People have been asking a lot about a coming economic disaster and an imminent collapse. So, let’s talk about it…
There are always rumblings going on about some sort of economic crisis brewing – whether it be a dollar collapse, a stock market crash, a housing bubble burst, or hyperinflation, whatever!… It’s all brewing apparently! Meanwhile, the people spreading this news are profiting from the fear of their listeners. They’re making commissions selling gold, silver, survival guides, the whole nine yards… but are they right? To a certain extent, yes.
History has effectively shown that the world and global economies go through boom, correction, and bust cycles. Some worse than others. The only questions that remain are pertaining to “what sector?”, “how bad?”, and “when?”. It’s at this point where you need to proceed with caution.
Often times, people will throw a lot of compelling factors and numbers at you to try to get you to believe their theory on how bad the next crash will be, what’s behind it, and when it will happen. After hearing this pitch, they’re suddenly trying to sell you something. So just be ready and not too surprised when that happens.
So with everyone saying different things, it’s probably tough on who to believe. Especially when the mainstream media is saying everything is great and dandy, while all the other economists and investors are screaming bloody murder – Jim Cramer before the 2008 housing bubble. So you’re probably wondering, “Who do I trust?” or more importantly, “Why do I care?”.
Here are 5 reasons why you should care:
1) Whenever there is a collapse, there is a massive transfer of wealth. Some people get poor – Some people get rich. You might know people or be one of the people caught on either end.
2) Corrections usually have an impact on businesses, jobs and opportunities.
3) Events like these usually have an impact on how people do business, new laws, and new regulations. Therefore, if you want to profit in this world, pay attention.
4) It could have a direct impact on your personal life, be it your own wealth, your family, your friends, etc.
5) Finally, you should care because it could be a major opportunity for you to invest and jump in while others are jumping out. For instance, some people who bought stocks or Real Estate at their lowest between years 2009-2010, more than doubled their money in just a few years. It’s when these big things happen that you should be making big plays. It’s like walking into your favorite store when everything is 60% off.
So now, who should you trust?
This is a tricky one… While I obviously can’t provide you with specific names and entities, I can offer up some principles and healthy practices to have in place.
Whoever you’re hearing the crisis news from, ask yourself the following questions:
1) Where does this person get their information? If you know, then go to the sources and fact check them and see if their data assumptions are skewed or accurate. Also, if they get their information from some bozo sources, they’re probably not accurate. If you are unsure about their source, do research before you trust it.
2) What is this person tied to and involved in? Think about what this person does. What would they have to gain?
3) What business are they in? And, are they trying to sell you something? If so, their information is probably blown up to make you buy something or the opposite and make you think everything is alright.
4) Be a skeptic of all news. Keep in mind, behind every message on any source of media there is often money behind it. So be careful of what you believe to be true, but also don’t be oblivious to what people are saying either.
5) Finally, do your own research. Try finding out for yourself. Educate yourself about different indicators, signals, red flags, and other factors that have historically proven to reveal an upcoming crisis.
What should I do if there is an actual crisis at hand?
After all, crises do happen and usually people are in trouble before they even realize it. You don’t want to be that person. There are a couple of things you should know and there are a couple of steps you can take to hedge against any such reality and prevent some serious damage to your life. And there are ways to prepare without looking like an apocalyptic, obsessed gloom-and-doomer. Don’t be that guy…
First things first – you want to be in control of your financial position, able to handle an unexpected financial uncertainty at any time. So, what does that look like financially?
- Little to no debt – Nuff said…
- Reduced living expenses (or able to quickly reduce spending)
- An EMERGENCY FUND – This is a must at all times (although it’s easier said than done). You should always have at least 3-6 months of your income saved up.
- Counter-cyclical assets – Some of your investments should be in assets that perform well in times of calamity and uncertainty. This is usually precious metals like gold, silver, or stocks that do well in the downs of life.
- Alternate sources of income – If you only have one source of income and that goes, you’re in trouble. Trying looking for passive income investments or have some sort of back-up plan that enables you to bring in extra money.
- Money in the Bank – You obviously want money in the bank for multiple reasons when the time comes. You want to be able to afford staying afloat for some time. But more importantly…
- Have money ready to invest – Like I said before, when things go down, it’s usually a good time to buy.
Remember, prevention is always better than the cure. You don’t want to be one of the people standing in line at a crowded welfare facility waiting for the government’s help, you want to be self-sufficient. It’s typically the irrational actions of people during a crisis that makes the matter ten times worse than it actually is. So just remember a few of these tips if something happens:
- Be cool-headed if and when things go down. Don’t follow the crowds
- Have a keen and skeptical eye and judge for yourself
- Be discerning about what people say, they might have different intentions than you think
- Don’t act out of fear and emotion. That’s usually when people make dumb decisions
- Be a rational well thought out thinker with an eye toward the long-term
- Be a aware of what’s going on and protect your family
At the end of the day, it’s difficult to predict the future and be fully prepared for when something serious does go down, but you should always be thinking and preparing in the best interest of your family and loved ones.
So what do you think is going on in the world today? Business as usual? Or is there something brewing? Comment below!
P.S. If you’re looking for more info or voices on this subject these author’s have some interesting things to say…
I hope you enjoyed this read and found the content useful to you. It is my hope and prayer that serious calamities are avoided and that downturns are mitigated. But unfortunately, they do happen and we have to be responsible and prepare for the worst!
As always, thanks for reading!
Cheers & God Bless
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