“Every fiat currency since the Romans first began the practice in the first century has ended in devaluation and eventual collapse, of not only the currency, but of the economy that housed the fiat currency as well. (Daily Reckoning)” Even today we see a constant struggle especially in America for the dollar to retain value and resist devaluation. However, this will be a fight done in vain. So it is important to know how to prepare for economic collapse.
As the quote states above, every fiat currency ever invented has eventually collapsed. So that is a 100% chance of failure and of doom associated with that collapse. It is estimated that 7 million people died during America’s great depression, not collapse. So surviving in an economic collapse will be even tougher.
So then an economic collapse is imminent. It is not a matter of “if” but “when?” Since that is the case then we need to be prepared for this event. Below is a short list of suggested actions that we can take to prepare for an economic collapse.
How to prepare for financial collapse?
1. Get out of debt
This is something that I mentioned in a previous post but will mention again because it is extremely important. Many preppers have the mindset of charging off their credit cards to buy everything that they can when shtf. They believe that the debt will disappear and can’t be held accountable for it.
This is a flawed way of thinking if you look into history during other instances of economic collapse. Debt owners will hunt down the debtor through the court system. No matter how smart you are you won’t be able to hide from them and survive. We also see in history that debtor’s jail was implemented. So this is something that we could face if we are in debt during this time.
Getting out of debt also helps us to purchase more prepper gear and supplies. Instead of spending your hard earned money on interest for something that isn’t necessary you could reallocate that money to something that will really help you. Being financially free also keeps you from stressing out. You will already have enough to stress about when it comes to an economic collapse.
2. Stock up on prepper gear and supplies
As a prepper this should go without saying. In a previous post called Must Have Prepper Gear and Where to Start I gave my tips on how to start prepping. Also, I have put together an ultimate preppers list that you can download HERE for a list of all prepper gear and supplies that you should need.
3. Transfer fiat money to tangible assets
After asking how to prepare for economic collapse you have to consider what you will do with all the fiat currency that has become worthless. During an economic collapse you will either see a hyperinflation where everything is too expensive to afford or the currency will just be flat out rejected when attempting to buy something.
Therefore we need to take action prior to the event. The best option is transfer a percentage of that fiat currency to assets that are more tangible. For example, you of course will need to have your weekly money that you can use to pay bills and buy food. You should also have 6 months’ worth of expenses saved up for emergencies like being laid off from work or being injured. You will want this emergency fund in cash since it can be liquidated quickly.
However, you should also have a certain amount of the remaining savings transferred to assets that are more tangible like gold and silver. Gold and silver will always retain some sort of value. Most of the time when fiat currency collapses you will see a spike in the value of precious metals. As an example you can take a look at the gold and silver prices in 2001 and 2008 at http://goldprice.org. The prices sky rocketed while everything else was collapsing.
Investing in precious metals is not an investment that will make you rich but it will keep your assets safe. I would recommend first investing in silver minted coins since these can generally be used to purchase items with their face value. I believe that during an economic collapse gold and silver coins will be accepted more over fiat currency.
To get started I would recommend checking out SD Bullion. This is where I purchase all of my precious metals. They have a guide on their website to help you get started with your investments. I recommend JM Bullion because they have the top quality coins and ship it safely to your house.
There are also other tangible assets where you can transfer your money. Ammo and guns will be as good as gold when there is an economic collapse or any type of shtf scenario. Usually during times of unrest governments will restrict the sales of guns and ammo which will force people to turn to street dealers. This will cause the prices to quadruple.
Another possible tangible asset to invest is in land. This is of course a good investment if only the government is not stripping the land away from people. Now when I say land I’m not necessarily talking about houses and other structures on that land. Because back in 2001 and 2008 we see the price of the housing market tanked out. However, the price of land either stayed consistent or slightly increased.
4. Store items that can be bartered
On top of having real tangible assets and prepper supplies you should also have items that can be bartered. These are items that will be highly coveted during an economic collapse. For example, during an economic collapse people will not have the money to purchase items of comfort or luxury. People will be more focused on the necessities.
When you consider how to prepare for economic collapse you should think about such items that will become valuable during an economic collapse will be: batteries, coffee, medicine, toilet paper and feminine products, alcohol, propane, books, etc. The list really goes on. These items will really give you leverage when negotiating with others. Be sure to keep these in a secure place away from your other prepper gear and supplies. I would recommend even keeping these in a storage unit.
5. Become self sufficient
Becoming self-sufficient should be the ultimate goal of a committed prepper. If you are truly prepping for something chaotic then you need to find yourself in a place where you are not dependent upon anything or anyone including the government. When you ask how to prepare for economic collapse you are really thinking about the bare essentials to survival.
If you are self-sufficient you don’t have to run to the store hoping to get a loaf of bread for $10 during the economic collapse. You will have your own food. As humans we were meant to survive off of the land with our own hands. We weren’t meant to dependent upon a government and fake money.
The great thing about living off of the land is that the resources are renewable. Every plant that is harvested contains a seed that you can again plant to receive some more. Even the animals that you may raise reproduce an endless supply of food and even clothing.
During the economic collapse of Rome those that survived were farmers and the people that became servants to the farmers. Others died of starvation, violence or fled the country. So we should work to become dependent upon the natural resources of the land.
So the previous tips you can use when you ask how to prepare for economic collapse. Feel free to help the community by leaving your suggestions below. Also be sure to sign up for the email list to receive the ultimate preppers list and stay updated with helpful prepper tips and prepper gear reviews.
Photography by Eric Constantineau