Things You Can Do During A Financial Crisis
Open a newspaper and you can’t help but find yet another story about job losses, rising interest rates, Eurozone budget crises, or grim news from the US Federal Reserve.
Since the housing bubble crashed in 2008, the economy has been a downward track and while it may appear to be propped up right now, it is only a matter of time before exorbitant debt, reckless spending and international pressures result in a full blown global financial crisis.
When this happens, you want to be prepared for what happens next. You want to know that your family is safe, your wealth is protected and that you know exactly what to do next.
This is not a doomsday scenario. Similar crashes have occurred numerous times throughout history – major currencies completely devalued in a matter of months due to excessive debt and a government intent on spending its way out of trouble.
The number of things this can affect is at times terrifying. The prices of commodities, the ability of the government to protect its citizens, the status of wars in overseas countries. All can and likely will be upset by a major economic collapse. So, you need to be prepared.
Create a Plan and Stick to It
One of the most effective things you can do to prepare for such an economic crisis is to create a plan now and stick to it no matter what happens.
It is hard to make substantial lifestyle changes to prepare for something that has not yet happened and that not everyone believes will happen.
However, the growing evidence that there will be a financial crisis is overwhelming so it’s important that you are prepared for anything and that you stick to the plan you create so that nothing wavers when the crisis does occur.
For this, there are three things you should do:
1. Set Aside Emergency Cash
While cash will lose a lot of its value during a financial meltdown, it will still hold some and you will need it if you want to buy basic necessities in the days immediately following the crash.
Because the next step in a financial crisis is often the banks shutting their doors or embargoes being placed on withdrawals by the government, you may not be able to access your cash for some time, so hold some in reserve in your home for such instances. You can also convert some of your paper holdings into gold or silver, though I recommend you have a safe storage plan for any physical wealth you plan on keeping in your home.
2. Stock Up on Non-Perishable Foods
A number of things will happen after a crisis. First, there is the risk that it will be unsafe to leave your home.
While this may seem extreme, consider that local and federal governments may be hard pressed to pay for police and other basic protections.
This is already happening in the United States where local and state governments are legally required to balance their budgets and as a result, are cutting basic services to do so. It is only a matter of time before this becomes systemic in areas throughout first world countries.
Another issue you may find is that the cost of food will skyrocket. Commodities will not lose value, but the money used to buy them will and people will start to stockpile against the crash. By stockpiling food for your family, you can ensure you have what you need for the coming crash.
3. Set a Clear Plan for Your Family
If something happens, make sure everyone in your family knows their role.
Where should they go? Who should they get? What should they tell other people about your own preparations?
Make sure that if there are other family members you want to protect, you inform them of your preparations as well.
Parents, children, or brothers and sisters who do not prepare will want to know that you are ready for anything.
Be there for each other and support one another as best as you can during a crisis – in many cases this is the difference that makes everything okay.
Whatever your perception of the future and the risk currently faced by our economy, the best course of action is preparation. So, start preparing and be ready for anything because while we don’t know how a global crisis will unfold, we do know it is coming.