Economic collapse can be defined as a period whereby a country, a region or a territory experiences economic disintegration characterized by recession due to loss of business thus resulting in financial crisis. Economic activities are low and social order is disrupted during this period. Some of the major causes of this phenomenon include:
1. Hyperinflation: This happens when a government prints money in excess thus leading to a rise in the prices of goods and services.
2. Stagflation: This happens when a country that is experiencing a high rate of inflation has its economy growing at a slow rate.
3. Stock market crash: When investors lose their confidence in a stock market, a decline in stock prices occurs across the board thus leading to a stock market crash.
4 Tips on Prepping For Economic Collapse:
For any type of an anticipated crisis, prepping is crucial for survival. Prepping for an economic collapse helps you to lower the impact that the collapse may have on you and your loved ones. Below are tips on how you can prep yourself:
1. Financial preparation:
In the eventuality that you lose your job during an economic collapse, it may be hard for you to get another one as fast. Starting an emergency fund would when you have the job would cushion you during such a period. Ensure that you have enough money to cover your expenses for at least an year in case of an emergency.
Ensure that you have easily accessible cash for example in a home safe just in case accessing your emergency funds takes longer than anticipated.
2. Have multiple sources of income:
Losing your job or closing your business due to lack of clients as a result of an economic collapse can be draining. If you have a skill that you can monetize, start a business that will give you an alternative income source. Doing a business that provides services and basic needs like food for people during such a crisis would be ideal.
3. Stay debt free:
If you are repaying a loan, plan to be done with it as fast as possible. This will protect your property from being reprocessed in a case whereby you are unable to repay your debt due to job loss. Track your income and expenses to be aware of your financial health. This will help you to budget accordingly.
4. Have emergency stock:
This includes food and other consumables. Ensure that you have non-perishable food and clean drinking water that can last you for weeks in case of an economic collapse.
Finally, it is also important to ensure that you have an emergency kit that contains essential household items ready. This includes, blankets, torches, disinfectants, first aid and medical supplies, copies of important documents, emergency contacts etc. Remember to live within your means today in order to prep accordingly in case of an economic collapse.