Countries around the world, including the United States, have been experiencing recessions, depressions, market crashes, and debt crises for years. Although not entirely unpredictable, these dire situations often come as a surprise to most citizens. Mostly because nobody really thinks it could happen to them. Or, if it has in the past, surely it can’t happen again. The truth is it can happen to any country, anytime.
Just after Wall Street imploded in 2008, Greece admitted they had been understating their debt for years. The entire world refused to allow Greece to borrow any funds, and the country was headed for bankruptcy. They eventually received two bailouts, but at a price.
They had to agree to severe budget cuts and steep tax increases, including a 450 percent increase on the cost of heating oil. As a result, most people could no longer afford to heat their homes properly and are burning unclean, toxic materials. Since the bailout money has gone to pay international loans, and not to Greece’s economy, they’re still seeing a 25 percent unemployment rate.
Are you prepared for the next US economic crash?
Most people who have been paying attention know that the US economy is in bad shape, but not everyone knows exactly where or when it’s going to be felt by all of us.
Here are 6 things you need to do to prepare for the next US economic meltdown, that according to banking insiders is inevitable.
1. Invest in tangible goods
If the economy completely melts down, your credit cards, debit cards, EBT cards, and personal checks won’t work. You won’t be able to run down to Walmart for toilet paper and socks. Your money might look good as large numbers in your bank account, but when the economy collapses, only tangible goods will help you.
The goods you should be investing in are goods that you and your family will use for daily needs like toothpaste, soap, floss, dish soap, etc. Also consider investing in goods that can be traded, even if they have no value to you. Cigarettes, for example, are a good item to keep on hand even if you don’t smoke, because in an economic crisis, they’ll be like gold to people who do smoke.
2. Invest in metals
Metals like gold and silver will always have intrinsic value. That’s why money was originally made from precious metals, and dollar bills were backed by tangible gold while the Gold Standard was in place.
Buy some 1 oz silver coins or bars, and stash them somewhere safe in your home. The 1 oz coins and bars are ideal because they’ll be easier to keep in your pocket for trading when needed.
3. Get out of debt
Getting out of debt is the best thing you can do for yourself. It involves more than just paying off bills and credit card balances. If you have a mortgage or a car payment, that’s debt you’ll want to take care of as soon as possible.
There are people who have taken on 3 or 4 jobs to pay off their mortgage in just a few years, and while not everyone can be that dedicated, there are ways (and reasons) to be mortgage-free.
When a financial crisis hits and you can’t pay your mortgage, you’ll lose your home because you don’t actually own it – the bank does. Take this into consideration before taking out a new mortgage, refinancing, or making other home buying decisions.
Once you’ve gotten out of debt, find legitimate credit repair companies to get your credit clean. Don’t just choose anyone. There are credit repair companies that use illegal tactics to remove even legitimate items from your credit report, all in an attempt to raise your score and collect their fees. Do your research and choose a reputable company.
4. Store food and water
This is the most important of all. Make sure you have enough food and water for a minimum of three weeks for every member of your family. Although three weeks is the absolute minimum, it’s smart to have a year’s supply.
5. Keep your car’s gas tank full
If you get into the habit of always keeping your gas tank full, you’ll never have to worry about being caught in an economic crisis with an empty tank. One of the first signs that things are about to go south is when gas stations run out of gas. You don’t want to be caught having to sit in long lines just to get a couple of gallons of gas. Make it a habit to always fill up when you’ve used a quarter tank and you’ll have a major advantage over the masses when the next economic crisis hits.