Catastrophic emergencies can come in many different forms.
One of the most challenging can be a financial crisis.
And you’ll be in a world of hurt if you don’t take steps to prepare for the coming economic collapse.
The odds of an economic downturn are incredibly high, and we could be heading for a full-blown collapse.
The only thing left to see is when it will happen and how severe it will be.
Years and years of excessive government spending and bad monetary policy have put the United States in this position.
Despite Donald Trump’s best efforts to reinvigorate the economy with tax cuts and deregulation, the country’s absurd collective debt, both public and private, is going to cause a collapse.
The so-called mainstream media and Hollywood celebrities are hoping with ghoulish anticipation for a recession so Trump’s reelection chances take a hit.
What these leftists don’t know—or don’t care about—is that the stock market is not the sole territory of rich people.
Average people are in the market both actively and passively.
For example, the biggest fund in the market is the California teacher’s pension.
A recession would slam people who are close to retirement.
The effects of economic collapse can be truly harrowing in several aspects.
That said, there are ways to mitigate the impending damage.
First, be sure to have a healthy emergency fund.
The majority of Americans can’t even handle a $1,000 emergency.
This is due to government policies that encourage people to borrow and spend instead of save.
Have at least $1,000 in cash on hand.
Ideally, you’ll want to build an emergency fund that can cover your expenses for six months, because a recession could lead to unexpected unemployment.
Next, get rid of debt.
Interest rate hikes might spell doom on an adjustment rate mortgage.
Balloon payments caused many subprime borrowers to walk away from houses that they couldn’t afford in the midst of the 2008 crash.
Debt is a killer, especially during an economic downturn.
Next, limit your expenses as much as possible.
During a recession, you might need to tighten up on spending.
A budget should be an accurate accounting of all your monthly payments.
Instead of simply tallying your expenses, determine a workable budget, and then spend the money accordingly.
Before the month even starts, all of your money should be accounted for.
Moreover, you should take a good look at investing.
Bare markets can be some of the best times to buy because quality companies go on sale.
The advantage of being a smaller investor is that you can be nimble and take advantage of price fluctuations due to huge investment forms buying and selling major assets.
Some investors believe that when there’s blood on Wall Street, it’s time to go shopping.
If you’re a bit further away from retirement age and can ride the wave of the market, buying more stock can be a smart play.
Over a 15-20 year average, the market essentially yields 8% returns.
A recovery will likely see your portfolio rise to greater heights.