How should people prepare for the difficult years that are coming?
Once people really examine the facts, it is not too hard
to convince them that an economic collapse is coming. But once they accept that
reality, most of them want to know what they can do to prepare themselves and
their families for the hard times that are ahead.
Well, the truth is that it
does not have to be complicated. Many of the things discussed throughout this
article are things that most of us should be doing anyway. Now is not the time
to be splurging on luxuries or expensive vacations. Now is not the time to be
going into large amounts of debt. Instead, we all need to get back to the basics
and we all need to do what we can to become more independent of the system....
Just like anything else, an economic collapse takes time. I like to describe
what is happening using an analogy from the beach. When you build a mighty sand
castle, it is not totally destroyed by the first wave that comes along, right?
Well, it is the same thing with the U.S. economy. It was the greatest economic
machine that the world has ever seen, and it is most definitely in decline. But
there are stages to that decline.
The "wave" that came along in 2008 did a huge amount of damage. Our economy has
not recovered from that.
Now another wave is coming. But that will not be the end. There will be other
waves after that.
Eventually, this thing is coming all the way down.
Someday America will be such a horror show that it will be hard to believe
that it is the same place that many of us grew up in. But in the short-term, we are going to be facing a major league recession and
millions of Americans will lose their jobs. It won't be the end of the world,
but for some people it may feel like it.
So when you are talking about "how to prepare", the truth is that it depends on
what kind of time frame you are talking about. In the long-term, a lot of the things that even the hardcore survivalists are
doing will not be nearly enough. In the short-term, there are things that all of us can do to weather the coming
storm....
Get Out Of Debt
The global financial system is headed for a massive crisis. Just like in 2008, a
lot of people are going to lose their jobs and a lot of people are going to lose
their homes. In such an environment, it makes sense to travel as "lightly" as possible. That means getting rid of debt.
Some forms of debt are worse than others. Mortgage debt is not that bad. We all
need somewhere to live, and not all of us can run out and immediately pay off
our mortgages.
But there are other forms of debt that are absolutely toxic. A good example of
this is credit card debt. There are very few things that are as good at bleeding
your finances as credit card debt is. For example, according to the credit card
repayment calculator, if you have a $6000 balance on a credit card with a 20
percent interest rate and only pay the minimum payment each time, it will take
you 54 years to pay off that credit card.
During those 54 years you will pay $26,168 in interest rate charges on that
credit card balance in addition to the $6000 in principal that you are required
to pay back. That is before any fees or penalties are even calculated.
But a lot of Americans still have not learned to stay away from credit card
debt. In fact, one out of every seven Americans has at least 10 credit cards. Ouch.
The truth is that in future years there is a good chance that you may be facing
a situation where you are not making as much income, so you want to try to start
reducing your expenses right now. Getting out of debt will help you to do this.
Save Money
A shockingly high number of American families are operating without any kind of
financial cushion whatsoever....
- According to a Harris Interactive survey taken in 2010, 77 percent of all
Americans are living paycheck to paycheck.
- According to one recent survey, one out of every three Americans would not be
able to make a mortgage or rent payment next month if they suddenly lost their
current job.
This is one reason why so many Americans have lost their homes and why so many
Americans have fallen below the poverty level in recent years. They simply had
no cushion.
Last year, 2.6 million more Americans dropped into poverty. That was the largest
increase that we have seen since the U.S. government began keeping statistics on
this back in 1959.
Don't let this happen to you. At a minimum, everyone out there should
have a
cushion that will cover at least 6 months worth of expenses. Preferably, you
should have a cushion that will last you at least a year.
Yes, I know that is a tall order. But you would be amazed at how much money the
average American family wastes in a typical month. Almost all of us have areas
where we can cut back. Trust me, in the middle of a major recession you will be really glad that you
are sitting on a pile of savings.
Get Independent Of The System
What would you do if you lost your job tomorrow? Would you have any other income? How long would it be before you lost your home? Those are very important questions.
The truth is that the system is failing and so we all need to work hard to
become more independent of the system. So what does that mean?
Well, instead of relying on someone else to employ you indefinitely, you can
start up a business in your spare time. Yes, it will cut into your television
time, but if someday you lose your job you will be extremely happy that you
still have some income coming in.
Another way of becoming more independent is to start a garden. Yes, you can run down the street and buy giant piles of cheap food right now,
but that will not be the case forever.
Store Food And Focus On The Essentials
I might get into a little trouble for saying this, but the truth is that there
is not going to be a major famine in America in 2012. However, that does not mean that you should not be storing food and other
essentials.
In the old days, our grandparents always saved up food. It was just a natural
thing for them to do. This was especially the case if they lived through the
Great Depression. When hard times come, you will be glad that you have food stored up. Plus, food
is never going to be cheaper than it is today. Having food stored up is a great
hedge against the rising food prices that we will see in the future.
No, we are not going to see hyperinflation by the end of the year like many of
the sensationalists are warning. But someday you will be really glad that you
stored up food for yourself and your family.
We live in a world that is becoming more unstable with each passing month. You
never know when the next natural disaster, pandemic, war or national emergency
will strike. It only makes sense to store food and other basic essentials that you will need
in the future.
In a previous article entitled "20 Things You Will Need To Survive When The
Economy Collapses And The Next Great Depression Begins", I listed 20 of the
things that you would need in the event of a major disaster, a national
emergency or a total economic collapse. These are things that you are going to
want to make sure that you have ready right now, because after the crisis begins
it may be too late to prepare....
#1) Storable Food
#2) Clean Water
#3) Shelter
#4) Warm Clothing
#5) An Axe
#6) Lighters Or Matches
#7) Hiking Boots Or Comfortable Shoes
#8) A Flashlight And/Or Lantern
#9) A Radio
#10) Communication Equipment
#11) A Swiss Army Knife
#12) Personal Hygiene Items
#13) A First Aid Kit And Other Medical Supplies
#14) Extra Gasoline (But Be Very Careful How You Store It)
#15) A Sewing Kit
#16) Self-Defense Equipment
#17) A Compass
#18) A Hiking Backpack
#19) A Community
#20) A Backup Plan
Our readers suggested the following additional items....
-
Extra Batteries
-
Medicine
-
A Camp Stove
-
Propane
-
Heirloom Seeds
-
Tools
-
An LED Headlamp
|
-
Calcium Hypochlorite
-
Ziploc Bags
-
Maps
-
Binoculars
-
Sleeping Bags
-
Clorox
-
Candles
|
"Be anxious for
nothing,
but in everything by prayer and supplication,
with
thanksgiving, let your requests be made known to God;
and
the peace of God, which surpasses all understanding,
will guard
your hearts and minds through Christ Jesus."
Philippians 4:6-7
|
Here are some of our previous articles by
Michael:
34 Shocking Facts
About U.S. Debt That Should Set America On Fire With Anger
22 signs that the
thin Veneer Of Civilization that we all take for granted is starting to
disappear
65 Ways That
Everything That You Think That You Own Is Being Systematically Taken Away
From You
12 Facts About Money
And Congress So Outrageous That It Is Hard To Believe They Are True
Barack Obama’s White House
Rural Council: Central Economic Planning For America’s Heartland
Free
Trade Or Fair Trade?
| Unelected, Unaccountable,
Unrepentant:The Federal Reserve
Source article:
http://theeconomiccollapseblog.com/archives/how-to-prepare-for-the-difficult-years-ahead/how-to-prepare-for-the-difficult-years-ahead
Posted with permission
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