5 Things to Prepare Now for a Year Long Economic Depression

I’m sick this morning.  So thank goodness for guest posts.  Enjoy. – Tim

In the event that we enter a long economic depression, those who do not properly prepare could be putting themselves and their families at risk. The best time to get ready for a depression is long before it happens. If you can pretend now that you are already in the midst of a depression, your chances of holding steady through the worst of it will be far greater.

Save And Put Money Away:

You will need money. The more you have, the better off you will be. Starting now, begin to live as if you don’t have any. This will leave you a bit extra for later. Keep all your money in the form of cash. You can keep it in the form of change, dollars, or gold and silver coins. It may sound crazy but during a depression it is better to use change to buy things. This gives the impression that you don’t have much money and there will be less chance of property or asset theft. So start filling up those jars and stashing them in the attic.

Get More Jobs:

If a depression is headed our way then there is no time to worry about relaxing on your days off. There is a good chance that a lot of people will be laid off before it is over. You may be one of them. Ask your spouse to pitch in and work more too. The more employers you have the less chance you have of becoming completely unemployed. You may want to get work overseas, whether you do it online or actually move somewhere until the depression has come to an end. If our economy is bad you may have better luck making money elsewhere. Remember to take all the extra money you make and stash it.

Eliminate Debt:

Pay off any large purchases and credit cards as soon as humanly possible, especially your car. Having a car payment will be a huge burden if you find yourself without much work. The benefit of owning your car outright is tremendous. Life becomes very difficult without transportation. Also, in the event that things get really tough and you lose your home, you can at least sleep in it while you try to stabilize your situation. As for credit cards, just eliminate them all together. With the hefty fees and interest card companies are charging these days, you don’t need them. If you get to the point where you can’t afford them, you may end up in debt forever when they are finished with you.

Learn To Do Things For Yourself:

It wasn’t too many years ago when people lived mostly on farms. A lot of them didn’t have dishwashers or electronic games and it didn’t cost them a whole lot of money to live. In fact building a windmill to harness power is an excellent family project that can help you prepare for hard times. Train yourself now to start doing more things manually and the transition will go a lot smoother.

Stockpile And Learn To Cook:

There is a lot to be said for a home cooked meal. The only problem is, not a lot of people know how to cook any more. If you think that home cooking is minute rice and frozen lasagna then you are missing a lot. There are simple things that you can make from scratch that will save you a lot of money. For instance, try making your own pasta. It only takes a few minutes and the results are fantastic. Not to mention the fact that it is nearly impossible to mess up the recipe. Begin to stock up on things like grains, seeds, beans and nuts. Canned goods are a good thing to have around and if you know how to can things yourself, even better. Learn to make your own bread. If you have any land, get a few chickens and a cow. This may sound outrageous but when people have very little money they will be grateful for the meal.

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About the Author

Andrew Wang lives in Seattle area.   He manages the blog: Travel Reward Credit Card.

5 thoughts on “5 Things to Prepare Now for a Year Long Economic Depression”

  1. This doesn’t sound like preparation for a “year-long” depression 🙂 In any case, even if the economy does go into a depression it doesn’t mean that you’ll be seen in black-and-white photos of people lined up outside a bank; it just means that it’s a bit worse than the usual recession.

    Just yesterday I was reminded that this isn’t even the first time since WWII that the US stock market has performed this badly, although it may seem that way if you only look at the performance in the mid-80s.

  2. Curious. Most of your suggestions are the OPPOSITE of what our oh-so-trustworthy politicians tell us to do. “Keep spending! Buy a car! If you are offered credit in this environment, you deserve it! BUY BUY BUY!!!”

    For the record, I agree with you. If we all act with a little more prudence, we can likely avoid a repeat of the mess we’re in now.

  3. CC,

    I agree with your assessment. Andrew’s post does fly in the face of the political advice. Which is likely a good thing since this happened on their advice.

    We don’t need spending. We need a good savings base again and then spending. Then we can see some real growth rather than stuff based on everyone getting a larger Line of Credit balance.

    Tim

  4. I guess I fly in the face of the “spend, spend, spend” advice. And, maybe it is wrong, but the more “they” preach the spend gospel, the more I resist.

    I have been saving, saving, and saving every single penny, nickle, dime, quarter, and dollar!

    Not comfortable with keeping much cash on hand in my home though. Hell, it could burn down!

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