It’s interesting to note how some people view the current economic crisis as something that’s going to clear up in a few months. Is it just me, or are these people simply not paying attention? I suppose that they could be choosing to ignore it, as that’s what many people do when faced with something they think is too overwhelming.
I think it’s clear that we are in a major economic crash and this is only in the first few months of what will probably be a depression that will last several years; longer if the FedGov keeps trying to “fix” things. Honestly, IMHO, I think we are in for a serious world of hurt. This has all the makings of a depression so big, that the country may not look the same on the other end. Yes, it’s that serious.
If you haven’t already, NOW is the time to start preparing for harder economic times. Actually, unless you have the financial wherewithal, it’s probably too late to put yourself in a safe position, but you can still do somethings. Below are some things to consider. Everyone needs to decide a plan that works best for them, but the below should get you thinking.
– Cut down on your spending and start saving more. Having cash on hand is going to be highly valuable soon, so cut down where you can (like going out to dinner a couple times a week). This gets tricky as there are somethings that you’ll need to buy now in order to be better prepared, but cut down on anything that isn’t necessary.
– It might be too late to pay off debts. Paying off or down your debt (or just staying out of debt) is always good advice, but we’re entering a period that may be changing rapidly. You might have a stable job and no problem paying your bills, but that could all change next week. You could find yourself suddenly needing your savings to cover your bills and mortgage. It’s my opinion that you should pay the minimum on your debt and start hoarding cash. You can always use the money to pay down your debt, but by saving it, you’re putting yourself in a position where you have options on what to do with the money.
– If you’re brave enough to have investments, or can’t get out of them, try to put them in a safe area (or as safe as possible). I have a good friend that can (legally) transfer 401K investments into physical gold and silver. His business is booming as people learn that they can do that. If you’re interested, check out his site for more info on this (goldenira.net)
– If you can find any, buy some gold and/or silver. This is one way you can protect your wealth. As the value of the dollar goes down, meaning you can’t buy as much with it as you used to, the price of gold and silver goes up, thus retaining its value. For a more in depth look on what gold and silver are doing, and why, check out Jeff’s Gold and Silver site at http://www.flyingeaglegold.com. He points out relevant articles on the web, as well as giving some insightful posts himself.
– Stock up on food and hard goods. Food, clothing, shoes, tools, books, camping gear, etc. are all hard goods that you might be needing in the future. Especially consider your food storage. Look into increasing the amount of food that you store. At the very least, it will be cheaper to buy food now than it will in the future. Food prices have increased dramatically over the past year – just ask the person who does the grocery shopping in your family (if it’s not you). My wife has to do the food shopping now as I can’t even go to the grocery store without having a coronary over the prices. The US is relying more and more on imported foods. If these food imports stop, the price (and scarcity) of food will increase. Store food now while you can still get it for cheap!
– Place on being colder. As the cost of energy increase, along with the reliance on imported oil, energy prices are going to increase dramatically. Like food, as the price increases and if the supply decreases prices will spike sharply, you will be forced to use less. This is particularly dangerous in the winter where most people need electricity, gas and heating oil to stay warm. If you have (or can install) a wood-burning stove (not fireplace), stock up on wood now (and make sure it’s secure from thieves!). Additionally, make sure you have plenty of blankets and warm clothing. Figure out how to heat one room in your house and which room it will be.
NOTICE: This is not professional financial advice. Do your own research.