Three Tips for Surviving an Economic Collapse

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During the crisis of 2008 many people wondered what they could do in order not to lose their savings. Especially North-American and European countries were hit hard in the following period. For example, Greece was arguably hit the hardest and its government chose to build up a sky high debt. The result was that banks froze all accounts and that they set a limit for people to withdraw their money to prevent a bank run.

If you look into what our modern banking system looks like, you'll realize that it's just a matter of time before the banks' artificially made bubbles explode and the value of fiat currencies crash. This phenomenon called hyperinflation, has occurred various times before, for example in Germany, Yugoslavia (see my post of yesterday), and many countries in Latin America. When it happens, the best thing is to spend your money as fast as possible before it loses all its value.

What can I do to secure my earnings and to survive after an economic collapse?

I would like to share three ways to become financially independent, which could come in handy after an economic collapse.

1. Invest in goods that have intrinsic value

In the case of a financial crisis, it's important to own alternatives to government-issued fiat currency that maintain their value in the long run (or even increase in value). An example: Let's say you buy a car today for $5,000 while the USD is expected to inflate a 100% over a period of five years (so in five years your money will be worth half of what it's worth today). In five years your car will be worth $10,000, while you would have only half of your purchasing power if you left your money on your bank account. The car has maintained its value, while the money has not. This principle is applicable to all kinds of goods and is a good alternative for those who don't want to see their earnings disappear on their bank account.*

*Other interesting goods are precious metals, but to keep it simple I've used a car as an example.

2. Form a community

It's important that you don't end up alone after an economic collapse. So look for people in your area who want to cooperate with you. This way you don't have to survive on your own and you're able to divide tasks among different people. This doesn't necessarily mean that you need to persuade all of your relatives and friends into preparing for an economic collapse. This is about finding new people who have the same interests as you do - you build a new network. Try to be active in your community by attending community gatherings, creating a communal garden of by organizing events yourself in order to get to know other people.

3. Invest in yourself

One of the most important things that you can do at any moment is investing in yourself. This can be done in various ways: first of all, it's important to just learn. Learn to trade or learn a trade that you can 'barter' with in exchange for other goods and services. An economic collapse may take away your savings, but the things you learn you'll keep forever. Think about how many people don't know how to fix their car or do small repairs on their house. If you do know this, you can use your traits to exchange your services for the things you need.

Investing in yourself also means to improve your health. After an economic collapse it might not be certain you can get medicin easily. Try to eat healthy, stay fit and maintain stamina, so that you reinforce your immune system and are able to prevent disease.

That's all folks! If you enjoyed this post, be sure to upvote, resteem and follow me at @rvanstel. Have a nice weekend!