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It is NOT a matter of IF another economic collapse happens, it is a matter of WHEN and HOW you can prepare for. We don’t mean to be fear-mongers or cynics, but history would suggest the world cannot operate without an economic crash every so often. It could be a political move that sends us spiralling down, perhaps Trump will annoy Putin or vice versa. It could be that the next generation of bankers doesn’t remember the risks they run, get greedy with mortgages again and see another bank too big to fail actually fail. It could be a zombie apocalypse that sets it off.
The point is, any economic collapse will worsen spending habits, poverty, disrupted social order, protests and maybe even violence is inevitable. That is why you should always prepare for the worst. And here is how you can do that.
Your Finances
This is a huge part of protecting yourself from the turmoil of a crash, and your first move should be saving up an emergency fund of at least $1000. Once you have reached this figure, divert all of your attention to paying off your debt. Once that is done, go back to increasing that emergency pot of yours, and make sure you keep it separate from all of your other accounts. Temptation can be a hard thing to resist. The reason for this is simple; an economic crash sees people lose their jobs and it can be near impossible to land yourself another role until the economy picks up again. If it is a total crash, then you need to protect against the unknown, which will be you not being able to access your account. As such, it is worth having your emergency fund available in cash, cold hard cash, or consider stocking other commodities like gold; anything that can be used to barter.
Clean Water
When an economic crisis happens, a serious one, it is possible that certain supplies may get cut off, such as water and power. Now, it can be hard to store power, unless you have a generator, but you can store water. So make sure you have a stash of drinking water than can be used for drinking, hygiene, and cooking. As a rule of thumb, store a gallon of water for each person, and store it in a clean place.
Food Supply
This is not a grocery shop. No. Storing food for an emergency means buying non-perishable goods. This may seem like a drastic measure to take unless you are in a war zone, but an economic crash can see fuel run out and prices of essentials sky-rocket, so make sure you have enough food to cover you for when times get hard. This should be stuff that doesn’t require refrigeration and has all nutrients you need to sustain a healthy and balanced diet.
Emergency Kit
Once again, in an economic crisis, these items tend to go quickest, so make sure you have a stockpile of specific items that you may need in an emergency. These are things like blankets, multi-use tools, matches, battery-powered radio, cell phone, charger and maps, and torches. You should also make photocopies of any proof of ID and address, as well as have first aid supplies just in case. Know the contact details of family and friends that you may want to contact and, if you have a baby, then make sure there is a supply of nappies, food, and formula.
