4 Ways to Prepare for Economic Collapse

Economic collapse. What does it mean? Will it happen? Can we stop it? These are tough questions. There is really good evidence showing that we are headed towards a global economic catastrophe. On the other hand, we may find a way to pull ourselves out of our huge global debt. No matter what the answers are, you need to be prepared. Why? Because an economic crash could be personal as well as global. The good news? You can prepare for both global and personal economic failure at the same time. That's because there are basic financial principles that everyone should live by. Here are 4 simple steps to be better prepared financially. This isn't a comprehensive list, but it's a good place to start.

1. Be debt free- Don't spend more than you make. If you do have to go into debt to buy a home or get through college, than pay it off as soon as you can. Make a habit of never carrying a balance on your credit card. Instead of buying a new car look for a used one. Being debt free relaxes a lot of your time and worries. If the market crashes then you'll be glad of having done the next step.

2. Have cash on hand- Whether you're fired or the world enters financial collapse, having cash helps you survive. Use it to buy groceries and pay the bills. As far as how much you should save, most people recommend enough cash (or other easily liquidated asset) to survive on for 3-6 months. If the global economy dives then you'll want even more, though, so it's up to each person how much they save.

3. Create an adequate food storage- The key to this one is taking it little by little. If you don't have a lot of money to buy a bunch of food storage all at once, then set aside some money each month to buy a little. To start, buy foods that your family normally eats. Once you have 3 months of that built up, start a long term storage plan. Focus on long-lasting items, such as rice, beans, wheat, oats, and pasta. Don't forget, you also need clean water!

4. Learn how to be self-sufficient- Learn to plant a garden, harvest it, and store what you harvest by canning it. Those are the most important and basic things to do to become self-sufficent in a failed economy. Once you have those down, then you can consider how to survive without electricity, how to build a home with raw materials, etc.  You could also consider taking courses in martial arts or gun handling. Self-defense in a global crash is a very real necessity. In a personal financial crisis knowing self-defense techniques can make you confident and help you get back out there to find a new job. In addition, consider trying to find ways to have a secondary income. Learn valuable skills such as carpentry that you could use to get hired and earn extra money. My scoutmaster had a saying about how to be prepared: "The more you know the less you need." So true.

Although these are very simple steps, sometimes they can be complicated and difficult to accomplish. Don't try to do them all at once. Little by little you'll be ready for anything. Share this blog post on social media so your friends can see how simple it is to be prepared for hard economic times!