Financial preparedness is preparing ourselves to survive possible financial tough times. How do we do this? As discussed on the home page, the best way to be prepared and have peace of mind is to prepare for the worst and then live and hope for the best. What would be the worst case scenario? Probably a major stock market crash or hyper-inflation where our currency gets greatly devalued or we entered another great depression. Or paper money for some other reason becomes fairly worthless. In these situations, people will revert to the good old faithfuls of gold, silver and other goods of true worth. To be prepared for such an eventuality we need to look at the following:
For official financial advice, please see your personal financial advisor.
Whatever you have but do not own can be taken away from you if you default on your payments. In a time of economic depression, paying off your debt could be extremely difficult. Remember that debt is the chief cause of the present economic situation; so get out of debt as soon as possible. It's by no means easy. It's like trying to quit a bad habit. Part of you may be saying: "What the h....! It's not worth all the hassle and inconvenience. Things are going just fine. This economy crash stuff will probably never happen."
Well, I sure hope it doesn't. But it may. And we know that getting out of debt will bring us a great sense of freedom and peace of mind. So do yourself a favour and draw up a plan of cutting down on non-essential expenses until you've paid off your debt. There are ways of accelerating paying it off and reducing your payments. If you have a lot of credit card debt at high interest rates, see if you can get a "line of credit"from your bank at a much lower rate, and pay your credit card off with it. If your line of credit is already full, then it's time to take a serious look at your priorities in your life. Get professional advice if you need it.
Sometimes part of the problem of getting out of debt may be challenges in your relationship or having a mortgage. More ....
In tough economic times, the likeliness of losing your job is much higher, and if you only start thinking about another job or source of income then, you will already be at a great disadvantage. Rather take the time now to do some research into this matter, just in case.
The best skills to have in tough times are practical trades that people will need, like house repairs, carpentry, plumbing, and electrical.
If you are computer literate and Internet savvy, the possibilities are boundless. However, I am not saying it is easy. You may have to really work at it and do lots of research and courses, but there are a lot of people making money at it. That is, as long as the Internet stays up! Just pray that it stays that way and is not compromised in your area by natural disasters or a nuclear EMP (electromagnetic pulse) blast, etc. Here are some of the ways to develop income on the Internet:
In a crisis economy when cash is in short supply or not worth much, bartering will be of key importance. So it is important to think ahead about what you can use to barter with other people. You can either barter with goods or with skills. If you happen to have an excess of things like food, medical supplies or equipment, you can swap them for other items that you are short of. You can also use your "junk silver" and gold coins for bartering; but, the most effective thing to barter is a skill. If you are a good plumber, carpenter, welder, or anything else that people could need, you can swap your service for certain items that you are short of. If you have time on your hands and no practical skill, do yourself a favor and learn one.
If you cannot barter the items you don't need, have a garage sale and sell them. And if you cannot sell them physically, EBay is a good idea for an online garage sale.
More tips for your abundance and prosperity can be found here: General Tips for Your Abundance and Prosperity. You can also submit your own suggestions on that page!
For the Financial Assets section, go to the Financial Assets page.
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