5 proven steps to prepare for economic crisis.
In my last post, I made the case for an economic crisis here in America, and pretty much the rest of the world. At the end of that post, I mentioned some good news, mixed in with all of the horrible economic numbers. One good thing is the global economy hasn’t yet, totally collapsed around our ears. This gives anybody of a mind to get prepared, a little more time to do so.
The second piece of good news is, The dollar hasn’t completely lost all of it’s value yet, and the stock market is still standing. This means that chances are good that you can still muster the resources to prepare for economic crisis. Now a quick disclaimer. I am not a economic adviser. I do not posses a degree in economics, nor do I claim to have any ability to advise on matters of Stocks, bonds, currency’s, or other paper type investments. I can only tell you what has worked well for me over the years. These are precautions that anyone can take to protect their wealth, and come out far head of the crowd during a economic crisis.
Most everyone knows the history of the Weirmar Republic(WR), Germany’s government before the Nazi’s. The WR did everything that America has been doing for the past 80 years. Once their failed policies started to become a problem they tried to print their way out of economic calamity, and caused an even more severe economic crisis. Germans had to take wheel barrow loads of currency to the market to buy bread, because the government had printed so much paper currency, that it caused hyper inflation. Germans lost their houses in huge numbers because the currency was practically worthless, and the banks didn’t want it. It was this economic crisis that in large part set the stage for the Nazi’s rise to power, and all of the tragedy that came with them.
Lets look at 5 proven ways that an individual can avoid these problems, even during a complete economic crisis.
1)Eliminate as much of your debt as possible now!
Debt will add a substantial drag on anything you do to survive a financial emergency. Bank’s can not take anything away from you, that you have completed payment on, and taken complete ownership of. If you are able to use dollars, Stocks, bonds,etc (all soon to be worthless paper anyway), and pay off your families house, car, and other debts. You can scratch several serious concerns off of the list of things to worry about during economic crisis. I put this at the top of the list of economic preps, because it is the single most positive step that I took in my life. After paying off the house, and land in the country. Everything, and I mean everything became easier, and less stressful. I have been an ordinary working boy my entire life, and never earned big annual money, and I still found ways to pay off every single debt that I had accumulated over the years. Once I was able to get all of our debt behind us, I have stayed determined to never fall into that debt trap again. Not a day goes by that banks, loan companies, credit card companies, and car dealerships, are not stuffing my mail box with their offers to reinslave me with their interest payments. I throw them in the trash without bringing them into the house. I like my independence, and I like my money more than anything they are selling. Once the debt is history, everything gets better, and completing this step makes the next steps possible.
2) Get your accumulated wealth out of paper!
As I mentioned above paper is not money. Paper is not wealth. Paper is fiat currency. It’s value is based on promises, lies, and the wishful thinking of the elitist controlling class. During any economic crisis this fact will always become apparent fast. When dollars were backed by precious metals (Gold and Silver), and for several years there after, dollars were the worlds currency. People on the entire planet would except dollars for anything that they were selling. In the 1970’s, no matter where I was, Europe, Asia, Africa, or South America. Merchants preferred dollars over their own currency. For many years the crude oil markets only traded in American dollars(petrodollars). These facts made the American dollar king, and made paper investments relatively safe. Sadly none of this is true today. Any investment that is represented by paper notes, or electronic digits on a screen, such as a computer screen, are subject to their value disappearing almost instantly. Stocks (including gold stocks), Bonds of every type, Currencies from any country on earth, and insurance investment accounts, are shakey at best now. The Republican nominee for President just went public with this statement :“Get out of the stock market”! In order to protect your wealth during economic collapse, it’s imperative to convert it from investments with little to no intrinsic value (paper investment), to physical objects of solid intrinsic value. Now this is the point where I tread with caution: There are many forms and levels of intrinsic value. From just a few cent’s a unit, to Billions of dollars a unit, and where you choose to invest your wealth is as personal as what kind of shoe’s you wear. I chose:Land, Gold, Silver, Copper, Guns, and Ammo. I have never lost a dime on any of these investments, and I have watched all of their values flux up and down in the short term, but rise steadily over the long haul. If your paper investments seem to be doing well right now, great, but don’t expect that to continue, after the economic crap hit’s the proverbial fan. At least try to diversify portions of your accumulated wealth into investments that you can touch.
3) Keep your money!
This one was very easy for me. I’ve been a saver my whole life, even as a kid. However I admit that as a young adult I did develop a case of the “keep up with the Jones”. Nice cars, and giant gas guzzling 4×4 pickup trucks were my weakness. If one of my Hunting or Fishing cronies bought a new truck, It wouldn’t be long before I had to do the same. It was stupid, and costly. Not just the cost of keeping the newest body style of my favorite truck in the driveway, but the taxes, interest, finance charges, and insurance cost, put a real strain on the saving’s plan. I finally shook myself free of this budget killer with smarter ways to acquire what I needed as apposed to what I wanted, and this helped with the get out of debt mission. No matter how much money you earn, or how much money you have now, no one is going to care how expensive your car, cloths, or watch is, during an economy crisis. It’s going to come down to the same basic need’s as any other emergency situation. Food, Shelter, Clean water, and heat in the winter time. We will still need things like Transportation, Communications, and clothes, but a 10 year old Honda will get you to work just as well as a brand new, Benz, and a less expensive phone will keep you in touch just as well as the newest Thousand dollar iPhone. If you are a slave to fashion, technology, or can’t live with the thought of your neighbors having a newer more expensive sled than you, then you probably are not going to survive economic collapse. On the other hand if you found this article, you are probably a prepper anyway, and already understand the importance of living a more frugal, and efficient lifestyle. Once you have cut the chains of debt, and started to live a smarter, less “super sized” lifestyle, the wealth you are able to accumulate will almost explode.
4)Out of sight, out of mind!
Once the first three steps have been accomplished, or at least well underway, you should start to see a substantial increase in accumulated wealth. That’s how it worked out for me anyway. With no monthly bills, except for utilities, food, and a few other small purchases here and there, my disposable in come increased, and so did what I was able to keep. After losing my shirt in 1999 when the “Dotcom” bubble busted, I had learned the lesson about paper promise, investments, and started buying precious metals, and other solid forms of intrinsic value, with my “disposable” income. After a few years it became apparent, that I was going to need a way, and several places to secure what I had accumulated. You will need to make arrangements to protect, and hide what you save. Do not keep all of your egg’s in a single basket. To do so only sets you up to lose it all at one time, and do not keep it in a deposit box at the bank. When it hit’s the fan and everything collapses, the banks will put a sign on their door saying…”Closed for what ever, sorry for any inconvenience”, and that will be the end of your saving’s, weather it’s in paper, fake digits, or solid gold. The people of Greece, Puerto Rico,and Venezuela have found this out the hard way in recent years, and many Thousands of people through out history! Here again I must tread lightly, as to not give up anything I don’t want to lose in the future. Use your imagination here, just as you would in any other area’s of emergency prepping. There are literally Thousands of ways to hide things, and keep them safe. Try to keep them away from places, associated with your name. Like storage facilities, rented in your name, or other real estate that you own, Unless they are well hidden. A word of caution here: Digging a hole in the ground and burying your stuff is not always a great idea. I have been a relic hunting enthusiast for much of my life, and my “Nautilus DMC2B” can ring a silver dime 2 ft in the ground, as well Guns and ammo do not do well underground, except in the driest of climates. I was once hunting for Civil War bullets in woods near my home, and dug a very old mason jar full of silver coins, and some very nice pieces of gold and silver jewelry. In many cases it is possible to hide objects in plain view, and right out in front of peoples faces, without fear of anybody finding it. Like I said use your imagination, and study the subject. There are some fantastic resources on the internet concerning hiding every thing from small coins to living quarters.
5)Mind set for avoiding, or surviving economic crisis
I had trouble naming this step, as it incorporates a mind set, and several different methods for success. In short, the fifth step is to increase your income, or entrepreneur up! For the time being American dollars still hold a certain amount of value, even if it is value based on mostly hocus pocus. I try not to accumulate too many dollars at any given time, by converting them into solid objects with proven, intrinsic value, of course I have already explained why above. But, dollars are still the way we get paid, weather you are already a business owner, punch a time clock, or you are on welfare. The trick is to keep a few dollars around to take advantage of any deals that may present themselves, and to keep your attention focused on spotting deals that may be of any economic value to your bottom line. In other words, make your accumulated wealth work for you now, and during any economic crisis. The old entrepreneurs creed is to “Buy Low, Sell High”, and keep the profit. This is how all business is based, and without this basic understanding they are doomed to fail. Now what do you buy, and sell? I recommend that people stick with objects and services that they know, and are passionate about. In my case, anything that keeps me out doors in the wilderness, or anything that represents American history are what I love, so these are the area’s that I have found most of the money makers. #2, practice the barter system (horse trading). This is a time tested way to get what you need for things you have too much of, and save lots of money in the process.#3, Invest in knowledge. Learn skills that are valuable to people everyday. Skills that will remain valuable after economic crisis strikes, and use these skills to trade for goods and services that you do not already have.#4 Perform more services for yourself and pocket the savings. Auto mechanic shops, and home improvement outfits are expensive. Learn to maintain your own vehicles, and house. You can save 20 bucks by doing a simple oil change on your car, and hundreds of dollars by painting your own house. These simple steps add up over time, and make your chances of surviving economic crisis, much more likely.
Well there it is! 5 simple steps that changed my economic fortunes in a profound and positive way. I no longer worry about what the economy is going to do anymore. When I was forcefully retired early, I didn’t panic! As a matter of fact, I never broke stride. I kept making a living doing all of the things that I love to do anyway. Practicing a prepper type life style, and the effect these 5 steps, has made it possible for me to continue on unemployed…without fear.
I genuinely hope that you will incorporate these principles into your life, and that they will also produce positive change for you.