Some of you may be experiencing some very hard times right now. The amount of people that have lost their jobs is absolutely staggering. I am not surprised though. If you know how this economy works, then you know that it has been hanging on by a thread (long before this global crisis). There are millions of families in forbearance on their mortgages right now. Many of them will default on their loans. There are many more not paying rent and skipping credit card and auto loan payments. This is a recipe for disaster. Not just for those families, but for everyone else as well. In this economy, when several people begin to take on water, it eventually sinks the entire ship....well everyone in the middle and lower classes that is. Unfortunately, that is just how this system has been set up. I think more and more people are finally starting to realize this. That being said, I am going to give you a few tips on how to position yourselves better for what is to come. This is not a complete foolproof plan. It is a maneuver in the right direction.
First, let's consider the changes that everyone is about to experience. It is best not to be surprised. We need to know how to rework our lives around these things while still being able to maintain some sense of normalcy. Otherwise, it could be an unneeded shock to the system.
Prepare Yourself For A Cashless Society
There are so many articles and patents out there that tell us a digital currency is coming. The current global situation is being used to phase out cash. If you are familiar with the inner workings of this economy, then you know this has been the plan all along. If you believe that this scenario has been foretold in ancient texts, then you know these steps will lead the way for rather intrusive technologies in the near future.
Cryptocurrency is something I personally do not trust. If I cannot physically hold it in my hands, I do not own it. You do you, but this is not for me, and I will try to stay away for as long as humanly possible. Of course, it may be one of the only means of transacting soon enough.
Get caught up on the information being put out here.
The central banks are talking about it over and over, but no one seems to be listening. Unfortunately, this will be a huge upset for many investors as they are forced to transition into the new monetary system.
Learn To Get Away From "Currency"
Know that currency is not money. It is simply an accepted use of exchange for goods and services. You need to research what fiat currency is to fully understand this concept. There is a lot of information about fiat currency that I will not get into here. Take the time to thoroughly go over this data yourself so that you can truly fathom the type of system you are up against here. Unfortunately, we were not taught about the way this financial system actually works. It is up to us as individuals to find out these truths and use the knowledge to our advantage.
Find Out What Real Money Is
Money is something that holds its value. It is accepted by everyone and can be liquidated in any country IN ANY FORM. It stands the test of time by sticking around for thousands of years versus fiat that historically only lasts for about 30-40 years before inflating into oblivion (i.e. completely losing its value). It cannot be created out of thin air. Actual labor and manpower must be used to obtain it. I am, of course, talking about precious metals. Banks and Governments have been working very hard over the last century to convince people that precious metals are obsolete and not something that should be considered when building your portfolio. Funny how these same banks and Governments have been buying up precious metals like they're going to disappear tomorrow. I tend to find that if you follow what these entities do, it is drastically different than what they tell you to do. Metals do not require government regulation because it is so widely accepted.
Know that gold and silver is not an investment. It is a hedge against tumultuous and unstable fiat currency. Look at it as insurance. It will be something that protects your family for many generations to come. There are several cultures that widely accept this notion. They buy gold as presents and pass it down to family members. Here is a great video to watch that explains the basics of precious metals...
Take some time to listen to ITM Trading's videos. Lynette Zang does a great job of explaining the many facets of this system.
This is a very shallow explanation of the economy which is not a "free market" economy by any means. Central banks and corporations have seen to that by creating corporate buy-backs, derivative financial products, and quantitative easing. These are all forms of market manipulation that should be completely outlawed, but sadly they never will be. If you would like a small window into the inner workings of this banking system straight from the horse's mouth, I implore you to watch 'The Big Short'. The verbiage can get a little convoluted, so you should pause and restart as often as needed. Heck, I would take notes. I love the little message at the end of the movie, explaining that banks are still allowed to do the exact same things they were doing in 2008. They are just calling it something different.
Now, let's go over how we can take steps to protect ourselves from what is to come....
Get Out Of Debt
This is an obvious one, but also near impossible for many. If you can, quit purchasing things with credit. Only buy what is absolutely necessary. Any time you have some extra cash put it towards your debt. Chisel away at it, and over time, it will become much more manageable. Make sure you are taking no interest deals. Once those deals expire, look to see about rolling over that balance to a new no-interest deal until it is completely paid off. Better yet, look into bundling your cc debt into a fixed-interest loan. Research margin calls and how variable rate debt can absolutely screw you here.
If you buy a home, make sure that your mortgage is no more than two and a half times your annual household income. Make sure that you buy a home in an area with extremely low property taxes. Over time, as you've already been seeing, property taxes will go up in all areas to unfeasible amounts. This mechanism, as well as others, is carried out on purpose to ensure a nation of renters. The Federal Reserve is currently implementing its plans to be the 'lenders and buyers of last resort'.
Here is an article going more into depth on how to budget better...
Diversify Your Portfolio
I do not necessarily mean stocks here. Honestly, this market is so volatile and manipulated, I would not trust any large amounts of retirement in it over a long period of time. Even if your financial advisor has told you that your money is safe, I would not take their word for it. They were taught that the financial system works a certain way, just like you were. I would consider short term investments in the market. Make your profits, then take your profits.
Keep cash on hand for emergencies. Keep very little of your wealth in banks; only what you need to pay bills. Research 'bail-in laws' that were placed in the Dodd-Frank Act after 2008. You'll thank me later. As previously stated, convert some of your wealth into precious metals. The percentage is going to be up to you and your comfort level.
Invest in items that will prove to be valuable in the future. These are things you may not have ever thought of. I am talking about food, clean water, self-sustaining energy. Skills can be considered extremely valuable when people do not have access to normal luxuries such as running water, heating and cooling, or even shelter. I am including another article that will give you a little more insight into this.
Here is another great article to help you adjust your mindset and expectations when dealing with this system...
Become Self-Sufficient
This is simply carried on from my last post. Position yourself to where you will want for nothing because you can do it and make it yourself. In a country where most people are used to having everything handed to them, possessing skills such as these are absolutely priceless. Anything you learn, though, you must use it to help others in need when you come across them.
Have A Plan A, B, C, D, etc.
Understand these plans that have been put into place can play out in any way, shape, or form. You need to be ready with strategies for whatever direction they move forward in. Think about living arrangements. Think about what is most important to you in your house. If you have to move quickly, what will you take with you, and do you have the means to move it? Do you have somewhere to go? Maybe consider buying some cheap land and building an inexpensive home on it (like a container home). Consider even a travel trailer, prefab home, or tiny home. If my husband and I ever get the chance to do something like this, we will record it every step of the way for you.
I have several more articles that will help you come to more of an understanding of this way of life. It is what this entire blog is about. Living simply and getting back to your true path in life is where you need to steer your focus. Things will work themselves out along the way.
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