This is Part 4 of an article series which takes a look at a 7 steps to lift yourself out of the recession, no matter how deep it gets.
Very few will be able to escape the inflation, lower wages, dropping home values and loss of jobs.
So far these things have already affected 30-50% of the population and unemployment at reached 10%, but they are likely to eventually affect everyone.
If you have not yet experienced these things in your personal finances, you soon will.
That being said, the question is what are you going to do about it? Are you going to wait until you are personally affected before making any lifestyle changes or are you going to start making changes in preparation for these things?
Much of the people that have yet to be affected are still hoping for the best and have not changing anything - thinking that the recession is bottoming out and therefore they have survived without having to change their lifestyle.
What I’m saying is that almost no one will escape this recession, because it is not bottoming out like the politicians are telling us. Instead, their policies are going to lead to a currency crisis in which the dollar could lose 50-60-70 or even 90% of its current value.
The few that will escape the recession will be very wealthy American’s who have put the majority of their wealth into foreign assets and inflation protected investments.
These few that retain their wealth will be the only ones left with real wealth that could be used to fund new businesses. They will become the leaders that form the foundation of rebuilding the economy after the collapse is complete.
But before we start rebuilding the economy, the entire phony economy 2.0 has got to dissolve and that will eventually affect everyone. The best way to prepare is to live a frugal lifestyle. In fact recessions highlight the advantages of living a frugal lifestyle.
Frugal is being wise with your money and not wasting it on things of little value.
Converting to a frugal lifestyle is not an easy task. The conversion process includes life altering decisions that are very difficult to make and even more difficult to maintain.
A frugal lifestyle is one of the best solutions to a recession and perhaps the most patriotic thing to do. The frugal are the last to ask for bailouts or handouts or government jobs or any type of government help. The frugal have the courage to face the recession.
The frugal have the courage that the government leaders cannot seem to find. The frugal are the only ones that seem to understand that debt is something to avoid, not embrace.
Here is a list of 25 things to consider cutting back on as a consumer
The search for practical ways to cut back on living expences is going to become the most valuable information in print and on the net.
Here are some practical steps to take to begin preparing for the deepening recession;
- Reduce expenses
- Get out of consumer debt
- Get another job, maybe two
- Send you teenagers to work, cut their allowance
- Vote out the bad economist that support socialism and welfare
- Start setting financial goals
- Learn how to budget
- Learn how to garden
- Teach your neighbors what you learned
- Go back to church, stop trusting government, start trusting God again
These are the steps that each family will eventually need to take and the sooner the better.
In Part 5 of this article series, I’m going to talk about what the future will look like and how you to see yourself being successful after the phony economy 2.0 collapses and a new economy emerges’ based on a high savings rate and an increasing demand for export production.