An economic collapse can happen at any time, although most of us will be able to see the writing on the wall from a mile away. Only a small percentage of the same people are prepared for an actual economic collapse. The sad truth is that the vast majority of people would last a little more than a month on what they have stored up in their homes.
You can prepare for an economic collapse by making good financial decisions that will benefit you in the long run. If you have some kind of debt then your main goal should be to pay off the debt, as during an economic collapse you will definitely struggle to pay it off. In addition to this, it is a good idea to have some cash at hand, as cash will give you at least some control during an economic collapse.
If you are serious about preparing for an economic collapse then you should have at least a bug out bag, my personal recommendation is to get one that already includes a lot of the items which I highly recommend you to have for an economic collapse Click here to check it out on Amazon.com
Most of us are so used to running out to the supermarket for whatever we need that we never even stop to consider, what would happen if suddenly we are not able to do that. The US economy is starting to stumble about like a drunken frat boy when the economic collapse occurs it will happen quickly and no one will be able to predict it as the signs of imminent collapse are difficult to see.
How would you survive if suddenly you can not rely on the huge international corporate giants to feed, clothe, and supply you and your family? Unless you are living in a cave or you are a complete and total mindless follower of the establishment media you should be able to see very clearly that our society is more vulnerable now than ever.
An unprecedented number of large earthquakes around the world and volcanoes all over the world are awakening. You could just take a look at what happened to Haiti and Iceland to see how devastating a natural disaster can be. Not only that but we have a world that is run by lunatics in positions of power and if one of them decides to set off a nuclear, chemical, or biological weapon in a major city it could paralyze an entire region.
War can erupt in the Middle East at literally any moment and if it does the price of oil would double or triple. There is a possibility that much of the entire world could be drawn into this conflict. Scientists tell us that a massive high altitude EMP blast could send a large portion of the united states back to the stone age in an instant. In addition, there is a constant threat that the outbreak of a major viral pandemic such as what happened in the 1918 Spanish Flu could kill millions of people around the globe and paralyze the economies of the world.
The US economy nearly collapsed on September 17, 2008, that is the day when panicked investors withdrew a record 140 billion dollars from money market accounts. That is where businesses keep their money to fund day to day operations. If the withdrawals would have gone on for even a week the entire economy would have halted. If the US economy collapses you will not have access to credit, banks will close which means high demand and low supply.
If the collapse affects local governments and utilities then water and electricity will no longer be available. As people panic, self-defense becomes more important and when that happens things are going to get desperate for many people. Desperate people are known to do desperate things, with higher crime rates this includes street gangs and those who are already self-employed as career criminals.
With the police spread thin and short-handed street gangs and career criminals are about to have a hay day taking whatever they want from whoever they can. All it would take for the entire US to resemble New Orleans after Hurricane Katrina would be a major war, a terror attack, a deadly pandemic, or a massive natural disaster to strike at just the right time to push the teetering US economy over the edge. If you want to know what items you should buy before a recession then check out my recent article What to buy before a recession ( Top 14 Items ).
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Have some cash in an economic collapse
Keep some cash at home, while it is not vise keeping all of your money at home you do want to have some cash at hand. If there is an extended bank holiday or if a gigantic burst in the sun causes the ATM machines to go down you want to be able to have enough cash to be able to buy things that your family needs. One way to keep cash safe at home is by storing it in a secret hiding place in your home.
Generally speaking, you should have smaller bills, in case of a massive economic collapse where cash will be in short supply you will have a hard time getting change back. Go with smaller bills, just enough to get through for a couple of days. Some economic collapses can happen due to natural causes, such as in a pole shift, for more information check out my recent article Pole shift effects on humans ( Top 16 Effects ).
Get out of debt before the economy collapses
A lot of people seem to assume that the economic collapse would wipe out all debts but that will probably not be the case. In fact, if you are in a great amount of debt you will be very vulnerable if the economy collapses and you are not able to find a job, just ask the people who were overextended and lost their jobs during the last recession so please get out of debt. Many debt collectors are becoming increasingly ruthless in many areas of the country there are now putting debtors into prison and you do not want to be a slave to debt when the next wave of the economic collapse strikes.
Getting out of debt is far easier said than done, although some careful planning and not spending over your monthly income are the first steps to getting out of debt. No matter how much debt you are in, never ever trade one debt for another, this is a slippery slope and sooner or later you will lose everything.
Invest in gold and silver before the economy collapses
In the long term, the US dollar is going to lose a tremendous amount of value and inflation is going to absolutely skyrocket. This is the main reason why so many preppers invest very heavily in gold, silver, and other precious metals. All over the world, the central banks of the world are recklessly printing money and everyone knows that is going to end very badly. In fact, there is already a push in more than a dozen US states to allow gold and silver coins to be used as legal tender.
Someday you will be glad that you invested in gold and silver now while the prices are fairly stable and low in comparison to a highly inflated fiat currency would make them cost in the future. Now I am not saying that you need to buy gold or silver bullions, instead, get a couple of coins here and there, just make sure that these coins are in your budget. If you want to know how much silver you should have then check out my recent article How much silver should a prepper have ( 222 OZ ).
In case of an economic collapse try to relocate to a cheaper area
Move away from the big cities if possible, for many people this is simply not possible as many Americans are still completely and totally dependent on their jobs but if you are able now is a good time to move away from the big cities. Where the next major economic downturn strikes there will be rioting, looting, and an increase in crime in the major cities. If you are able to move to a more rural area you will probably be in better shape.
The cost of living in most big cities is massive, most people spend the majority of their monthly income on paying their rent and their utilities. Some people have no other choice than to live in big cities, while others simply love the big city life, even if that means that they have to live from one paycheck to another. No matter in what industry you work in, you should look for a place that has a lower cost of living and which will allow you to save up some money, for the rainy days, like an economic collapse.
Have a passive income source to be prepared for an economic collapse
For a lot of people, a passive income source is something that they never knew was possible. The truth is that when it comes to making money is that you are the biggest obstacle. The average person works around 8 hours per day, and they get paid for those 8 hours. But there are some investments and passive income sources which will allow you to make money even if you are not actively there.
A good passive income source could be something as simple as a blog, I mean just look at my blog, I am not here yet you are here reading my article which I have written some time ago. Other good passive income sources can be investments, but you should be extremely careful in what you invest your hard-earned money.
Diversify your income before an economic collapse
If you are relying on just one source of income then you are putting yourself at a massive risk if an economic collapse happens. The problem is that most people think that it is ok to have just one income stream, it isn’t as sooner or later you will be in a lot of pain if you rely on only one revenue stream. Back in the day, everybody had a normal 9-5 job, and the vast majority of people were also working as handymen, which supplemented their income.
Now I am not saying that you need to start and become a handyman, far from it, instead, you should learn a new skill which you can monetize with the sweat of your labor. If you are more technologically inclined than you could also diversify your income by making a couple of websites or even apps.
Live frugally during an economic collapse
The frugal living community is getting bigger every year, and you can see why. Most people spend most of their monthly income, not because they have to but just because they want to have new experiences. I am not saying that you should be harsh on yourself, after all, it is your money and you have worked for it. Instead what I am suggesting is to buy some things in bulk or at sales, especially items which have a long shelf life when it comes to food.
The luxury fashion industry is massive, shoes and belts selling like hot cakes for hundreds if not thousands of dollars. The problem is that these $700 Gucci belts are not bought by multi-millionaires, instead, they are bought by the average person with a medium-income who wants to look rich. How many multi-billionaires have you seen with designer clothes and shoes, with the exception of actors who are paid to wear some of this stuff none of the multi-billionaires are wearing the top of the line designer clothes, just look at Elon Musk and Jeff Bezos.
Stockpile food before the economic collapse
A bug out bag or bug out vehicle should have 72 hours of food as food is going to instantly become one of the most valuable commodities in exitance in the events of an economic collapse. If you do not have food you are not going to survive, most American families could not last much longer than a month on what they have in their house right now. If disaster struck right now how long could you survive on what you have, the truth is that we all need to start storing up food.
If you and your family run out of food then you will suddenly find yourselves competing with the hoards of hungry people who are looting the stores and roaming the streets looking for something to eat. You can also grow your own food but that is going to take some time, so you need to have enough food stored up until the food that you have planted has time to grow. When the economy totally collapses the remaining seeds will disappear very quickly so if you are planning to use seeds at your bug out location now is the time to buy them.
There are a couple of foods that you can virtually stockpile forever, such as corn, rice, beans, and so on. Just keep in mind that you need to store them accordingly in order for them not to go bad, so make sure that you have both space and you also know how to properly store food in bulk.
Grow your own food to be prepared for an economic collapse
Although this is not viable for everybody but growing your own food can be extremely useful if there is an economic collapse. If you have a garden or a small plot of land then you could use that to grow your own food. Now you do not have to go all-in and try to grow every type of crop, stick with the basics, and expand from there. One of the easiest plants to grow is the tomato plant, start with that and every year just add a new kind of crop.
In case of a massive economic collapse, you might find that food will be in short supply, and not because the farmers are not harvesting their crops, but because there are no buyers for the crops and oftentimes the transport of the crops will cost a lot more than what the crops are worth. Farmers burning their fields, and throwing away their milk will be just another day during an economic collapse.
Start canning food to be prepared
Not a lot of people know how to can foods, the process is fairly easy and everybody can learn it in a matter of minutes. The problem with canning is that it can take a lot of time and it is hard work. On the other hand, if you have a small vegetable garden then you should definitely start canning the vegetables. Remember that in the case of an economic collapse your main goal will be to spend as little money as possible.
Learn how to cook from scratch to save money before the economic collapse
During an economic collapse, most people will buy every type of food which they can, but as the wast majority of people do not know how to cook from scratch you will have plenty of options. Now I am not saying that you should become a master chef, instead, go with what you have and what is abundant in your area. If your area mostly produces corn then learn a couple of dishes that you can cook for as cheap as possible.
Purify water to save money
Most people can survive for a number of weeks without food but without water, you will die in just a few days. Where would you get water if the water supply suddenly stopped flowing out of your taps, is there an abundant supply of clean water near your home, and would you be able to boil water if you need to. Besides storing water and figuring out how to get water if society breaks down is another thing is to consider is water purification tablets.
The water you are able to gather during a time of crisis may not be suitable for drinking and you may find that water purification tablets come in very handy. Water filter bottles, pumps, and gravity water filters are must-haves for any prepper. If you have a large storage tank where you store your water then check out my recent article How to keep water fresh in a storage tank? ( Top 10 Ways ).
Have a first aid kit to be prepared
A first aid kit and other medical supplies are must-have items, as in a more serious crisis you may not be able to access hospitals or a doctor. In your survival supplies be absolutely certain that you have a good first aid kit and any other medical supplies that you think you may need. Antibiotics will be extremely valuable assets, as companies begin to fall there will be a limited amount of antibiotics. Small cuts and bruises could cost you a lot of money if you end up in the hospital.
In case of an economic collapse, the price for health care will most likely jump up, as the fewer people go to the hospitals the higher the prices will be, although this also depends on the local government as well.
Secure your home in case the economy collapses
During an economic collapse, a lot of people will be angry and a lot of them will go out on the streets. Although the vast majority of protests will be peaceful, it only takes a couple of looters for people to think that it is a free for all. This is a slippery slope especially if you have your own business. Securing your home should be a priority, remember you are the King or the Queen of your castle and you will have to be able to defend your property and home.
Have a renewable energy source to be prepared for an economic collapse
Solar panels are fairly cheap, and if you live in a house then you will have no problem installing them. Most local authorities also give out loans or incentives if you set up solar panels. In case of an economic collapse, the price of natural gas and electricity might go up, and some areas will not even have access to the power grid. Just keep in mind that not all areas are good for generating power with solar panels.
If you have no other alternatives then you could use a backup generator that has enough power to power your house. If you are heating your home with electricity during the wintertime then you should think of alternative sources of heating your home, especially if the power goes out for a number of days.
Have alternative heating options to be prepared
Some parts of the country have brutal winters, and during an economic collapse situation, a lot of things could happen. The last thing you want is for the heater to malfunction or not have any power. Even if the heater goes out for a couple of days it could still make a lot of damage. A couple of years ago my neighbor went to visit his daughter for a couple of days, now keep in mind that we live in Alaska and during the night a branch fell and has broken his window.
He was using a thermostat to regulate the temperature as he was not home, the heater broke down as it couldn’t keep up with the constant winter cold coming into the house and most of his indoor pipes have frozen and cracked, repairing them was extremely expensive.
Make a bug out bag in case the economy collapses and you need to bug out
This can be as simple as a hiking backpack but my favorite is a military surplus backpack as it is a tried and tested item by the US Army. If you can not carry your shelter, tent, water filter, matches, knives, clothing, etc you can not travel with them and provide the benefits which these tools have. If you and your family suddenly have to bug out what will you carry all of your survival supplies in, have a good bug out bag for everyone in your family.
If something happens in the city where you suddenly have to bug out what would you put your most important stuff in and how would you carry it all if you have to travel on foot.
Have a temporary shelter to be prepared
You can not sleep on the streets, some people will be able to get by living on the streets but the vast majority of us will need some form of shelter to survive for longer periods of time. What would you do if you and your family lost your home or suddenly are forced to leave your home, where would you go? The best thing to do is to come up with several plans, do you have relatives that you can bunk within the case of an emergency.
Prepare your family for the economic collapse
In case of an economic collapse, a lot of things can happen, and the last thing you want is for your family to panic or even worse join the looters and expose themselves to a massive risk. Gather your family around and tell them what is going on, try not to scare them but make sure that they take you seriously. The next thing that you need to do is let them know where you will start cutting the expenses, and you have to make them understand that you are doing this for the benefit of the entire family.
Avoid scams during the economic collapse
As soon as things will start to get difficult during the collapse a lot of scam artists will pop up and try to capitalize on it. Even today there are a lot of people selling snake oil, Ponzi schemes, you can see them in the motivational industry, promising all kinds of riches to the person who joins their course for just a small fee of a couple of hundred or thousand dollars. These people do not actually sell a valuable product, all they are selling is a dream, so avoid scams at all costs.
Keep your documents safe to be prepared
A person’s document can be extremely valuable, especially if they end up in the hands of some malicious person. You should be extra careful with who you hand your documents to, even if it is a copy of the original document. Identity theft is no joke, and during an economic collapse, a lot of desperate people will do anything to get by, even if that means taking a loan out on your name without you even knowing.
Have a nice hiding spot for your most valuable documents and ideally put all your documents in a fireproof bag if possible. If you want to know more information about fireproof bags then check out my recent article Do fireproof bags really work ( Or do they? ).
Have a backup plan if the economy collapses tomorrow
This is really your first step and priority, have backup plans to get to your bug out location. Always have a backup plan when prepping, if someone steals all your food supplies, if your bug out vehicle breaks down or for some reason, the bug out location is not accessible, take all these things into consideration. If you have built your house as a fortress but the crisis situation forces you to leave you should have an alternative bug out location.
Crisis situations rarely unfold just as we envision them, it is very important to be flexible and to be ready with a backup plan whenever disaster strikes, you don’t want to end up like the people in New Orleans after Hurricane Katrina, and you do not want by any means to rely on the government to take care of you if something really bad happens.
As you can see there are a couple of steps which you should make in order to prepare for an economic collapse, the problem is that most people know that they are putting themselves at risk with their spending habits, and simply panic when the economy has a downturn.