When considering the type of SHTF scenarios that might occur, few seem more likely than a financial collapse. The world’s economy is so intertwined now, it’s easy to see how a financial crisis could spread quickly around the globe. It already came near to sinking the whole economic ship in 2008.
Some people might think this is an issue that only preppers think about. But that’s not true. Even people who rank among the richest people in the world – and assumedly have more knowledge than most about global finance – have started to prepare for the potential end of society.
Common Prepping Myths
Know the Signs of Financial Collapse
The best way to prepare for a financial collapse is to know well in advance that one is coming. While experts disagree on the details, most will list the following as signs of trouble. These issues don’t definitely mean a financial collapse is on its way. But taken together, they make one much more likely.
- Growing government debt
- Stock markets trading at new highs consistently (this indicates people are taking more risks)
- High unemployment rates (more people not contributing to the economy)
- Unstable government leaders who could make bad decisions that impact the economy
- A rising level of debt (more people paying off debt than buying things and contributing to the economy)
Again, just one or two of these is not necessarily bad news. All of them together create a fertile ground for economic crisis.
Getting Financially Healthy
An all-out collapse might take out everyone. But the most likely outcome involves a financial system crisis that initially hits the most vulnerable the worst. They get pummeled by the results of a financial crisis, which includes widespread unemployment, hyperinflation, and a high increase in crime. Those in a better financial situation will ride the storm out better, insulting themselves from the fallout.
- Get out of debt. Systematically reduce your debt to the lowest amount possible. Make it a priority.
- Stay liquid. High liquidity means having high amounts of cash. In times of trouble, cash is king.
- Emergency fund. Build a cash emergency fund systematically. Never touch it for any reason other than an absolute emergency.
- Cut bills. Get rid of anything you don’t need.
- Increase income. Find a “side hustle” that puts more cash into your pockets.
Even a total collapse favors the wealthy. As mentioned above, some of the richest preppers are quietly buying up property in remote places like New Zealand and building elaborate bunkers to ride out any type of collapse. If you have that kind of money, it’s wise to follow suit. For everyone else, you have to prepare as best you can.
Prepping for Total Collapse
When it comes down to it, concerns about SHTF scenarios often boil down to a collapse in the financial system. It’s up there with nuclear warfare or deadly viruses as a reason why society might teeter over the edge. For those who want to get prepared, these are the places to start.
Top 10 SHTF Supplies
This is a fundamental step that all preppers should take in anticipation of any type of disruption in modern society. It doesn’t take much research to discover that in many countries, people deal with inadequate food supply on a daily basis. It’s best to stay prepared in case that happens here. Any well-stocked food supply should include staples such as beans, rice, wheat, oats, pasta, sugar and dehydrated or freeze-dried foods packaged for long-term storage. They also should include canned goods, boxed mixes, and cereal.
Storage space is often the issue when it comes to food. Many choose basements or remodel and expand food pantries. Some place food in underground shelters (often originally designed for natural disasters).
Medication and Medical Supplies
Always have a plentiful supply of personal medication. Also, you’ll want pain relievers, allergy medicine, cold and flu medication, ointments to disinfect cuts and scrapes, bandages, and other First Aid supplies.
In this category, you want everything that you buy for personal needs, including toilet paper, toothpaste, feminine products, soap, contact solution, etc. Tools also belong on this list, including a sturdy and dependable knife (or two or three).
Another issue to keep in mind is keeping your passport updated or getting one if you don’t have one. Financial collapses usually hit one country worse than others. There may be places to flee if you see the signs. Sometimes bugging out requires bugging out of the country, especially in the midst of a nationwide financial collapse.
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