17 Aug 2015
There is a lot of talk about the possibilities of a financial collapse. There are a lot of indicators that a financial collapse is possible. In my humble opinion, I believe a financial collapse is probable, but this blog isn’t about the indicators of what leads me to that opinion. No, today I want to talk about how you can prepare for and adjust your lifestyle in case of a financial collapse.
Live Like You Lost Your Job
First, rather than focusing a global or regional collapse, let me bring this closer to home. If you, your spouse or both lose your job, you have now entered a form of a financial collapse. Your regular form of income has stopped so you have to adjust and adjust fast.
I believe it is best to live life in preparation for a loss of income or a large reduction of income. Always live below your means. Life is very short, filling it with stuff, that costs money adds to the stress of having to make a certain income. Instead, live basic and simple lives and focus on what really matters, your family and relationships.
Invest In Relationships
It may sound simple, but it is very hard for some people. Invest in relationships with others. Instead of spending money by going to the movies, go for a walk with the family, your kids or friends. It doesn’t cost money for one, for another it is an investment that will last a lifetime as opposed to a trip to the movies which will only last for a day or two or until the next movie release.
Get used to spending time with the family in ways that does not cost money. I realize it is much easier to get home from work and take the family out to dinner, and once in a while that is a nice treat, but let’s face it, dinner out with the family isn’t cheap. Dinner home with the family is much cheaper and you can focus on each other.
Save Your Change
When you do spend cash and you get back change…save it. Put it in a jar and use it as a in home savings account. It doesn’t seem like much and it is easy to set aside and not miss change. It could add up to $300 a year per adult of spending. If tough times that could come in very handy.
Each time you go to the grocery store, buy something extra for each person in the family. An extra can of soup, extra bag of rice, just something extra times the people in your family. You will be surprised how quickly you will build up a good extra supply of food. I thing you should always have at least one month worth of food in the house, preferably three months. Now that is three extra meals for each person for a month to three months.
Many of us don’t realize how fast food goes, primarily because we eat out a lot and have easy access to the grocery store. When we need something, we just run to the store. Well, if money gets tight, you may not have extra to just run to the store when you want. So why not stock up a little bit now while you can?
Extra Work On The Side
Always have a second or third income source. Be creative, some of you create great crafts that you could sell. Some are able to sew for others as a source of income. Think of some kind of skill set that you could sell if there is a financial collapse that is bigger than your household?
Start a blog, no it is not a get rich quick concept, but slow and steady over the years it will continually bring in more and more each month.
The time to think about it or implement a form of extra income is now, not after you the financial strain occurs.
Plan, Plan, Plan
No one knows what will happen to your own personal job situation. No one knows what is really going to happen with the overall financial global market. One thing we all do know, change will happen sooner or later. Financial strain will hit all of us sooner or later. Don’t wait for it to happen. Plan for it now.
Cut Back Now
Begin to cut back expenses now. Here are just things to begin to cut back on.
- Cut cable – A great replacement is Netflix, Hulu, Amazon Prime. Better yet, cut back TV time and spend time with the family.
- Stop getting the paper – yes, there are some people who still get a newspaper, an expense that could be eliminated.
- Look into reduced cell phone plans. – The name brand cell carriers are high priced. Check with Cricket, Total Wireless and others for cheaper plans that may offer more services for less.
- Land Line – Many still have a land line as well as cell phones. Do you still need a land line?
- Buy extra food – I mentioned it above, when you go shopping, buy something extra for each person in the household, that includes the pets. Extra food adds up and will be handy if you find you don’t have a pay check for a month or more.
- Additional Income – Think of things you can do to bring in extra income now, when things are good. Maybe sell extra stuff in the house on Ebay, handy man, or woman, tasks for others, sewing or seamstress jobs. Something that will take your talents that you can make money from.
Do you think there are tough financial times ahead? What are you doing to get ready for these times?