There is a chance that the world could be heading in to a depression, so it seems appropriate to make a list that will come in handy should that eventuate. We all hope that it won’t be the case, but there is no reason at all to not be prepared just in case. Hopefully at least one or two of these tips will be useful to you all.
It is a very good idea to get to know your neighbors well – even in times of a normal economy. Your neighbors can keep an eye on your home while you are away, they can feed the pets, and they can lend you a cup of sugar if you need one! In the event of a depression they can be even more useful – you can create a small community where you can share necessities that one may have and others lack, you can set up patrols (if the situation were so dire as to need it), and you can even have shared meals which can help to keep waste and costs down.
If you have a considerably large amount of money, you will probably want to consider investing some of it in metals – such as gold and silver (though these are already seeing massive price increases). Of course, if you have a fortune you probably already know this, but it doesn’t hurt to remind people. In the event of a collapse of your nation’s currency, you will need a backup – and precious metals have been shown in the past to be an excellent one.
If you regularly take medication, try to stockpile as much as you can. In a depression you may find that you can not afford drugs, or – in a worst case scenario, the drug companies may go under! Additionally, store up bottles of aspirin and other common over-the-counter drugs that we all tend to use from time to time throughout the year. As you use these drugs, be sure to use the ones that are the closest to their expiry date – to prolong the life of the others.
Right now. Begin saving as much money as you can. Cut down on all of your expenses (except debt repayment) and save every penny. If we end up in a depression, you are going to need it. This is also a good time to start thinking about selling any items in your home that you may not need. If it becomes very likely that a depression is going to hit, sell everything non-essential – that means the TV, DVD player, stereos, etc. I would recommend that you keep your computer (preferably a laptop in case you lose your home and need to move around) as it will come in handy when the depression ends.
You should try to get rid of as much debt as you can right now. While you can pay your mortgage now, you may not be able to in a month – and as banks are feeling the pinch, they are not going to tolerate even one missed payment. This can obviously lead very easily to you losing your home. If you think the recession now is painful, try suffering it on the streets! This is a tip to help you cope before the depression hits. If you find yourself in an untenable situation and the depression has already arrived, forget this tip and read the bonus item carefully.
If you own stock, it is now a good time to consider the types of companies that are likely to do well in a depression – these are the companies you should move your stocks in to. The companies most likely to survive and profit are dry food manufacturers, diaper and toilet paper manufacturers, and any company making products that are seen as essential to survive. “Comfort” and “sin” stocks like cigarettes, alcohol, etc. are also stocks that do extremely well during bad times as people rely on them to blot out their suffering.
Some trades are more in demand during a depression than others. For example, a baker, a handyman, or an electrician should be able to find work during the worst economic downturn, but a change control facilitator may not. Invest in some good old fashioned skills now and not only will it help you survive a depression, it may well be a complete career change for you in the future.
Right now you should be hoarding dried and canned foods. Also tablets for purifying water and other nice-to-haves like toilet paper, candles, and batteries. I know this sounds like preparations for a nuclear holocaust, but the effects could be horrifyingly similar. Keep all of your goods in a dry clean area. I would also recommend a book on the basics of cooking, so you can convert your flour to bread and perform other culinary miracles that require nothing processed or pre-packaged. This is a skill that will be invaluable whether we have a depression or not.
If you think you are in a job that is likely to not be needed during a depression, you should consider relocating to an area that has a lot of wildlife and land. If you lose your house, an investment in an RV now (not on credit!) could be your life-saver. You can drive it to a new town, find a private area where you won’t be disturbed, and park up while the depression rides out. Make sure you find an area where you can rely on plentiful fresh water and animals – which brings us to item one…
If things get so bad that people begin to steal off each other, this will come in very handy. You can use it to protect your family and belongings, as well as to kill animals for food. And if you really are in dire straits, you can use it to rob someone else! (Okay – I didn’t mean that – we should all try to help each other out – not kill each other). A gun will be most useful in hunting so be sure to buy one that is practical for shooting birds and larger animals. You will also want to buy a book on how to skin, clean, and prepare wild animals for human consumption.
Okay – this is going to appear very controversial – but this is about surviving a depression; this is a matter of living or dying. If you are about to go bankrupt, are out of work, and see no hope in the foreseeable future of correcting this situation, use your credit cards right to the limit to put yourself in a better position – whether it be buying food, or moving somewhere you might be able to find work. If we really do enter another great depression, you will have to be prepared to do things you would normally not do in order to ensure the survival of your family and yourself. Under any other circumstances, this would be a very very bad thing to do.