There are so many issues that can quickly spin into crises.
One of the biggest obstacles to clear is a financial hardship.
There’s a gigantic economic collapse approaching, and you must do this to be ready.
Liberal economic policy has put the country in serious jeopardy.
For many decades, politicians have promised Americans “free” stuff for their votes.
But politicians aren’t reaching into their own wallets to pay Americans. They’re siphoning money from the taxpayer, taking their cut, then giving it back to the taxpayer and patting themselves on the back for their efforts.
Such careless spending has swelled throughout the years to the point where the United States is now $22 trillion in debt with no good options on the table.
Entitlement programs and unfunded liabilities have essentially bankrupted the country, but the Keynesian philosophy of spending in the present and disregarding the future is a foolish bargain in the long run.
Eventually, the bill will come due.
The 2008 collapse should’ve been a wake-up call that the system was in tatters.
But Barack Obama opted to spend even more, doubling the debt during his two terms in office.
The economy has been due for a recession for years as monetary policy set by the Fed inevitably leads to artificial booms and busts that occur roughly every 7-10 years.
Donald Trump’s tax cuts and deregulation efforts, particularly in the energy sector, have staved off disaster, but the collapse is coming and some economists believe it will be far worse than 2008.
Until the government significantly reins in spending, the pain from each recession will deepen and do even more damage.
Here’s what you need to do to shield yourself from potential economic disaster.
First, consider investing in precious metals.
Historically, gold and silver are sound hedges against inflation and market volatility.
Over the past 50 years, gold’s value has increased by 3,200%, so it doesn’t hurt to have a small portion of your portfolio in precious metals.
Next, it’s better to sit in cash and wait for a strong investment opportunity than to panic.
Inflation obviously diminishes the value of the dollar.
The average rate of inflation is approximately 3% per year, which means your investments need to be making at least 4-5% to be worthwhile.
Monetary policy under the Obama administration cut interest rates to virtually zero in an attempt to encourage spending over saving.
Savings accounts essentially became obsolete for growing wealth.
The liquidity of having some investment cash on hand will allow you to strike quickly when a good opportunity presents itself.
If there’s a market correction, there will undoubtedly be good companies on sale.
Savvy investors who can stomach seeing their stocks tumble in a panic welcome bear markets because of the discount prices for strong companies.
Finally, try to build a supplemental revenue stream.
The ideal goal would be to have an investment that’s giving you passive income.
Having extra money without draining too much of your time is perfect for weathering tough economic times.
There’s also the possibility of developing a side business.
The more revenue streams you have, the better protected you’ll be against a sudden downturn.
Many people have started off as amateur podcasters who eventually became successful enough to quit their day jobs, and something like that can happen relatively quickly.