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5 Ways to Prepare for an Economic Depression

Economic Depression

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The world has increasingly become a dangerous place. Whether it’s growing geopolitical tensions, trade disputes, social unrest, or famine it seems like the relative stability that has existed in the world for the last seventy years has rapidly decayed.

While the next Great Depression is without a doubt inevitable, a more imminent threat is a family’s lack of preparedness. A lack of readiness with food supply, monetary metals, or travel plans could spell disaster when entering and enduring periods of economic hardship.

In this article, we will give you the 5 Best Ways to Prepare for an Economic Depression.

Factors that lead to Major Economic Depressions

small business farmer standing alone
A small local farmer contemplates his future

Since the days of the Romans, central governments have had a long history of attempting to control their population through legislative coercion. Today, a prominent strategy used by governments is disproportionately targeting small family businesses with crippling policies that favor large corporations.

As seen in a court case against the State of Oregon, small businesses are battling against their governments to maintain a fair marketplace and give consumers free choice. Crippling regulation that is being enacted in the State of Oregon, for example, is just one of many across the United States that are aimed at making it economically impossible for small and community-based businesses to operate profitably.

Many citizens would argue that this is a conscious attempt at pushing consumers into the hands of large national corporations, therefore, consolidating the majority of the productive capacity of the economy into entities that State and Federal bureaucracy can more easily control.

The unintended consequences of such moves, however, create disproportionate risks, and could send the country into severe depression should these large companies experience major disruptions, such as cyber attacks or supply-chain fractures.

How to prepare before an Economic Depression

1) Purchase today what you will need in 6-12 months

One of the major criticisms about prepping for an economic downturn is that the majority of people cannot financially afford to make large investments in things such as bug-out vehicles or gold coins. 

The result of this is that many folks choose not to prepare at all. However, not doing anything is the worst mistake a family can make, because even small plans over time can compound and lead to a substantial readiness position.

With most people getting a paycheck at least every two weeks, make the decision to allocate a portion of your spending for purchasing what you will ultimately need 6-12 months from now. For example, if you regularly purchase long-shelf life goods such as toilet paper or bath soap, with each paycheck, start building up enough storage of these products to last you 6-12 months into the future.

Once you meet this benchmark, simply cycle through your existing supply while always replenishing your reserves back to the 6-12 months of on-hand goods. 

This means pulling one item from inventory for use and then purchasing the same item to put back into storage. Implement this strategy across all essential goods you require. If you don’t have space in your home consider renting third-party storage.

2) Obtain gold and silver coins

Gold has been used as a medium of exchange and currency since 600 BC. Until President Richard Nixon took the US off the gold standard in 1971 the metal was the official backing of the US Dollar. Prior to this time, dollars were exchangeable for physical gold bullion. Since then, the US and other countries have engaged in reckless spending, exploding budget deficits, and rising inflation.

A common theme during a Depression is the debasement of local currencies. This means that a currency such as the US Dollar, British Pound, or Japanese Yen can lose substantial value over time, purchasing fewer goods and services today than it did the day prior.

While we cannot formally give financial advice, history suggests that gold and silver coins have functioned as a means of preserving wealth during economic downturns. Having some of both on hand prior to a Depression could prove to be a wise decision for not only wealth preservation but also as a currency in barter and trade.

3) Invest in your food supply

When the economy crashes many local and national food producers will go out of business, fundamentally restricting the supply of available goods and services. Companies that are able to remain operational during this time will likely have to hike their prices dramatically in order to meet demand.

On the other hand, while the prices for goods will be hyper-inflating the general population will be experiencing elevated levels of unemployment. For the final cherry on top, the Federal Reserve will be injecting liquidity into the economy by printing new currency into existence which will drive inflation even higher. Welcome to the nightmare scenario.

This doom loop creates a necessity for the average family to have already secured their immediate and medium-term food supply. If you have existing land available, we recommend starting a large garden or space accommodating.

If you live in an apartment, condo, or simply don’t have access to land try and find a local farm to partner with to reserve space or a percentage of their agricultural production.

4) Invest in commodity cash flows

If you are blessed to have sufficient capital for more advanced investment opportunities then you should consider buying assets that generate cash flows from real commodities like precious metals, farmland, or oil & gas wells.

Commodities and energy are two industrial sectors that tend to outperform others such as Technology and Financials during regressive economic periods. The reason is that the accumulation of those assets becomes more expensive for producers to manufacture and more valuable for consumers.

If you can get into income streams such as gold royalties or oil-well royalties that could be a fantastic way to keep income generating into your household that will keep pace or exceed the rate of inflation.

5) Obtain multiple foreign passports

When times get tough, even tough people flee. Truer words are rarely spoken, specifically when there is chaos in the streets. Arguably the best alternative a family can take is to flee to a foreign jurisdiction after all other options have been exhausted.

Getting a second citizenship or residency from other countries provides flexibility by hedging the risks of one economy collapsing versus another. Some countries offer various types of programs for obtaining both citizenship and residency, including capital investment opportunities in sectors such as real estate or government donations.

How will you survive the Depression?

The signs of the imminent economic Depression are obvious and all around us. Whether you are looking at the spiraling homelessness crisis or political dysfunction, it doesn’t take a Harvard P.H.D economist to see the writing on the wall.

Hopefully, these 5 recommendations can help you begin to position yourself to survive and thrive during the coming collapse. Lastly, the most important investment you can make is in your Christian faith by strengthening your relationship with Jesus Christ, because without faith all hope is dead upon arrival.

The name Rugged Man was born out of a bet gone horribly wrong, however, the name stuck. Technology nerd by day, and survival enthusiast by night, he is committed to helping thousands of everyday people become more educated about topics such as Prepping, Survival, and Bug Out Strategies.

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