How to prepare for economic crisis

[xapis]

Maybe I'm naïve, but it seems counterintuitive to me to believe in the ultimate devaluation of our currency and, at the same time, to encourage people to pay off debt now and hoard up cash. I understand having an emergency fund on hand in the interim. But shouldn't we be most concerned with "hoarding" tangible commodities—primarily a substantial food/water supply to sustain our families through what seems to be an imminent crisis of widespread economic demise? Then, if our personal finances permit, converting our savings into real assets like gold, silver, etc.?

Help me out here. I think this is about as personal and practical as we can get with applying our ideology… at least it is for a guy like me who lives from paycheck to paycheck trying to support my family (without latching on to the government teat) as the standard of living plummets.

[sevin]

Maybe I'm naïve, but it seems counterintuitive to me to believe in the ultimate devaluation of our currency and, at the same time, to encourage people to pay off debt now and hoard up cash.

I've had the same thought. At one point, I was even considering using up my credit cards to buy PM's and supplies. But one never knows how things will play out. It could still be a long time before hyperinflation occurs, or they could jack interest rates up to 25%. Who knows?

I'm focusing on paying off one of my student loans which has an adjustable interest rate. On the other I'm paying the minimum. Any other extra money I have goes to supplies.

[TonySutton]

Paying off secured debts is good. I am not so sure that paying off unsecured loans matter as much. This is a gamblers choice because we do not know what the future holds. I can say for myself I have saved an emergency fund that I keep in cash. I have food stores and filtration for water. I also purchased 5 gallon gas cans which are currently empty but could be filled up quickly if things start to erode more. I am not rich enough to own gold but I do have some silver and have purchased other commodity items with long shelf lives, like medical supplies, sewing supplies and cloth, tobacco, candles, matches and oil.

[Original_Intent]

If you store gas, just be aware that it degrades quickly. It is still probably somewhat useable after 6 months, I am not sure exactly what happens. If you have things that run on diesel, it stores much better.

I am completely in agreement with the OP. I am preparing for rough times witht he asumption that I will bea ble to get by without making a house payment for at least a year or so without being evicted, and if things are bad enough, it could be a lot longer.

Food, water, heating source, other necessities, and a means of defense all come before PMs and cash.

Also having a plan or the means to grow your own food and or manufacture something of use (Capital!) is a really good idea.

[MsDoodahs]

Cultivate a positive attitude.

This is essential and something that worries me because we sometimes tend to be kinda negative around here.

[xapis]

A good reminder, MsDoodahs... it's hard sometimes when considering my own personal finances and the direction of the country.

Thankfully, my real hope is other-worldly.

Good responses so far. Keep 'em coming.

[tmosley]

Ex post facto laws seem to be in vogue these days, so paying off debt is a good way to try to dodge that train. One can also take the tack of joining the herd, which is unable to pay its debts, and defaulting like crazy, and hope that if that train is indeed coming on this track, that the bulk of all the people in the way will stop it before it squishes you.

I, personally, took the latter path, especially after learning about the fraud inherent in our credit card system.

But yes, a supply of food and steady access to a non-municipal source of water is definitely a good thing, as is a supply of guns and ammo, and some gold and silver. Some medical supplies (esp bandages, topical antibiotics, astringents, and hemostatics) are good to keep around as well.

[Zeeder]

[QUOTE=Original_Intent;2754845]If you store gas, just be aware that it degrades quickly. It is still probably somewhat useable after 6 months, I am not sure exactly what happens. If you have things that run on diesel, it stores much better.

QUOTE]

I used stabil to store gas last year. After one year the gas still ran my small generator and my lawnmower. I always keep a couple of gallons to run the freezer in case of a major power outage. And it would also be enought to get me to my grandparents(they have land and a pond).
So if you want to store gas. Store as much as you want with a product extender. The next year use the gas in your car, lawn mower, or whatever to not waste it.

I do it like food storage. Rotate what you use. You'll always have some usable gas.

[Mister Grieves]

I've been able to do a little in regards to preparing for an economic breakdown as has been suggested by many intelligent folks here and by what my own common sense tells me may come in handy. However, another thing I do, perhaps the most important, even, is keep myself in good physical condition. While I don't always eat the healthiest, I try to do better, even if it means not eating that extra piece of pizza or eating celery with my cheeseburger instead of fries. I also believe working out, for both cardio and strength, is very important as once this does happen, you'll undoubtedly be having to rely on physical prowess more so than now. Whether that be by earning or protecting assets.

[TonySutton]

oh, I totally forgot ammo. A good .22 rifle is a good supper gun and rounds are cheap. You will probably want something bigger for home protection

[MsDoodahs]

I do it like food storage. Rotate what you use. You'll always have some usable gas.

Yes definitely rotate the supplies.

Also - I believe in storing what we eat NOW rather than storing specialty supplies that we don't eat. Don't forget comfort foods, either!

In case things get to the point you have to try and barter for goods you need, store small things. (Smaller is better if you have limited space.) Fish hooks...whet stones...sewing needles...and something I've added to my "maybe I could trade it if I had to" shelf: small bottles of vanilla flavoring. These things aren't expensive, they take up very little space...

[xapis]

Thanks to everyone here for these answers. You've all been very helpful. I'm looking at setting up a small greenhouse and will be buying the materials for it today. Another plus (which we already have) is a canner. Canning is better than freezing in case of an extended power outage.

[Pennsylvania]

as far as stocking up on foods I lean towards these three: olive oil, sardines, and honey. Olive oil takes up very little space for what it sells for and is loaded with calories (a good thing in a survival situation). One cup of it falls just slightly under a full day's calories. Sardines are health in a can (omega 3s, significant HDL, iron, lots of protein), also can contain olive oil, and have a decent shelf life. Honey is high in sucrose and fructose and never spoils. It was found in ancient Egyptian tombs, still edible.

ETA: I wouldn't skimp on canned sauerkraut either as it is high in vitamin C. It was actually used historically to prevent scurvy in the British Navy: http://en.wikipedia.org/wiki/Sauerkraut#Health_benefits

[Up The Deise]

Alocohol and tobacco are also good things to stock up on. People will always traded for those.

[FunkBuddha]

Check out The Survival Podcast. Jack has some great information in the roughly 450 podcasts he has done, plus he is pretty entertaining. Use the tag cloud on the right to find the podcasts on food storage, investing and sustainability.