To start, I am not trying to be an alarmist here, but I remember 2008/2009 pretty well, and how tired I was trying to work two jobs to keep my head above water during the global melt down of the banking system. Canada got through it pretty well due to our conservative and regulated banks, but we still felt that pinch and many lost good paying jobs, and it pretty much decimated our manufacturing industry.
I was 25 and a newly minted real estate agent, just hitting my stride and I was totally unprepared with not much savings or any real back up plan. I ate a lot of spaghetti with dented tins of cheap sauce that I often shared with the mice living in my apartment. It was….. character building, to say the least.
I am no financial expert, but I do read the news, and there are some pretty alarming scenarios happening right now on planet earth, and we should at least consider when and especially, how to prepare for the economic collapse. It is likely that an event like this will happen again, not only in our lifetime, but in the not so distant future. Just think about how fragile this global economy really is. One domino falls, and they all come down.
Have We Really Recovered from the Great Crash of 2008?
7 years after the big crash, and the Canadian national household debt is higher than ever, the mining industry has taken a pretty long nap, and now the price of oil floating at about half it was a year ago. Not to mention the crazy nose dive the Shanghai Stock Exchange has taken over the last week, and Greece with one foot out of the eurozone. We are walking a pretty fine line here, and some experts have been warning us for sometime that there are storm clouds ahead.
Was anyone else wondering just what happened on July 7th, 2015 when the NYSE had a power outage and stopped trading for a couple of hours? Conveniently around the same time American Airlines had an “internal glitch” that grounded all flights for over an hour? There was also an outage of about 2500 homes in Washington D.C happening that day too.
Was it a coincidence? Or was it a terrorist attack, or some black hat hacker come out to wreak a little havoc? We probably will never know, but it just goes to show how vulnerable we can be if a devious plan is executed or an over inflated bubble finally decides to burst.
What’s Your Contingency Plan?
Who knows what really happened on July 7th, or if the Eurozone is about to lose a member, or China will continue it’s downward spiral, but it just goes to show that there is more way to skin a cat, or in this case, an economy. It is very important that you have a contingency plan in place should one of these scenarios should develop into an economic disaster. Hackers, bursting bubbles, falling stock prices, whatever it is, you need to be prepared to ride out the storm and come out the other side intact.
How Can We Be Prepared?
OK, now you either think I am crazy, or you are cracking open your piggy bank to see how many pennies you can rub together. All joking aside, the issues I am writing about are actually happening right now, and it is important to recognize that emergencies and disasters aren’t just hurricanes, or super viruses, but come in the economic variety too.
Again, looking at Greece, amid these tense austerity and debt relief negotiations, the banks are closed and the ATMs are dispensing no cash in order to stem the flow of money out of the system. What are people going to do, and how will they buy food if all their money is inaccessible? Regardless of which side of the argument you side with in regards to austerity in Greece, this is one example of a scenario where your emergency cash stash is going to help you through until things ease up.
The banks and ATMs may be back on in a matter of days or weeks, but the aftermath of such an event will be far reaching, and potentially long lasting. Before you buy you swipe that debit or credit card on a cute pair of shoes, or a 50″ LCD, consider first how much money you have set aside in your emergency fund. Having at a minimum of 3 months living expenses in your savings account for such an occasion is important. Having 6 months is better. Stockpiling food, water and medicines is important in any disaster, but cash is King, and you should have some set aside to complete your emergency rations.
What’s your plan when you can’t access your cash?
The Urban Survivalist