Tips for surviving a depression!
First of all…
I DON’T think that it is a foregone conclusion that our country is headed for a “depression.” A depression in economic terms is loosely defined as a countries Gross Domestic Product (GDP) dropping by about 10% or more in a given year. WHAT I MEAN by GDP is the total value of all goods, services, and investments spend by EVERYONE…individuals, businesses, and governments…in a given year. The GDP of the Untied States of American as just under $14 Trillion last year.
HERE IS WHY I’m Concerned…
Our country has survived economic downturns in the past, many times in fact. This one is different though in my opinion. The reason is this: Individual Americans and our Federal Government has a CRUSHING AMOUNT OF DEBT that is growing bigger and bigger every day. The interest alone that we must someday pay on our national debt is growing rapidly and is currently estimated at $45,000 PER SECOND!!!
I read recently that 80% of Americans would potentially be bankrupt and homeless if they simply missed 2 PAYCHECKS!
The reason for this is because of the huge mortgages, auto loans, failed business loans, student loans, credit card loans, etc. that we are all required to make huge payments on each month. AND ALMOST NONE OF US HAS AN EMERGENCY FUND that would last more than two months.
SO WHAT CAN YOU DO?
- Stop spending your money like the village idiot! American currently save less than 2% of their yearly earnings!
- Quit going to the mall every time you are bored!
- Build an emergency fund! Do this with the dollars you are not blowing at the mall.
- Buy JUNK SILVER COINS. Do this with about 25% of your emergency fund. Silver has proved to be a good store of value for thousands of years.
- Get rid of unnecessary debt. And do this as soon as possible. If you just bought an ATV and took a 12% interest loan…sell that sucker, and get that debt off your back!
- But conserve cash too! It can be unwise in uncertain times to spend every penny of cash you have to par down your debt. This is where the concept of EMERGENCY FUND is important!
- Stock up on some food with very long shelf life! I’m not trying to alarm you, but if you understand the gravity of the numbers I’m just shared with you, some extra food in the basement seems attractive.
- Keep having faith and working hard! With all the doom and gloom out there, I still believe in power much bigger than ourselves and our economic worries. Keep focused on ALL THE GOOD BLESSINGS in your life, because they are abundant, even through our struggles. Just look at the birds outside, they don’t seem to worry where their next meal will come from…and aren’t us people more important than the birds? I believe we are!
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February 15th, 2009 at 6:35 pm
Very well said.
Another one of my biggest concern is other country around the world starts to lose faith in the mighty US Dollar. As as result, all the money printing will lead to inflation at a time when the economy and ordinary citizens are already struggling.
Thus it would be a very good idea to diversify the emergency fund instead of holding cash. (I like the silver coins idea btw)
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Almost Millionaire Reply:
February 18th, 2009 at 12:46 pm
@plin
THAT IS SPOT ON! I agree, the printing of paper could really drag us down if not carefully managed.
Almost Millionaires last blog post..Tips for surviving a depression!
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February 16th, 2009 at 5:22 am
If only people realized that saving money is making money. Although governments want people to spend money to generate growth, this can only happen if people have money to spend, and if the only way you can afford something is by using the credit card, don’t do it.
Try and consolidate your loans into one that has a lower rate. Get rid of your credit cards if you don’t know how to control them. Don’t eat out. Buy up on specials. Honestly, there are so many ways to save money, you just have to commit yourself.
Sires last blog post..Changing Your Lifestyle Doesn’t Have To be Painful
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Almost Millionaire Reply:
February 17th, 2009 at 10:32 pm
@ Sire
You are right on. It seems like really poor planning by our leaders to try to get us to take on more business and personal debt to stimilate economic activity. We are just passing the buck for future generations.
Almost Millionaires last blog post..Tips for surviving a depression!
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Sire Reply:
February 18th, 2009 at 4:24 am
I also think that the current policy by a lot of leaders to throw money at the public to generate growth is the wrong idea for several reasons.
1. Not everybody will spend it as a lot will be used to pay off loans
2. Short term option, no major long term effects.
3. Some people will waste the money on silly things like pokies, drugs and shit.
It’s going to make all those people who get it happy, but even that is short lived as the money won’t last long.
Sires last blog post..Woopra Analytics Providing Real Time Stats
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February 16th, 2009 at 6:14 pm
This is a fantastic post. A very useful post. I have dugg the post.
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February 17th, 2009 at 2:10 am
I like your post but I think you’ve missed something. The point isn’t to ’survive’ or ‘weather the storm’, as your post implies. The point is to prosper.
Along with everything you’ve said, I would add that in a recession, you have to commit your mind to the FACT that you’ll have to work harder than normal to achieve the results you’ve grown accustomed to, and even harder than that to reach your goals.
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February 17th, 2009 at 7:07 am
My favorite is “Keep having faith and working hard!” I also like @Sire I like “consolidate your loans into one that has a lower rate. Get rid of your credit cards if you don’t know how to control them.” Great tips.
Thank you,
Giovanna Garcia
Imperfect Action is better than No Action
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Almost Millionaire Reply:
February 17th, 2009 at 10:29 pm
@Giovanna That one is my favorite too! Faith and hard work are actions I have the most control over…
Almost Millionaires last blog post..Tips for surviving a depression!
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Sire Reply:
February 18th, 2009 at 4:26 am
Thanks Giovanna, I like you too
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February 17th, 2009 at 8:56 am
Your post worked for me. I read it the whole through! thanks.!!
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February 17th, 2009 at 4:41 pm
I’m definitely planning and preparing just in case. My dad mentioned junk silver coins the other day and we plan to get a stash soon, if possible.
Building up extra income sources is also important, in case of job loss.
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Almost Millionaire Reply:
February 17th, 2009 at 10:30 pm
@Maria
Planning and preparing “just in case” is absolutly the right thing to do. You just don’t know what the future holds, we are in unchartered waters economically right now.
Almost Millionaires last blog post..Tips for surviving a depression!
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February 17th, 2009 at 11:26 pm
Hi. Great info. I follow most of this list except saving money and that’s simply because I have zero dollars to save
Christina Bledsoes last blog post..Celebrity Birthdays For February 17th, 2008
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Almost Millionaire Reply:
February 17th, 2009 at 11:49 pm
Thanks Christina, I enjoy your blog too. I’m an entertainment junkie!
Almost Millionaires last blog post..Tips for surviving a depression!
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February 18th, 2009 at 1:42 pm
Some great tips here. I think the biggest point to learn from this is that people need to STOP spending money they don’t have. We are in a consumer-driven society, which is starting to bite us in the butt. If you don’t have the money for that nice of a car, maybe you should try and find something a little more affordable. You need to know your limits and live within them!
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Almost Millionaire Reply:
February 18th, 2009 at 5:59 pm
Preach on my friend! You are absolutly right. I look around my garage and driveway and ask myself…when Did I believe that my wife and I needed 4 NEW VEHICLES? Stupid! I am defiantly spending MUCH more wisely in the future!
Almost Millionaires last blog post..Tips for surviving a depression!
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February 19th, 2009 at 2:00 am
Are you stocking up on Ammo?
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February 22nd, 2009 at 9:06 pm
As a Newbie, I am always searching online for articles that can help me. Thank you
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February 23rd, 2009 at 12:48 am
Re: Brad’s post above, LOL. There was a couple of articles out in a local paper the other day about the growing groups of “doomers” many of whom are also survivalists. I agree with survivalists’ attitudes and their concerns are well-founded, but like Mike said above we also want to prosper, not just survive.
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Almost Millionaire Reply:
February 23rd, 2009 at 1:52 pm
I’ve got a close friend who is not a doomer, but is definatly a survivalists. I joke with him alot, but the bottom line is that he is doing what he believes he should to support and protect his family. I applaud him for that.
Almost Millionaires last blog post..Tips for surviving a depression!
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February 23rd, 2009 at 5:23 am
WOW… Thank you sooo much for these tips…. It is indeed very helpful
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February 23rd, 2009 at 7:54 am
This is a good post that will hopefully open some eyes. I’d be curious to know what you define as an adequate “emergency fund”.
My financial situation is presently pretty hopeless, but we can always make efforts to spend our money more wisely. I like your suggestion about buying silver coins. What is a good place to do that?
Trey – Swollen Thumb Entertainments last blog post..The Definition of “Artist”
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Almost Millionaire Reply:
February 23rd, 2009 at 1:54 pm
Trey,
You should be able to find a local coin shop in your home town. Ask them about “junk silver” and hopefully they won’t charge you over the spot price plus $1.00 or something like that.
A true emergency fund is generally 6 months of fixed expenses, but just start somewhere and do the best you can.
Good luck!
Almost Millionaires last blog post..Tips for surviving a depression!
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Make Money Online Tips Reply:
February 23rd, 2009 at 5:37 pm
Thats a real good idea. You get those piggy banks everywhere.
Make Money Online Tipss last blog post..How To Get Top Ranking In Google
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Cimarron Layne Reply:
September 21st, 2010 at 8:16 am
The best silver bullion coin purchase site I’ve found is XagNet Go to: http://vur.me/LayneUnltd/XAG
It has three options:
1. You can join free and order coins 1 or more at a time whenever you want. Not only U.S. coins, but other country’s coins as well.
2. You can become a partner (monthly fee for a “done for you” reseller’s website). You can buy as you like and get a commission on the buyers who join through your website. You can take your commissions in cash or silver coins.
3. You can go on auto-ship and have a standing order for a coin or more sent to you on a monthly basis.
Easy way to build up your silver ownership and a decent income opportunity too.
There are several other businesses that deal in numismatic coins (both silver and gold), but Xag is the least expensive I’ve found — sells coins very near spot price of silver plus mint fees and shipping.
The main website is not as fully automated as I’d like, but so far I am very happy with Xag’s service.
Joy and abundance,
Cimarron Layne
P.S. I’ve been collecting silver coins since 1987 when silver was at $6.00 an ounce. I was buying uncirculated silver eagles for $8.00. Today they are worth around $25.00 each. Sure beats the mutual funds and stocks I have bought.
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February 24th, 2009 at 1:50 pm
Dogg,
Why you always worried about the economy? Just drink coffee and be happy!
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February 25th, 2009 at 3:37 pm
Some great tips. I have actually been doing most of them outside of buying silver coins and stocking up on food…
The reason for not stocking up on food? Well, I live in an apartment so no room. That’ll change in 3 months.
I have an emergency fund for at least a year.
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February 26th, 2009 at 2:25 am
I sure hope it doesn’t get to the point of having to stock up on food – but I get your point. I am also extremely concerned about our future and what is going to happen to this country.
pfincomes last blog post..Peer to Peer Loan Status – February (2009)
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February 27th, 2009 at 4:25 am
I strongly believe in keeping an emergency fund at all times, even when we’re not in a recession. It’s just useful to have just in case something happens. I do think people spend too much money though without watching what they are buying.
Funny Quotess last blog post..If I Were a Bro
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March 6th, 2009 at 12:41 am
I’m convinced, I hear ya. I’ll get the emergency fund going right away.
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March 11th, 2009 at 6:28 pm
Hello Guru, what enticed you to post an article. This article was extremely interesting, especially since I was searching for thoughts on this subject last Thursday.
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June 10th, 2009 at 10:16 pm
I have the view that depression is a disease which comes from total identification with one’s thoughts and emotions and have found teachings like that of Eckhart Tolle to help me recover. What do you think?
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Leigh Reply:
December 11th, 2009 at 8:17 pm
I have found the teachings of Christ in the New Testament a guide to surviving anything and NEVER losing hope, no matter what happens. How does anyone even want to get up in the morning and face anything, good or bad, if this is all there is? The Cross changed all of that and offers the only existing belief that leads to Heaven in eternity because no other belief has a Savior that paid the price of salvation. Also, Christ’s teaching also confirm that we live within our means, share, barter, and help others in distress.
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July 10th, 2009 at 7:10 am
Unbelievable!
Thank you!
And I just found an interesting post, http://pie-ing.blogspot.com/
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July 10th, 2009 at 3:40 pm
Unbelievable!
Thank you!
And I just found an interesting post, http://pie-ing.blogspot.com/
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October 9th, 2009 at 12:48 am
This is really solid advice regardless of whether we fall into a depression or not. Overstretching ourselves financially is what got us into this mess.
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November 3rd, 2009 at 10:38 pm
A loan modification may or may not have a negative impact to your credit report. You definitely will have a negative impact to your credit if you enter into a trial loan modification, as you will be paying less then what you owe on your original mortgage. Not all loan modifications put you as the homeowner directly into a trial loan modification. Also, your credit report would reflect that you are in a trial loan modification.
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November 10th, 2009 at 12:32 pm
great information thank you
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January 30th, 2010 at 10:58 pm
It is funny that you should mention food storage. I was just telling my husband that I would rather have $1000 worth of food in my pantry than $1000 in the bank. Of course it helps to have both
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April 9th, 2010 at 6:59 am
I have to say, that I could not agree with you in 100%, but it?s just my opinion, which could possibly be wrong….
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April 13th, 2010 at 12:05 am
There are a couple good barter / trade sites out there. I use CL and Baarter.com – http://baarter.com
Check ‘em out. WIth this economy, it’s definitely worth taking a look to see if you can swap something instead of paying for it.
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July 9th, 2010 at 6:38 am
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