Signs are clear that a recession is looming.
Sudden economic hardship can be incredibly devastating for a family.
Here are four tips that will help you survive the coming financial collapse.
Liberal economic policy has run amok.
For several decades, politicians have bribed Americans with “free” stuff in exchange for votes.
However, politicians don’t take money out of their own pockets, they take it from the taxpayer.
This reckless spending has ballooned over the years to the point where America is now 22 trillion in debt with no desirable options on the table.
Entitlement programs and unfunded liabilities have all but bankrupted the country.
The 2008 financial crash should’ve been a wake-up call that the rigged game was broken.
However, Barack Obama chose to double down and plunge the nation into a deeper hole.
Obama thought it was a good idea for the country to spend its way out of a spending problem.
He doubled the debt during his two terms.
And although the economy has been due for a recession for years, Donald Trump’s tax cuts and deregulations have staved off the collapse longer than economists predicted.
But the bill always comes due and we’re getting near that time.
If the spending problem isn’t dealt with soon, the only avenues will be excessive inflationary spending, which is a proven catastrophe around the world, or austerity – which would mean default and utter calamity.
Here are some tips to safeguard against the inevitable financial hurdles.
First, it’s a good idea to have some of your money invested in precious metals.
Historically, gold and silver are good bets against inflation and market volatility.
In 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 precisely metals.
Next, don’t be scared of sitting in cash for a while if you don’t see any slam dunk investment opportunities.
Inflation obviously diminishes the value of the dollar.
The average rate of inflation is roughly 3% per year—a good rule of thumb is that prices double every 20 years—which means your investments need to be making at least 4-5% to be worthwhile.
Monetary policy under the Obama administration dropped interest rates to virtually zero in an attempt to spur spending instead of saving.
This means that a savings account is no longer a viable way to grow wealth.
That’s why sitting in cash until you find a good investment opportunity is a good plan.
The liquidity of having some investment cash on hand will permit you to act quickly in the market.
If there’s a market crash, there will almost certainly be good companies on sale.
Also, building a supplemental revenue stream is a smart idea.
The more money you can have flowing in from different areas, the more stable you will be during an economic downturn.
It’s difficult to predict how a collapse will affect the spending habits of both consumers and businesses, so you don’t want to be reliant on one thing.
Hobbies such as blacksmithing or woodworking can turn into profitable side businesses if done well.
Finally, survivalists that homestead will have a distinct edge.
The cost of goods will definitely go up, so the more self-sufficient you are, the better it will be for your pocketbook.
And some goods might become so scarce, they’ll be nearly impossible to get.
Growing your own food is a great avenue to cut spending.
It can also lead to a backup revenue source if there’s a demand.