How to Survive an Economic Collapse

It’s a situation without precedent. Our economy was originally designed to handle times of prosperity, not crisis. As we plummet into a new era of unprecedented debt and economic decline, only one thing is clear: In the years ahead, you will have to become more innovative, more resourceful, and more efficient than ever before. And you will have to do this not just so you and your family can thrive, but so you can simply survive.

But the question is how. During the worst scenarios—a depression or a deflationary spiral—most banks will be closed, transactions will be halted, and loans, payments, and commerce of every kind will be impossible or severely restricted. When that happens, what are your options to put food on the table, pay your mortgage, and keep a roof over your head?

Here are 10 Things To Do To Survive Any Recession

1. Discipline

That means spending less than you earn to build up an emergency fund of three to six months' worth of expenses. That fund should be placed in a savings account or some other more stable place where you won't have to worry about high withdrawal fees. But don't wait until you're in trouble to build up your emergency fund.

2. Stock the Supplies Necessary to Survive

Food storage is a great way to ensure that your family will always have enough food to eat, even when the economy suddenly takes a turn for the worst. Having ample food storage doesn't mean you'll never have to shop for supplies at the grocery store, but it does mean you'll be able to fill in the gaps with your existing food supplies to ensure your family doesn't go hungry.

3. Grow Your Own Food

If you have ample land, seeds, and time, you could try to grow your own food. This takes a lot of work, but it also offers a lasting supply that could last for much longer than what you get at the store. And, unlike the canned food you buy from a store, it's fresh, and you'll know its source. Taking full advantage of your backyard and the surrounding area by growing fruit-bearing trees and other plants can provide your family with the food they need to survive (or even thrive) during hard times. You can also serve as a neighborhood source for cultivating food and even barter your time and services to get things your family needs.

4. Wash and Reuse

Like any other good survival plan, money-saving habits should be instilled right from the start. One of the easiest ways to save money and reduce your carbon footprint is to wash your clothes in cold water. You can use one of the high-tech water-saving washing machines to help you out here, or simply wash your clothes by hand. Either way, you'll save a lot of money on your utility bills and reduce the amount of water you use.

5. Build Relationships

In times of economic downturn, you need to find a way to stand out and be seen as a resource to the community. That means making yourself available to friends and family and others in your social circle by engaging them in conversation. If you've never done this or if you've done it but didn't find much success, it's time to rethink how you approach this kind of thing. It's time to reach out. It's time to get involved. It's time to know what's going on in the world around you. Doing so will help you build relationships and increase your social standing, and when the time comes, they'll be more likely to help you, be it by giving you money or a job or items you can barter with or whatever else.

6. Be Ready to Protect Your Family

Barring the worst-case scenario of martial law or collapse, crime will likely always be a threat during times of economic hardship. And even though outright civil war is unlikely, we still need to be prepared in case you are ever confronted by someone with ill intentions. So it's important that you know how to react should you encounter an intruder or find yourself in a dangerous situation. Invest your time in learning necessary self-defense survival skills, find the best ways to protect your home, and get training for any weapons you own.

7. Invest in Precious Metals

This may not be for everyone, but if you're looking for some physical items to invest in and protect your family's wealth, precious metals may be the best option. With people and nations looking to regain their economic dominance, we're likely to see a lot of action in the gold and silver markets. If you want to get in on the market without dealing with the hassle of the stock market, precious metals are your best option.

8. Always Avoid Debt

We live in a capitalistic society where the money is king, but it's important that you remember that it ultimately isn't real. It's just a tool that we use to control the human population. Beyond a certain point, you need to realize that acquiring more debt is not going to solve your problems. Owning more stuff is not going to solve your problems. Debt and material possessions just burden you and slow down your financial growth. So, get out of debt, and move to a minimalist lifestyle if you aren't already there.

9. Medication and First Aid Supplies

When an economy starts to crash, it takes a long time for health care to respond to the changes. Hospitals begin to cost more and become harder to access. Quick evacuations in the event of an escalating disaster become more difficult to manage, and resources become harder to come by. Make sure you're always prepared.

10. Have the Right Attitude

You're not going to be able to control the economy or weather the storms. Don't attempt to do so. But you can control your thoughts, your attitude, and your reactions to everything that happens. The right mindset can boost your confidence and help you get through the tougher times. And it's important to keep in mind that money isn't everything. It'll help you buy your way out of some situations, but sometimes you just have to face crises head-on. Regardless of the circumstances, aggression, anger, and a negative attitude can only bring you down. If we're going to have to survive under very trying conditions, we're going to need to use every resource we have to do so. And for that, it's important that you keep your cool.

Conclusion

The idea of an economic collapse may seem like a pipe dream to many. But it takes only one household emergency—a job lay-off, a health emergency, or even a family's need to relocate—for a family budget to be suddenly strained. If the unthinkable happens, following the steps in this article will at least ensure that you're protected. And in the years to come, when the next crisis hits, you can rest easy knowing that you have systems already in place that will help your family survive.