Financial problems are one of the main stressors in life.
Economic forces can push people into miserable situations.
Here are some ways to survive a personal financial disaster.
The chances of an economic collapse are high.
The only unknowns are how bad the collapse will be and when it will strike.
Decades of big-government spending and unsound monetary policy have put people in these situations.
The presidential economic game of musical chairs will likely leave Donald Trump standing, even though his policies have staved off disaster longer than experts imagined.
Liberals in the media are openly calling for a recession just to stick it to Trump, which is disgusting.
Real lives are damaged by economic collapses.
For example, the largest fund in the stock market is the California teachers’ pension.
Those are everyday people’s retirement savings that could be slashed while liberal elites rejoice.
The fallout from economic collapse can be truly devastating on many levels.
However, there are ways you can weather the storm of a collapse.
First, make sure you have an emergency fund to handle unforeseen events.
Most Americans have been so encouraged to spend and borrow, they can’t even afford a $1,000 emergency.
You should have at minimum $1,000 cash on hand.
Optimally, it would be better to have at least six months worth of expenses stashed away.
A downturn could lead to sudden unemployment.
Next, try to eliminate debt.
Interest rate hikes could spell disaster on an adjustment rate mortgage.
Balloon payments caused many subprime borrowers to walk away from homes they couldn’t afford during the 2008 crash.
Debt can be a crusher in the midst of a collapse.
Also, limit your expenses.
During a recession, you may have to tighten your budget.
Your budget should be a specific accounting of all your monthly expenditures and you should be directing every cent.
That means you shouldn’t just tally your expenses.
Budget for everything: food, utilities, savings, etc…
There shouldn’t be any surprises at the end of the month because you directed all of your money to a planned destination.
Furthermore, if you’re an investor, don’t panic.
In fact, bear markets are often the best times to buy because you can find good companies on sale.
If you’re a bit further away from retirement age and can ride the wave of the market, don’t be afraid to buy more.
Over a 15-20 year average, the market generally yields 8% returns.
If you can stomach a downturn, a recovery should see your portfolio rise to greater heights.
Finally, look for alternative sources of revenue.
Side hustles are a great way to earn extra cash.
Some people can make extra money driving for ride-share companies, homesteading, antiquing, blogging, and many other endeavors.
If you have a hobby that you’ve been cultivating, look for ways to monetize it.
There could be a market out there for your services that you’re not even aware of.
If you follow these guidelines and remain calm, you can emerge from a financial collapse relatively unscathed.