10 Critical Ways To Prepare Your Family Financially For The Economic Collapse
We’ve all heard about the coming economic collapse. But what have you done to prepare you and your family for it?
When most folks talk about prepping, they think of storing food, water and other staples. However, prepping your finances is key to long term survival. In the below, we cover the 10 Ways To Prepare Your Family Financially For The Economic Collapse.
1) Cash On Hand
Obviously, you’ll need to have cash on hand when things get tough as access to that cash will become very difficult. This just doesn’t mean keeping hundred dollar bills in the house. You don’t know what denominations will necessary and practical when hyperinflation hits. Having fives, tens, and twenties on hand will certainly be key. Remember, when the bank runs begin, people will not have change for what you can sell.
2) Items For Barter
Having things to of value to barter with will also be a must have. It’s not only items like food, water and gasoline were talking about here, but items of use like bars of soap, bandages and batteries. These items will become valuable when the SHTF. If you have access to one in particular item that you can get your hands on in bulk, it would be wise to stock up on that item for bartering.
When the SHTF, it will be culture shock for a lot of people. Folks used to having everything instantly. Things will become so difficult some people will not be able to adjust. Don’t be one of those people.
3) Live on Less
Prepare your family by starting to live on less now. Start with small things by cutting out extra items like going out to eat, ice cream runs, and other trivial things. This is not to say don’t enjoy yourself, but rather space those enjoyments out. Remember, when things get tough these items will be hard to come by.
If your family is used to infrequent luxury items, when they completely disappear, it won’t be such a shock to them. Psychology of your group will be important with each passing day.
Related to the theme of keeping cash on hand, coins will be valuable as well. Remember, there is intrinsic value in coins. Some are made of nickel, copper, or silver. These precious metals will increase in value as things get tough. If you’re able to diversify to silver and gold coins now, that’s a wise choice as well. Remember, a quarter is worth $0.25 today, but a quarter made before 1964 is actually worth about $7. The melt value alone of some of these coins are actually extremely valuable.
5) Income Generation
In the day and age of direct deposit, folks rely on the fact that their money is put directly into their bank accounts. When the SHTF, you may not have a job anymore. Therefore, you’ll need to think now about how you’ll generate income for your family. Whether you have a particular skill that is valuable or you’re able to generate some type of passive income you can rely on. Start planning now for that.
Here are couple of ideas to consider.
- Offer to provide water gathering services
- Passive income from ads on websites (remember we may not see a global recession) – check out Bluehost for domain hosting (on the right —->)
- Selling of supplies you have in bulk or access to
- Services you can provide (medical, sewing, etc.)
6) Foreign Investments
If you’re fortunate enough to have investments, it would be wise to have them with multiple institutions. Diversifying your investments will protect you in the event that one of those institutions go under. In fact, a foreign type investment house would be wise. Canada, Australia, and Switzerland are three very good options at this point. However, be sure that you can get access to those funds in the event of a crisis in those countries.
The bonus is you protect yourself against a falling dollar as these investments are usually held in the same currency as the country they reside.
7) Back Run Readiness
When the bank runs begin, people will be scrambling to get their money out. Make sure you use every available resource possible to get cash in your hands. The obvious choices are ATM cards and credit cards. However, a home equity line of credit can be very valuable at this time. Utilize it if you can. Be sure to you to utilize your routes to banks accordingly. Send different members of your group to different locations to withdraw that money. Remember, everyone will have the same idea when it happens.
Plan on being able to protect yourself as some folks will become more than desperate. Imagine yourself being the person that just got the last $200 from the ATM machine. Protect yourself at all times.
8) Debt Decisions
There are two schools of thought when it comes to debt. Many folks say try to eliminate as much of your debt as possible before the SHTF. However, for many people this is just not possible. Paying off a large mortgage may be difficult to do on short notice. It’s true the banks will be coming for their money regardless of your income situation. However, banks will often go two years without a payment before they begin foreclosure procedures. I feel you should try to hang onto as much cash as you can to have some purchasing power (for essentials). Remember when hyperinflation occurs, paying off your mortgage will become a lot easier as dollars will be worth less than they are today. Therefore a $1500 a month mortgage today will be easier to pay once hyperinflation occurs.
9) Foreign Currencies
If the US dollar takes a tumble the way many are predicting, having foreign currencies is a great way to protect your wealth. Canadian dollars, Aussie dollars, and Swiss francs are among the best as they have been the most stable over the years.
To illustrate this, today one dollar will buy you roughly one Canadian dollar. If the US dollar falls apart, one Canadian dollar could buy up to 15 or 20 US dollars. Don’t have all your money in the US dollar. Diversify your risk.
10) Gold and Silver
Gold is king. You cannot have financial stability without gold and silver. These precious metals have always maintained their value and in times of economic crisis have increased. Rumors of the US going back to the gold standard are always out there. If this occurs the value of gold will skyrocket.
Prepping is often thought about in terms of preparing supplies to survive. However, things can be made a bit easier with preparing your group financially. In fact, some folks are better off financially and can truly use it to their advantage if they prepare correctly.
Remember, protecting wealth and having items of value is just as important as having food and water. In fact, having the former can get you the latter during an economic collapse.
Let us know what you think in the comments below.