Planning for the next BIG EMERGENCY!steemCreated with Sketch.

in Project HOPE2 months ago (edited)

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THE BIG EMERGENCY!

I'm not talking about the AC breaking, needing a replacement car or even losing your job temporarily. I'm talking about an economic depression, being permanently disabled, or the coup de gras, premature death.

Hardly anybody ever talks about the big emergencies, and why would they, it rarely happens in any given lifetime or century (depending on where you live), but they do happen.

So how do you plan for, lets say, an economic depression?

  • First, have a lot of capital (money) on hand.
  • Second, have an alternative sustainable income before employment dries up.
  • And 3rd, have NO DEBT!

Obviously, all of these steps have to be planned and executed before a depression hits.

Have a lot of capital (money) on hand.

Two ways you can accumulate capital.

  • Earn more than you spend.
  • And make money with your money by investing.

Capital can also include real estate, making sure your home is paid for, or land, which can be used for useful purposes, like crops, etc... Every single person reading this is in a different financial position, but these rules still apply everywhere. And this kind of capital accumulation takes time, in most cases, years.

Have an alternative sustainable income.

An alternative sustainable income is income that you don't really have to work hard at and it weathers most adverse economic situations. For example: stock dividends, crypto staking, real estate rent, Hive/Steemit rewards, growing food and selling it (need land), etc… Essentially, have your money work for you so you don't have to work as hard (farming is tough though).

Obviously, during a depression, asset prices are cut in half at the very least, so your money won't make as much. But remember, money moves from good to better, no matter what the economic conditions are. It moves to safe places in crisis. It moves to growth places in stagnation. It moves to “stores of value” in devaluation environments. It moves from people's wants (expensive vacations), to people's needs (food and shelter) more often than not.

Move your money to places where people will eventually move their money in the future, therefore you capitalize on the wealth accumulation of the asset.

Have NO DEBT!

Pretty please, with sugar on top and cherries, don't take out debt! Pay for things with cash! I know there are exceptions to the rules, if you're hungry, and you have no money, and that is the only way to eat, put it on credit. But other than that, don’t do it.

DEBT saps future income. People are slaves to debt. Debt is unforgiving. It never goes away unless you pay it off or die. And you still have to pay it off when you lose your job, hence when you are most vulnerable, like during a depression, if you become disabled, or you die and someone else is depending on you, like kids or a spouse. You don't want your kids having to choose between payments on a boat and food on the table.

In Conclusion.

And there you have it; have a lot of capital on hand; have an alternative sustainable income; and have NO DEBT! And do it before the emergency hits, because by the time the emergency gets here, it's too late. You have to have all of these things in place before things go bad.

When did Noah build the Ark? Before it rained. So build your Ark now, because when it rains, you and your family do not want to be stuck without a boat.

Stay frosty people.

50% allocated to ph-fund.

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hello @fijimermaid ,
these are very good tips, for me personally
if i had to describe some tips i would say (have food, medicine and money for a year of living without leaving home) this is what worked for me if you add to that a good connection to the web you will be set.

"have food, medicine and money for a year of living without leaving home"

Wow, I think this is excellent advise! Well said @trabajosdelsiglo, well said.

Hi @fijimermaid
These are indeed important and far-reaching tips. Most people don't think about that. It is the reality, it seems that they forget or do not keep in mind that in the world everything is cyclical, and we may be well and then not so well, you have to prepare.siemore for that difficult times because at some point they will come.

"everything is cyclical"

I love this! Everything IS cyclical. I read once that history is a catalog of human nature. And since human nature hasn't changed much in thousands of years, we can probably expect people to act similar in the future, but with different technology. And if there were bad times before, there will be bad times ahead, AND there will be good times ahead. The Bad and the Good never last forever and one will be replaced with the other given enough time.

Hi @fijimermaid the title of your publication caught my attention and more the analogy that you apply using Noah's ark to refer to the economic welfare that we must have before a possible recession, are good tips that we should all apply. Thank you for your contribution

Thank you for reading :)

a great topic of debate the great consequences that we can suffer with respect to an economic collapse good advice my friend greetings

Thank you thank you :)

Smiles, I haven't actually thought about this before. It's quite weird to think of, but the reality is that it could actually happen. Most of you never imagined something like COVID-19 would happen, it happened. You are right, we should always be prepared.

Thanks for sharing such a nice informative content @fijimermaid

Hello friend, I think these are very good tips, having enough capital is ideal, always thinking about the future should be in our mind. And not to be pessimistic but sometimes things happen that are out of our hands and we must be prepared. Greetings and thanks for those tips.

I like that you brought up pessimism. How can one balance being prepared far harder times and think optimistically about the future?

I want to think more about space exploration; new technologies that make people's lives easier; sound governments that are good stewards to their people; and a closer global community. But I am tempered by reality sometimes. Space exploration turns to space militarization; new technologies can be used to suppress people rather than make their life easier; governments can be predators to the people; and the global community can be partitioned and led to war.

I feel better about myself when I think about the good rather than the bad. But sometimes thinking about the bad, makes the bad less painful in the future, because you take great pains to avoid it.

We need to keep small amount of fundas an emergency that will help in future. As we can economy depression can take place any time and this time it will be more aggressively then the last one. Keep your money safe for future.

Well said, well said :)

When we learn to save ahead for emergencies it saves us from a lot of embarrassment and out holes.

Totally agree!