Many types of survival situations or emergencies are localized events and people can generally limp their way through them.
But a full-on economic collapse will drastically change the daily life of almost everyone.
This is because modern societies have become so interconnected in every aspect that what affects one part of the world, will influence others.
Good News, Bad News
There are worldly events that act as warning signs and if you pay attention to them, they will alert you to the potential of a collapse occurring at some point.
The good news is that, typically, an economic collapse does not just happen overnight.
The bad news is in the event of an economic collapse, everything is affected.
A few examples of what can happen during an economic collapse are:
- The buying power of money goes down
- Prices of goods and services go up
- People lose their jobs
- Supply chains of goods are affected
- Food shortages
- Water shortages
- Power shortages
- Fuel shortages
- Crime goes up
- Utilities can be shut off and people can lose their homes
As you can see not having the ability to provide for yourself and your family is a serious situation to be in.
But, many people are in a position to prepare themselves right now to avoid some of the issues listed above or at least to be more comfortable while riding out such an event.
How To Prepare for an Economic Collapse
As with being prepared for most things, individuals must closely examine their lives and determine how they want to live now as well as in the future.
This can mean making some hard choices in how personal finances are used and the kind of lifestyle lived. But as said, examine your situation and determine what is right for you.
Please note that I am not a professional financial advisor and the following is not advice but simply ideas that one may consider.
But to a degree, we are all semi-professionals in this area because we must monitor and take care of our own finances regularly.
Here are a few things to consider about finances during an economic collapse.
Should the system fail, many people will lose their savings, retirement, and other investments very quickly.
This will leave people holding a certificate “that isn’t worth the paper it is printed on.”
When the economy is not doing well, it may be prudent to move monies out of the market and into other areas.
A Run on Banks
During a financial collapse, there could be a run on the banks, meaning large groups of people rush to these institutions to withdraw as much of their money as possible.
Many banks do not keep large stockpiles of cash on hand as they used to and a run on banks could quickly deplete the funds that are available.
Banks may also be closed during these times. This could simply be due to the lack of funds, civil unrest, or by the orders of the company or government.
So, there is the very real possibility you cannot access any of your accounts.
What to do About Banks?
There are so many different ways to handle and invest money that it makes my head spin.
I am not telling you the following method is what you should do, it is merely one option that does make sense.
Years ago I had a conversation with a person that told me their way of handling this particular problem, and here is what they did.
All excess funds were withdrawn from the bank in the form of cash and only enough was left in the accounts to pay monthly bills.
When they were paid by their employer, the check was cashed and again only enough money was put into the account to cover bills and monthly necessities.
All excess cash was invested in physical supplies or put into a safe.
Think what you will of this, but on some level, it makes a lot if sense having direct access and oversight of you money.
I have never had a head for numbers let alone financial investments.
The kind of investments that make sense to me are those of physical supplies and goods that I can hold in my hand.
Precious metals like gold and silver can be a great hedge against financial difficulties. But again, this only makes sense if the gold and silver are in the form of bars or coins and not a stock certificate.
Prepper supplies are great because they are products that you already use. So, items that are bought in bulk such as water, food, and hygiene products are things that will be used at some point.
If you own a vehicle and have equipment that requires fuel, this is one item you are going to want to stock up on and safely store.
Fuel can be in short supply to the masses and prices will skyrocket. Look back to “oil shortages” in the not so distant past to see what prices looked like and the long lines of vehicles stretching around countless city blocks of people hoping for a little bit of gasoline.
It is good practice to keep the tank in your vehicle full as often as possible. Should you be alerted to the possibility of financial troubles, top of the tank as often as you can.
Fuel can be stored in large or small containers. The large containers can be barrels or tanks that can hold hundreds of gallons. These types of containers would be well suited for individuals who have some land and are not intending on moving the fuel supply.
Smaller containers mainly consist of the cans that are sold at most hardware stores. These generally come in one, two, and five-gallon capacities. Almost anyone with a garage can store these and their small size makes them more portable should the fuel supply need to be moved.
Water and Food
Food and general supplies are going to take a hit during an economic collapse.
A few things that may happen are that supply chains dry up due to jobs being lost or the raw materials for products could become unavailable.
Food prices can increase dramatically when fuel prices increase and if there is a lack of reliable transportation for goods.
A loaf of bread that cost two dollars last week could now cost ten times or more, that amount.
This can be seen in the collapse of a few countries in very modern times where people stand in line for hours hoping to buy a little bit of bread.
Because a financial collapse can be so far-reaching and last for an undetermined about of time, long term food items need to be stored and renewable food sources arranged.
Long Term Food
The best foods to stock up are going to be ones that do not require any refrigeration. This is a space issue as well as food not being lost should the power go out.
Here are a few recommendations for shelf-stable foods that require no refrigeration.
- Water. While this is not food, water is critical to life and is required in cooking as well as for our bodies to be able to process food. Store as much clean water as possible, filters, and purification supplies.
- Canned goods. These make up the bulk of many pantries because they are cheap, require no refrigeration, the contents do not need to be cooked, there are a variety of options to choose from, and they have a best by date of one to two years, though they can certainly remain safe to eat for much longer.
- Sauces. Certain sauces like spaghetti sauce can go a long way in making bland foods more palatable.
- Grains. Whole grains will last the longest but will require a means if grinding.
- Pasta. Provides a lot of carbohydrates and a small amount easily feeds a family.
- Flour. Can be used for numerous recipes, baking, thickening dishes, and making simple types of bread.
- Beans. Canned beans are a popular choice, but a supply of dry beans should be stocked as well.
- Honey. A fantastic sweetener that is said to have an indefinite shelf life.
- Oats and oatmeal. Simple, plain food that can be eaten as is or used in a variety of recipes.
- Dehydrated/smoked foods.
- Freeze-dried food. Depending on the brand, this type of food is going to provide a shelf life of several decades with minimal storage and cooking requirements.
- Spices and Condiments. This category should not be overlooked as much as it is. Other than providing various nutritional benefits, condiments can spice up boring meals.
Your best bet is to build a prepper pantry that’s ready for any challenges that may come up.
Renewable Food Sources
Stockpiles of food are eventually going to be used up, which is why a renewable food plan is needed.
Hunting, fishing, gathering wild edibles, and growing a garden are great ways of obtaining food without going to the local supermarket.
Hunting and fishing are going to require some capital to start off as well as a location that the activity can be done.
In addition to the gear needed to get an animal or fish, knowledge will be required for how to properly process wild game as well as how to preserve it.
Wild edibles are a great option because there is food all around us and it is free. However, foraging requires a lot of knowledge for proper identification and learning where wild edibles can be safely harvested.
Gardening can be affordable or expensive depending on the square footage and equipment used. But it will provide a healthy, renewable source of food that can be grown outside, indoors, and even year-round.
This is one topic that is not very popular to talk about, but needs to be discussed amongst your group.
Even if you have done your due diligence and have a well-stocked food supply, those items should be rationed as best as possible.
Now, this does not mean forcing bread and water for dinner when there is plenty of food available. But we are so used to eating more than we need that by rationing down to only what we require, will help to stretch out food supplies.
Medical supplies are great to have but knowledge and preventative care are just as important.
During an economic collapse, people are not going to be eating as well and a host of other reasons will cause negative effects on mental and emotional health.
Utilities may also be affected which means poor hygiene and a rise in sanitation issues.
Other than general first aid supplies, a healthy supply of vitamins, soap, disposable gloves, masks, oral care tools, and alternative sanitation supplies should be stocked.
Skills and Knowledge
If you are looking for something better to do with your free time, I highly recommend investing in a hobby.
Since money, goods, and services are all going to be in short supply during an economic collapse, there are many hobbies people can learn that could be very beneficial during a collapse.
Having certain skillsets will not only save you money by allowing you to complete projects yourself but they can also be turned into extra income sources.
And you never know, a new hobby may help you find an undiscovered passion in life.
A few ideas for topics to learn are:
- Alternative Power
- General home repairs
- Canning and other food preservation methods
- Identifying wild edibles
Personal Protection and Security
An economic collapse will undoubtedly cause very difficult times for many people and crime rates will certainly increase.
For this reason, security measures must be accounted for.
It is in everyone’s best interest to be able to protect themselves on some level. This could mean purchasing a firearm and going through proper training courses, enrolling in self-defense classes, or simply being in the best physical shape possible to deal with potential threats.
Extra attention will also need to be paid to homes and property so as not to provide easy access to criminal minds.
Security systems can be installed but understandably are costly. A few simple ways to detour would-be thieves are:
- Keep window shades shut to prevent others from looking into a home
- Keep windows and doors shut and locked
- Get rid of “doggy doors” as they give instant access to a home
- Display signs around the outside of the home advertising the installation of security systems, even if you do not have one.
- Ask neighbors to pick up mail and packages in your absence
Wrapping It Up
This type of event can be unsettling not only because its effects are far-reaching but also the instability it brings to household incomes which directly impacts the ability to provide for one’s family.
Some of the best financial advice I have ever heard is to stop investing in what you want but instead, invest in what you need.
As hard as it is, it may be in the best interest of many people to curb frivolous purchases as much as possible and invest in food, medical supplies, tools, clothing, skills, and knowledge.
An economic collapse is something that should be prepared for because it has happened in the past and they continue to happen throughout the world.
But if you start preparing today then you will be better prepared than you were last week.
Thanks for reading and stay prepared!
What do you do to prepare for an economic collapse? Sound off in the comment section below and let us know!