Survival Tip #1: Get out of debt.
If there is an economic crisis, being in debt is one of the worst positions you can be in. Instead of using your financial resources to take care of your family, you’ll be worried about holding on to your assets.
The only way to ensure that no one will be knocking on your door, wanting to take everything you own because you defaulted on your debt is to eliminate your debt.
Create a plan to get out of debt and work your plan until you’re free. If you need help, here is a link to help you get out of debt fast.
Survival Tip #2: Create an emergency fund.
It’s wise to have at least six months of your income in savings once you’ve become debt free. Having a cash reserve is the smartest first step to achieving financial independence and security. This money can be used to handle expenses should there be an economic collapse, illness, injury, or job loss.
The fastest and easiest way to build your cash reserves is to continue the money saving and budgeting you used to get out of debt until you have enough where you could live your current lifestyle for six full months, even if you didn’t earn another penny in income.
Here is a worksheet to help you budget out your expenses and find the room to save.