Archive for the ‘Economy’ Category
Overcome This Economy in 3 Easy Steps
Posted by Sonya in Economy, Mastermind on March 26th, 2009
How To Thrive in This Economy
Scary news reports seem to be coming out every day. Many analysts are now saying that this recession (when will they start calling it a depression) will last into 2010. Other analysts are telling us to brace for a hyper-inflationary period. It is easy to find ourselves paralyzed with fear or indecision. Now and again over the last year, I have found myself unable to move forward with future plans. However, I finally found a way to overcome that fear, and move forward with my proactive plans for the future. Here is what I did in three easy steps.
1. TAKE RESPONSIBILITY
Seems that wherever I turn, I hear people looking for someone to blame. The politicians are blaming the CEO’s. Taxpayers are blaming the politicians. The CEOs are blaming the borrowers. Where does it end? I’ve made the decision that in my life, it ends with me. I will not rely on a big corporation to provide me with a pension. For that matter, I will not rely on my government to take care of me during my retirement either. It is my responsibly to take care of myself and my family. The very first step is to stop looking to the government, a corporation, or a boss to solve your problems for you.
It is also time to stop looking for a guru or a financial planner to make your financial decisions for you. Take it upon yourself to become educated about money and make your own financial decisions.
Once the decision has been made to take responsibility for your own finances, it can be a lonely road to navigate. Where do you begin?
2. MAKE TWO PLANS
Begin with laying out a plan. Actually, lay out two plans. Make a plan for preservation. This is your safety net if things go really bad. What will you do if hyperinflation hits? What will you do if the deflationary period continues? The nice thing about the plan for preservation is that once the plan is in place, it doesn’t take much extra time or effort to follow through with the plan. Once the safety net is in place, it is time to focus on your second plan – the plan for prosperity.
“In Chinese, the work “crisis” is made up of a combination of two characters. The first signifies “risk.” The second stands for “opportunity.” – Jim Rogers A Bull In China
Start focusing on the opportunity that exists all around you. Once you open your eyes to opportunities and make the decision to focus on them, you will start to notice them all around you.
3. SET GOALS and MASTERMIND
Now that you have your two plans in place, set some goals – and join a mastermind group. Your mastermind group will not only help hold you accountable for your goals, but they will also help you troubleshoot, find additional resources, and generate new, bigger ideas to help you reach your goals.
The economy can seem scary… but it is only scary if it feels out of control. If you make the decision to take control of your own destiny, the scary feeling will go away, and be replaced with an excitement and optimism for the future.
Hyperinflation Plan – What You Can Do Today.
The last post about Hyperinflation Survival is full of strategies and tips, but falls short on things we can do today to help us prepare for hyperinflation. With more and more people feeling like their money is going down the drain, the ability to take action today is important. Here are some things you can do:
- Buy Metals. You can chose to buy physical metals, or go for the paper variety. If you decide to buy physical, you may be able to pick some up from a local dealer. If you choose to shop online, Northwest Territorial Mint is a good source for physical delivery of your gold and silver. You don’t need to make a large investment at once. Add the investment of metals to your monthly budget, and stow away your deliveries as they come in.
If you decide you are more comfortable with the paper variety, you can use your brokerage account to buy commodity based EFT’s. SLV is an example of an EFT for silver.
- Make a Food Storage Plan. Food storage is not a once in a lifetime activity. It is actually a subtle change in the way you eat, shop, and prepare meals.
Store what you eat and eat what you store. When I first thought about storing food, I thought of bags full of barley and beans. I don’t eat barley, though and I honestly would have no idea what to do with a bag full of the stuff. Storing an item that your family does not eat is a recipe for old, rotten food. Even bags of wheat or barley, years later can become bug infested disasters. It is a much better plan to store foods that your family will eat, and to rotate your food storage supply into your kitchen. When you buy a new box of spagetti noodles, place it in the back of your spagetti noodle row, and put the first box into your kitchen.
Baby Steps. The idea of storing enough food to last your family a year can seem like a very daunting task. It would be a daunting task if you took it on all at once. However, if you take the task on in baby steps, and integrate the food storage habit into your lifestlye, you will reach your goal before you realize it. Start with learning a little, putting together a 3 month plan, then take your shopping list with you the next time you go to the store.
The ladies over at Food Storage Made Easy have an excellent resource for all your food storage questions, so I won’t go into any more detail here on food storage. They offer an excellent resouce called the 3 Month Food Supply Spreadsheet
This is a great way to get started. Once you have filled out your 3 month spreadsheet, you can just take the ingredient list with you when you go to the store, and pick up the items that are on sale. Over the period of a couple of months (or faster if you would like) you will have your 3 months of food supply without having spent a lot of extra money.
- Produce Your Own Food. If you live in the country, this is a lot easier, but even people in cities can grow some of their own food! Grow Your Own Garden, Raise some Chickens… you get the idea! More and more people have been raising chickens, even in towns. However, if you live in a town, you may not want a rooster. Atleast, your neighbors may not want you to have a rooster! Resources abound on the internet for gardening and chicken-raising topics. You can also decide to start baking your own bread, and making meals in bulk and freezing some for use later.
I want to hear from you! What else can be done, today to prepare for a difficult economic time?
How to Survive Hyper-Inflation
Hyperinflation Survival
The last year, if nothing else has taught us that nothing about our economy should be taken at face value. We have seen “unthinkable” after “unthinkable” take place. One thing is certain – we are not out of the woods yet. It seems we are balancing on a very thin line, with hyperinflation on one side and deflation on the other. The Feds have shown us, time and time again through their actions, that they want to avoid deflation at all cost. This means a very real possibility of hyperinflation. As residents of the US, we all need to be aware of what hyper-inflation is and how we can survive it.
During Hyperinflation, the cost of goods goes up rapidly, as the value of the currency drops. There are several examples of hyper inflationary periods, but sometimes a picture really is worth a thousand words.
Woman Buring Currency in Germany.
This woman is using her currency as fuel. The cost of to purchase an equal amount of fuel would have been much higher than simply burning the money.
Strategies for Surviving Hyperinflation
- Food Storage and Production. The bottom of the pyramid is survival; food and shelter. Take care of your basics by providing them for yourself. Store food and produce your own, where you can.
- Hard Metals and other commodities. Traditionally, as the value of a currency goes down, gold, silver and other commodities will go up.
- Foreign Currency. When we are looking at a potential dollar crisis, it makes sense to hold a different currency. The entire world is in a state of economic flux, so research thoroughly.
Business Strategies During a Hyper-inflation
- Borrow money at a fixed rate, or if you already have loans, be sure to lock them into a long term fixed rate now. Rates are historically low. If hyperinflation sets in, the Feds will start to raise rates. You want your payments to stay fixed. Remember, if hyperinflation sets in, you will be able to pay that debt off later with your “declining-in-value” money.
- Lend money at a variable rate. During hyperinflation, interest rates are likely to go up.
- Control your own intake of money (don’t work for someone else) – this way, you can adjust your fees as necessary. Do not get into any long term contracts with your customers. You want the ability to raise rates to keep up with inflation
- Fix your contracts with your vendors and other expenses for as long of a period as possible.
- produce and sell goods or services that will be in demand in a difficult inflationary period. People will be getting back to the basic survival needs. Some entertainment and other inexpensive distractions may also do well. People will need a break from the stress.
A hyper-inflation may not happen, but if it does, you don’t want to be caught with your pants down. There is no harm in being prepared.
