How To Prepare For An Economic Depression: 9 Steps For The Average Joe

by Stephanie on August 2, 2013

Psst. I’m gonna share a little secret with you…

I think we’re in an economic depression.

Don’t believe me? Consider the fact that more than 100 million Americans are on some sort of government food assistance right now. If EBT cards didn’t exist, just imagine how long the soup lines would be!

I write more on how I’m preparing for an economic 9/11 here.

In this post I want to share with you the recommendations of Nicole Foss, an acclaimed finance, energy, and preparedness analyst who believes we are headed towards a deflationary spiral. Yes, the time to prepare is still NOW.

In her article, “How to Build a Lifeboat,”  she explains the 9 steps to personally take to prepare for a deflationary depression. I have taken these recommendations to heart and me and my family are actively following these steps to the best of our ability.

How to Prepare for an Economic Depression

According to Nicole Foss, the 9 steps to take to prepare for an economic depression are:

1) Hold no debt (for most people this means renting)

2) Hold cash and cash equivalents (short term treasuries) under your own control

3) Don’t trust the banking system, deposit insurance or no deposit insurance

4) Sell equities, real estate, most bonds, commodities, collectibles (or short if you can afford to gamble)

5) Gain some control over the necessities of your own existence if you can afford it

6) Be prepared to work with others as that will give you far greater scope for resilience and security

7) If you have done all that and still have spare resources, consider precious metals as an insurance policy

8) Be worth more to your employer than he is paying you

9) Look after your health!

In the original article, Nicole Foss further explains these recommendations better than I ever could. Below, I give you my take on these steps and what my family is doing.

1) I don’t care if you want to start a business, go to college, or buy a house- “debt is not a tool!” Pay off your debt and do not take on new debt no matter how low interest rates may appear to be. It took us 4 years but we got rid of our mortgage and paid off $60,000 worth of debt. We may not have a fancy house or nice cars but we are better off than 90% of the Americans out there.

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