How can you prepare for an economic crisis?

By far the most important thing is to invest in yourself.Make sure you have the best and preferably varied professional qualifications that are feasible for you.

Try to set your life to be flexible:

Flexible in your communication possibilities.If your entire access to your network is stuck in a single system, with no physical personal backup, or even in a single device or just in the cloud, you’re extremely vulnerable.

Flexible in Where you live, both in terms of region and country.That means that at least the English good mastering is of enormous importance. But every economically important language increases your flexibility and thus your ability to evade the consequences of an economic crisis.

Flexible in which your material possessions are fixed.Not all at one bank in one country. Not all in one house or one company. Not everything in stocks. Make sure your finances are available in different currencies so that a collapse of the dollar or the euro does not immediately involve the end of your financial opportunities.

Flexible in your network.Not just people from one social network on one Terein. Try to combine academic and professional networks. Even hobbies can give you access to important information and people.

Flexible in practical things if you have medication stock and your recipes.Make sure that you have a good overview of what you need in English and English, and that you always have a buffer that you use and complement.

You never know how a crisis manifests itself.If you have a lot of savings and low debts, hyperinflation can ruin you. However, if you have a reasonably good job and a lot of debts like a top mortgage then you are a bacon buyer at hyperinflation.

If you have a lot of shares then a stock market can throw some soot into the food.If you have bonds then the underlying company can go bankrupt. Everywhere lurking dangers.

The best you can invest your money spread.Make sure you have cash and some gold. Make sure you have shares in companies that have been listed for a very long time, buy bonds with an AA or AAA rating and buy your own home without too much mortgage.

Also, make sure you have a profession that always has a demand for it.

There are five areas that are eligible to prepare for a financial crisis.

Income

Basic

Savings

Financial liabilities

People

Consider “preparation” as “insurance”.It costs money and you hope you don’t have to make use of the insurance, i.e. the money you paid is lost.

Income: Make sure you can do something better than the average person.An excellent salesman or handyman deserves his bread anytime and anywhere. But you should be better than average in what you do. “Excellent” is the word that best describes what I aim for.

Basic needs: Home, food, water.A modest house for sale, a stock of food with good warehouse management, your own water inventory.

I know someone who used a garage in a tourist area as a holiday home.Do you understand what I mean in the context of our topic? Nothing against riant living, but take care of insurance.

Savings: Only save an emergency fund in DD local currency.The rest should be in stuff that more or less retains their purchasing power. Think of that garage and to precious metal.

On this I placed the same extensive answer many times on Quora.

Financial liabilities: the smaller your financial commitments, the less vulnerable you are.Be debts free or debt-poor.

People: get people to be happy.You need them more in a crisis than otherwise. Always complain that it is financially bad. An old woman in years 1970, when I was a teenager drew my attention to it. The farmers of that time always complained that the harvest was nothing, but they drove in the most expensive cars. Dealing with Messines is my weakest link, so get off on your own judgement or follow the counsel of others please.

That is, of course, difficult.It is better to have savings than debts. Buying gold is a stable investment.

Leave a Reply