I hear from all the reputable financial gurus that our economy and the world economy is dangerously close to collapse. If this happens, what should you do to prepare for it today?
Allow me to suggest 3 things you can do now, before it’s too late:
First, save money and make that cash only. You can decide to put it in a bank or safe deposit box, or keep it under your bed in a tin can. But save money.
Second, inventory your home for food and water storage. Estimate how much each person eats and drinks in a month and then count up how many weeks you could you go without going to the store. Back in 1974 there was a truckers’ strike and the grocery store shelves were bare within a day or two. I walked in just to see what happened and a person was buying some shoe polish. I asked him why? He said because it was the only thing left on the self. This was sobering to me. Contemplate how many people will make a run on the stores if a gas shortage occurred, or a tornado, or extended harsh weather. I suggest you buy food that you will eat and have at least three months worth of both food and water. Improve upon this over time to achieve a six month to one-year supply.
Third, I suggest you get out of debt. Get out of all consumer debt before any other. If you have done this, then consider NOT paying off your home mortgage. Save this extra money until you can pay off your mortgage all at one time. You see, if you pay extra on the mortgage and then a financial calamity happens, you can not go to the house and pull out that extra money. You are stuck and may lose your house along with this extra money you paid down your mortgage.
There are still many things to do in preparing for a financial collapse, but doing these three things in this order will be the best preparation. For sound advice about how to save and pay down debt quickly, go to www.moneymastery.com.