the millenials as big enough to handle it.
Gen,
I agree,
But us old farts can spin it up pretty fast.
You mention things that are needed.
That is the critical point.
What is needed and what is wanted?
Google is not needed.
Facebook is not needed.
Get my drift?
Boeing is needed.
US steel is needed.
ADM is needed.
You are worried about shoes and cell phones,
time to come on line isn’t all that long with
computers and automation,
which is what us old guys know how to do.
Womans studies are shiite.
I can design computer languages and teach
you how to do it.
The ROI is how fast we can deal with the
changes.
I assume the experience I have seen in industry is indicative of the country at large. The big plants Chemical & Oil Refining hadn’t trained maintenance , machinists, pipe fitters, electricians or instrument since about 1982, they fed off other plants downsizing or closing with the Philadelphia Navy Shipyard a huge amount. It was in essence a vulture feeding off the decaying carcass of manufacturing. Tooling up today would be extremely difficult.
I’ve started to keep a lot more cash in my get home bag because in the initial aftermath of an emergency cash may make a big difference.
I recently realized that it would be very difficult for me to walk a long distance. So my best bet is to 1) bribe someone for a ride; 2) stay at a hotel until I could enlist the calvary. In many SHTF events, it is worth betting on cash still being a valuable tool.
Do you have enough CASH in your “Get Home Bag”?
I wear a knee brace. I can’t run a 5 minute mile anymore,
but given time I can walk home even if it is 50 miles.
I’m almost overweight and very out of shape. But one thing I learned when I was a cross country runner was how to pace yourself and how to deal with the pain.
rellik, I too have a couple of physic impairments that I am trying to overcome through exercise. I am trying but I’m afraid some limitations cannot be overcome.
But like I said, I’m trying and I’ll accept whatever; “The best that I can do”. But I’ve dropped almost 15 pounds and my goal is 3 miles walking (I know that sounds bad, but old age tempers pride). I figure if I have to I can easily double that.
I just got back from my evening walk. I made good time but cut it short. I scout out the area where I walk. Man there is so much fallen wood available to harvest! That’s how you know your a prepper: when you case the neighborhood… your looking for firewood?!?!
i carry three gold one ounce coins when i go very far from home. if the excrement DOES hit the rotating mass of twisted metal, you better have something really valuable with you to try and make it back home.
I look at many of my preps as an investment. Next month I will pay $70.00 for a saw. Why? Because one way or the other (unable to pay my electric bill) I could loose electricity. That would impact cooking. Eventually, I would run out of various fuels I store. Plus, the large fire log bin/rack full of Charcoal and Wood pellets would run out. I would need to harvest firewood from local woods and forests!
Another example, I purchased a couple of old TV antennas for when I cannot afford cable. Plus I have all my favorite TV shows and movies available when internet and streaming services become a luxury I can no longer afford. This is the main reason I prep, not the END OF THE WORLD!
Agree, i dont have money to invest, have chosen to walk away from a conventional job or anything like that,
However, when i do end up with extra cash, it goes into materials and such that can be used to make much more valuable products, a for instance, i taught myself how to make shoes, boots specifically, have an excellent stock of leather, canvas, rubber sheet goods for soles, soles, threads, etc etc,,,
This is just one trade i have under my belt,
Another for instance,
I have a stock of high carbon steel and the ability to make knives, tomahawks and other cutting tools.
I can sew, so have a huge assortment of fabrics, mostly canvas and cordura but also liner material like fleece etc,
I feel innovation will be worth more than dollars, and it may be useful at some point beyond my need for these things in my day to day life
Nailbanger, making and repairing shoes is a great trade to know. People that have a trade like that, will do okay in bad times.
Nail,
Interesting post!
I thought you bailed on Kale farming, bought a very expensive
Hawaiian style truck and went back to carpentry.
Now you are a “cobbler”? or more accurately a
“cordwainer”.
Keep on Bra!
Personally I wear Bates Side zip boots made in Bangladesh, and I repair them with 3M 5200
Every prepper should have 3M 5200 somewhere. Most indestructible adhesive ever devised.
Takes forever( 1 week) to set up but they build
airplanes with it. Indestructible.
Off subject;
We are going to try Garlic, Potatoes, watermelon, and beans.
after labor day, any advise?