What should you do to prepare for the economic upheavals that are sure to come?
Consider this list of known events in recent months:
- Stock market ups and downs are taller and shorter, plus closer together; since 2008 many have lost their entire retirement savings.
- Savings among the average worker are 1% or less.
- The gold standard was eliminated in 1971, allowing our currency to float.
- All world governments have been increasing “Quantitative Easing.” (This is where central banks purchase government securities in order to lower interest rates and increase the money supply.)
- The Consumer Price Index bag of goods has changed.
- Seventy-five percent of workers are living paycheck to paycheck.
- Big banks have been bailed out of their problems, but are still in them.
- Over 1,500 small banks have failed in last few years.
- Soon the U.S. government will not even be able to pay the interest on its debt.
- There have been very serious economic problems in Europe… Greece being one of the hardest hit.
- U.S. Census data shows the average worker reaching age 65 will have has less than $60,000 in total assets, including equity in their home.
What should we do to combat these problems and help protect against looming financial collapse?
After having coached hundreds of people on how to deal with their own personal economic collapse, I offer my Money Mastery experience of many decades on how to deal with spending, debt, and retirement issues. It may not solve the world’s economic problems, but it will definitely help you with your personal economic issues and in the event of a massive financial crisis, you will be prepared personally while others are panicking.
The Money Mastery solution:
1. Stop living paycheck to paycheck by creating a Spending Plan using reliable forecasting and expense categorizing software. You can access a FREE version of this software by signing up for the Basic Money Mastery online program here.
2. With a Spending Plan, which will allow you to see where you are wasting money each money, take that “wasted” money and create a cash surplus.
3. Using a forecasting software such as the one suggested above, create a Debt Plan to eliminate all bad debt (including your mortgage) in 10 years or less. Part of the power to do this will be from using part of the cash surplus you create when you get your spending under control, as mentioned in #2.
4. Again, using the software create a Savings Plan and begin putting away emotional and emergency savings. The software will show you how to use the other part of your cash surplus (even if it is a really small amount), to begin saving money for emotional events (impulse spending, fun money, purchases you weren’t planning to make) that are sure to happen. The software will also help you save for emergencies. Use this emergency money to purchase extra food, water, and medical supplies you can have on hand in case you lose your job or even worse, have to deal with widespread economic disaster.
5. Develop a trade or skill you can provide that will be necessary in the event of economic difficulty such as plumbing, sewing, food production and preservation (learn how to garden), construction and woodworking, first aid, mechanics, etc.
6. Store recognizable silver and gold coins worth three months of expenses; store extra coats and blankets.
7. Buy a generator that runs on propane gas, as well as gasoline.
This list could go on and on, but I hope you get the idea. Do something different than you are now doing. If you are not saving money each month, then do so. This will be something different. Learn what kind of coins to own, by studying and then purchasing them. Get acquainted with storing food and water. Read about what happened when gasoline was rationed in the 1970’s, or what happened when Hurricane Katrina hit the Gulf Coast. Immerse yourself in what life was like for almost everyone during the Great Depression of the 1930s. Learn from people who have lived through a situation and do what they advise to do if they had known in advance that something terrible was going to happen.
Now what if nothing ever happens and you have done all the above suggestions? Is it a waste of time and money? Of course not. As a former Boy Scout and a long-time Boy Scout leader, I can say that the BSA’s motto of “be prepared” never hurt anyone, ever! What peace of mind would you have, knowing you can live comfortably for six months with your own food and water storage? How would you feel knowing you are well on your way to getting out of all debt? Wouldn’t it be great to know that if you lost your job you have emergency savings you could live on for at least three months, maybe longer while you look for more work? Wouldn’t it be nice to have $3,000 in coins saved in a safe place? You’ll feel terrific! And the reason I can say that is because I have tried to live these ideas and do these things over the last 30 years and it has brought great peace and blessings into my life and the lives of my wife and children.
All of these issues apply to The Law of the Harvest. You get what you sow. You know the old saying, “A stitch in time, saves nine?” And we all know Aesop’s fable of The Ant and the Grasshopper. The grasshopper played too long and then winter came and he was cold and hungry. If the ant was not prepared, he could not have assisted the grasshopper. So I suggest you get prepared, so you can help your close family and loved ones. If financial disaster happens, even to a small degree, you can feel rewarded for your forethought and preparation. If enough people get prepared, we can keep from falling all the way down the financial “slippery slope.” Do it now!