I posted back in October some thoughts on preparing for a major economic downturn and argued that frugal living was an excellent defense against the hard times that are to come. Well, I happened upon another list of preparations to make for an economic depression that are a little bit more detailed. Suggestions are given in four categories, and I will give you my thoughts on each.
Food
• Begin stocking up your cabinets, pantries, and closets with non-perishable food items.
• Purchase a portable camping stove in case your home’s electricity is shut off.
• Start consuming a healthier diet so your body isn’t dependent on the processed and junk foods we’ve grown accustom to.
• If your have the space in your yard, plant and grow a garden.
• Stock up on vitamins and necessary supplements to ensure you stay healthy in the next Great Depression.
I think all of the above are excellent suggestions. One of the main points of my earlier post was to stockpile for the day when either you can’t afford to buy food from the grocery, or the food distribution channels we now know break down.
In addition to the camp stove idea, I would also suggest a gas grill, as you will be able to cook a lot more efficiently with a larger appliance. Also, be sure to have extra fuel for your alternative cooking appliance.
Household
• Discuss emergency plans with your family, roommates, friends, and/or loved ones.
• Store a stockpile of hygiene items including deodorant, toothpaste, towels, washcloths, and toilet paper.
• Make sure you have a hefty reserve of bottled water on hand, stored in a safe place.
• Keep extra pillows, sheets, and blankets in your closets.
• Have at least one shotgun, rifle, or handgun, if not more.
• Ensure you have enough ammunition to defend yourself, your household, and your loved ones in emergency situations.
I would agree with all of these, although I wouldn’t put the extra pillows and blankets as a big priority. Hygiene items are very important and something that can be easily and cheaply stockpiled (see my various posts about CVS and Walgreens deals).
The guns and ammo one is probably the most controversial, and it is one that our family is presently pursuing. If things get really bad we definitely want to have the means to protect ourselves and our property, especially living in an urban area. Add to this the legitimate concerns about the legislative and executive branches being controlled by a party that is historically anti-2nd amendment and the likelihood of sweeping gun control measures in the future, and you should make this put a very high priority.
Community
• Get to know your neighbors.
• Know who you can and cannot trust in your local community.
• Gather together with like-minded individuals in your community, choose designated methods of contact, and choose a few leaders.
• Pick a safe house, where your community coalition will go in emergency situations.
• Pick two alternative safe houses, in case the primary safe house becomes compromised.
• In times of peace, continue to make your community aware of political, social, and economic dangers.
This is where things start getting a little more extreme. I do think it is important to know your neighbors, although I do think these points sound more like organizing a militia than getting through a depression. I would say you should definitely get to know at least a few of your neighbors and make sure you are looking out for one another in case something does happen. From an economic standpoint, it would be good to take an inventory of skills of your neighbors so you can know who can assist with needs when paying for services with money isn’t an option.
Money
• Save paper and coin money in a safe place in your house.
• Invest in a small or medium size safe to store your money and other valuables.
• Slowly begin withdrawing from your savings and investment accounts on a regular basis. Store this money in a safe location.
• If you can purchase gold, buy it. Gold retains the same value no matter how low or high the currency markets go.
• Stop paying taxes to save money and force government leaders to listen to the citizenry, the people who put them in office.
I will somewhat disagree with this. While I think it would be good to have some actual money on hand in an emergency and it is definitely smart to secure it and other valuables in a safe, I don’t think withdrawing all your money from the banks is wise. For one thing, having excessive amounts of cash does make you more of a target for thieves. Secondly, you have to also prepare for the probability that nothing will happen at all. If you completely take your money out of the financial system you are earning no return, meaning that unless you just happen to have enough money on hand to support you for the rest of your life, you are pretty well screwed.
Hoarding cash also is unwise because of the real possibility of inflation, which means that the money will be worth less tomorrow than it is today. And remember that our money is backed by the U.S. Government, and if the U.S. Government fails the money very well could be worthless.
The idea of no longer paying taxes is an absolutely horrible one. I hate income taxes as much as anyone, but if you really believe things are going to get bad the last thing you need is the U.S. Government coming after you. If you are going into pure survivalist mode you want to stay as far below the radar as possible, and not paying your taxes is counterproductive in that regard.
Anyway, just some additional food for thought. I do believe things will get bad and that we should all make preparations for a prolonged economic depression.
