Prepping seems to be a dire need of recent times, especially for those involved in digital businesses. According to the latest estimation, there are more than 3 million preppers in America. The most common danger these people are preparing for is the impending economic crisis. Since the global dept is increasing at a dangerous rate and the leverage and risks associated with it can collapse any moment, it’s a need to remain well prepared for such a crisis. Given below is a list of strategies to prepare for an economic collapse.
Don’t Put All Your Money in A Single Place
It’s never wise to have a single resource for all your financial savings. You must have multiple bank accounts so that it won’t be easy to locate and wipe out all of your money. The savings of a person must always be distributed in a number of places to ensure better financial security.
Build an Emergency Fund from Your Savings
The most destructive approach towards life is not to save anything for your bad times. You must always have a backup plan in case you lose your job. The wisest approach is to spend after saving, not to save after spending. During major economic crisis, almost every organization starts massive downsizing and a great number of people lose their means for survival. Hence, it’s absolutely mandatory to always have a saving fund. Cut down on your luxuries and prepare for survival in the long run. Your saving fund must be large enough to pay for your food, shelter, mortgages and other necessary stuff for at least a year.
Don’t Remain Indebted
Many people have the misconception that they’ll be free of their dept when an economic collapse arises. However, it’s far from reality. If you’re under heavy dept, then you’ll be in a very critical situation in an economic crisis as the dept collectors become ruthless and demand all of their money within an extremely short time period.
Always Have Some Savings At Home
Just as you need to have multiple bank accounts, it’s mandatory to have some money at home to deal with an emergency. In case the ATM machines stop working or there’s a sudden extended bank holiday, you must have enough money at home to sustain you for a few days. Keep a secret safe at home and keep your money in that safe. There are other survival tools like a bright flashlight that you should keep in this safe as well.
Start Your Own Side Business
If you’re not making much out of your regular income and it’s not possible for you to save for the tough times, then you must increase your finances by starting a small side business. Starting a side business will also empower you and you’ll be less dependent on your current job. Also, choose a business in which you don’t have to invest a lot of money.
Cut Down On Your Daily Expenses
It’s about time we draw a clear line between our necessities and luxuries. A lot of people aren’t able to save a sufficient amount of money because of their extravagant expenses. But it’s not necessary to buy Gucci bags or wear branded clothes at all times. Similarly, you can cut down on your dine-out expenses and other luxuries to safe a hefty sum to deal with the economic crisis.
Stock Silver and Gold
Considering the speed with which money is being printed by the global banks, it’s a given that inflation will touch its highest limits in the coming years. The US dollar can be crushed very badly and this crisis will heavily affect those who have most of their savings in dollars. This is why it’s advisable to invest in silver, gold, platinum, diamond, or any other valuable metal. Also, this can be a really profitable investment as the price of these metals is expected to rise in future.
Don’t Be Dependent on the Power Grid
You can start using rain barrels for collecting water, hang the clothes to air dry, direct the water from the washing machine to different reservoirs, and make use of sunlight as much as possible. This will lower your electricity bills and you’ll depend less on different public utilities. This approach will save your money and it’ll also prepare you to live in a power-deprived situation if the need arises.
As far as lighting goes, you can rely on candles and tactical flashlights for reliability. Learn more about the top tactical flashlights.
Opt For Low-Cost or Free Entertainment
Entertainment is surely a necessity but one must not go overboard with it. You can opt for a community center membership or a family YMCA instead of expensive sports and recreational clubs. Make a list of all the free services being offered in your community and try to make the most of them. Go for picnics and hiking, explore parks, visit public libraries and get habitual of reading. Adopt productive hobbies such as needlework, gardening, carving, and canning.
Make a Strict Budget for Your Shopping
Before going for Christmas or Easter shopping, you must make a strict budget and stick to it. Don’t take unnecessary cash with you. Otherwise, you’ll be tempted to buy needless items. Also, never shop on credit cards.
Move to Smaller Cities
This can be really tough or impossible for many people as they simply can’t quit their jobs or studies, but it’s still recommended to move to smaller cities at some point in your life. If an economic crisis arises, the rate of riots and violence will be much higher in big cities as compared to smaller ones. People who live simple lives in small cities are least affected by economic turndowns.
Start Storing Food
The global reserves for food are hitting their lowest levels in recent times. As the global warming intensifies and the economy gets badly affected, the prices of even basic food items will shoot up to unimaginable rates. Hence, start storing food while you can easily afford it. Buy some extra food on each visit to the grocery shop and save it for future use.
Store Important Medicines and Other Medical Supplies
An economic collapse can deprive you of your most essential needs like medicines and other medical aides like bandages and first-aid items. So keep a stock of medicines which you regularly use and prepare a first-aid box which can be used in times of crisis.