How to survive an economic collapse

The pandemic and the reaction of governments shutting down their economies have created a ripple effect of supply shortages that will continue to get worse. Shutting down manufacturing and the supply chain combined with massive printing of money to pay people not to work has crippled our economy like never before.

Businesses are desperate to hire new workers but are unable to find anyone due to extended unemployment benefits that are often greater than the salaries paid. The few employees that remain are overwhelmed with trying to keep up with the workload. Many employees are quitting because of the added stress and reduced time off as companies try to cope.

Economic pressure is reaching a breaking point and there is no relief in sight. It is already starting to get harder to find commonly used items at many major retail stores. Some stores have began rationing some items to customers in order to stop people from panic buying.

There are things that you need to do right now to prepare for the economic downturn we are about to face. Prepare yourself and your family now to be able to weather the storm that we could be facing.

Pay off debt

Most people have more debt than they should. If you have debt you need to get it paid off as soon as you can. The only houses that the bank forecloses on are the ones that have mortgages on them. The only cars that get repossessed are those with loans on them.

Dave Ramsey is my favorite financial advisor because his approach to paying off debt has worked for thousands of people. I would advise anyone who is serious about getting out of debt to read his books and follow his approach.

People today have become too addicted to plastic money. We walk into a store, see something we want and swipe the credit card to pay for it without truly looking into the consequences of how financially devastating it can be.

Years ago I knew someone who had a paid for house but was addicted to credit cards. This person took out a loan on the house to pay off the credit cards but never stopped using them. A couple years after getting the mortgage the cards were all maxed out again and she ended up losing her house.

Having a roof over your head is a very important part of surviving any kind of economic downturn. If you owe a mortgage on your home you can easily be kicked out of it if you don’t pay the bill.

Renters have another issue to worry about. They live in a home that someone else owns. There are a lot of people who say that a landlord cannot simply kick someone out on the streets for no reason. However, no one really knows what can happen during a collapse.

When I was a kid, we had to move from a house we were renting because the owner wanted to give it to their grandchild. We could have certainly fought it and stayed in the house but that would have been expensive and we wouldn’t have really gained anything.

Owning your own home, or at least some property you can put something on is a great advantage during devastating economic times. If you owe on it you don’t really own it. If you can pay off some of your debts by selling things you don’t really need then get them sold.

Build an emergency fund and savings account

Another important financial aspect of surviving an economic collapse is having some type of emergency fund that can help cover expenses in the event you lose your income. Everyone should have three to six months worth of expenses saved up in their emergency fund.

It is very possible that you could simply lose your job and the economic collapse could just be you not getting a paycheck for a while until you find another place to work. A national economic collapse would certainly make things worse because there might not be another job available.

An emergency fund is a way to buy time in the event something desperate happens. Six months of mortgage or rent payments in your fund will give you six months of a roof over your head. If you don’t have a place to live, a lot of other things become irrelevant.

It is a good idea to have a supply of cash you can access. I’ve read countless books on various national collapses and one common theme that happens with every nation that their cash supply dries up. Banks shut down ATM machines completely or will limit the daily amount each citizen can withdraw.

Most money today does not exist in physical form. It is mostly money on a computer screen with only a small percentage in actual physical cash. Paying with a debit or credit card is not always an option and your purchases can easily be controlled by whoever controls your card.

Stock up on commonly used items before an economic collapse hits

The first thing you need to do is develop a list of the things you regularly use and how often you use them. From that list you can prioritize the items you normally buy. The necessities should always be higher priority than the creature comfort items but you shouldn’t simply ignore all of the comfort items.

Some creature comfort items should include soap, toothpaste and other things that you may not see as necessities in a grid down situation. A big part of surviving a disaster is the emotional and psychological side of things. Taking a bath and cleaning your self up a bit can have significant emotional benefits and encourage you in a time of struggle.

The time to get the things you need are when they are still available. During the pandemic we quickly watched as stores were cleared of everything, particularly toilet paper for some strange reason. People rushed to buy what they could without having a real plan on what they were getting.

We witnessed a supply shortage and are already experiencing another one on many items. Every nation that has suffered an economic collapse has seen similar supply shortages and dramatic price increases. As of the time I’m writing this some large retailers are already starting to limit the number of items a single customer can purchase.

Instead of running to the store and buying everything on the shelf, you need to develop a plan for the things you get. If you rush to the store without a plan you will end up spending your money unnecessarily on things you may or may not need.

Practice living without some modern conveniences

We live in a world of conveniences that generations past could only imagine. I remember how things were before everyone had a cellphone in their pocket. If your car broke down on the side of the road in the middle of nowhere, you had to walk to get help. Today it’s easy to call someone to come help you.

Another convenience we have is electricity and all things related to it. When it gets too dark, we simply turn on a light. If it is hot, we turn on the air conditioner. It is easy to take these things for granted until they are no longer available for us to use.

The only time most people are without electricity is when the power goes out for a period of time. Everyone has experienced a power outage at some point in their life. Imagine that the power outage was much longer than a couple hours or a few days. Would you have the tools and the skills to cook your food or to get fresh water?

Shutting off the modern conveniences from time to time can help you gain a greater understanding of how to live without them. It will also show you what kind of skills you need to develop and the tools necessary to survive.

Learn to raise a garden

A garden can help supplement your food supply by providing you with fresh fruits and vegetables. A breakdown in the supply chain may cause limited options at the grocery store or even close the store completely.

The ability to produce your own food is one subject I’ve written and talked about many times. When the grocery store is closed due to a lack of supplies what will you eat? There is a lot more to growing a garden than most people think. It is much more than simply planting some seeds and waiting for them to grow.

You must learn to keep the garden free of weeds and pests. Wild animals will enjoy eating the fruits of your labor if given the opportunity.

Preserving the food you raise is a very important part of raising a garden. A garden that can provide for your family cannot all be eaten at once. You will need to preserve enough of the food from your garden to last through the winter until the next gardening season.

Start learning to garden now by planting a few things you like to eat. It is important to make the mistakes now while supplies are available than it is to make mistakes when your life depends on it.

Get your family involved

I cannot stress enough how important it is to get your family involved in learning how to survive an economic collapse. If you have kids, make the chores a game for them. They will learn valuable skills and gain a better understanding of how to survive.

Another reason you need to get your family involved is because you cannot do it yourself. You will need help and everyone will need to make some sacrifices in order to meet your goals. The more skills you have the greater chance you will have surviving any disaster.

Involving your family is a great way to spend time with them and build the connections that often get overlooked in today’s busy world. You won’t regret it. Working together to make the preparations and learning the skills to survive an economic collapse will help you become even closer.