There has been a lot of talk lately about the possibility of the United States entering hyperinflation. If that sounds like a scary word to you, then you’ve got good instincts.
Hyperinflation refers to inflation on an enormous scale, where the price of goods goes up significantly. The things you’re used to purchasing now would skyrocket way outside of your normal budget, making it almost impossible to keep up.
While all this talk could be just that – a lot of talk – it’s never a bad idea to be prepared.
Preparing for hyperinflation involves getting your finances in order, stocking up on the right things before it hits, making backup plans for everything, and ensuring you and your family’s safety. Starting your preparations now could make the difference in how well you make it through hyperinflation.
In this article, we will go into detail with each of these steps so you can prepare for hyperinflation just in case all the talk becomes a reality.
Get Your Finances In Order
When money becomes practically worthless, the last thing you want is a pile of expenses and debt hanging over your head. Set yourself up for success when hyperinflation hits by getting your finances under control.
Here are a few ways to be smart with your money right now.
Pay Off Debt
It’s important to pay off any debt with adjustable interest rates first and fast. In the midst of hyperinflation, those interest rates are going to rise quicker than you can pay them off, taking what little money you have out of your wallet in the blink of an eye.
Get together any credit cards or loans that need to be paid off and make a plan to pay it down to nothing. Use strategies like debt consolidation or debt management to help you pay it off faster.
Cut Unnecessary Spending
The best way to save money is to find areas of your life where you can cut costs. These little things start to add up over time, leaving you with a nice little nest egg when things start to fall apart.
Transportation costs should be your top priority. Gas prices are going to go through the roof, so find alternatives to your car while you have the chance. Walking or biking to work can save you a pretty penny. Or maybe you have a car you don’t necessarily need. Selling it can reduce insurance and maintenance costs significantly.
On a smaller scale, there are likely a number of lifestyle changes you can make in your day-to-day life to save money.
Instead of eating out at restaurants, start making more meals from scratch. Those skills will come in handy during hyperinflation. Start buying things second-hand rather than retail by scoping out craigslist, eBay, thrift shops, and good old-fashioned garage sales.
The more expenses you cut, the more money you can save. And that may be your saving grace.
Find Other Ways To Make Money
Even if you have a job, starting up an additional side hustle can really pad your income and your savings. The best way to get your family ready for hyperinflation is for everyone in your home to have some way of making money.
Many streams of income build up an incredibly steady flow.
There are a multitude of side jobs that you’ve probably never heard of before. The internet and mobile apps make it easier than ever to make a few bucks here and there up to hundreds of dollars in extra income every month.
And yes, your kids can pitch in as well.
Stock Up On the Necessities
Once everything goes sideways, it’s going to be difficult to find the things you need, let alone things you want. If you’re truly concerned about hyperinflation, it’s better to start stockpiling now rather than later.
Starting now allows you to build up stock gradually instead of buying it all at once.
Here are some of the things you should consider purchasing.
Stockpile What You Need To Survive
When the going gets tough, the price of things you need the most starts to go up drastically. Bottled water, toilet paper, and non-perishable food are suddenly ten times the normal price and that just won’t fit into your budget for long.
Start adding the essentials to your shopping list every time you go to the store. Buy extra packs of toilet paper, bottled water, cans of food, and versatile items like vinegar and baking soda.
When these things go on sale, stock up with even more so you can easily fill your cupboards, shelves, fridge, and freezer. There are a lot of things you can stockpile while prices are at their normal level. But focus on the things you and your family use every day.
And don’t forget to regularly check expiration dates so you can cycle your stock before it goes out of date. Use it now and replace it with fresher goods. You don’t want to take on hyperinflation only to find out most of your stockpile is bad.
Gather Luxury Items For Bartering
Cravings don’t go away just because people can’t afford to feed them anymore. When the money runs dry, people will turn to bartering for goods. If you have what they want, they’ll give you what you want – whether that’s food, water, gasoline, or something else.
The best things to stock up on in this category are cigarettes and coffee.
Even if you don’t personally smoke or drink coffee, having these things in excess once hyperinflation starts puts you in a position of power.
Invest In Alternative Currency
Even though paper money will lose its value under hyperinflation, gold, silver, and other precious metals will always retain or increase their value.
Do your research into the gold and silver market. Start investing some money now while you have it to get your hands on as much of these things as possible. When it’s all said and done, you’ll still have valuable currency to your name.
The same idea applies to land and other real estates as well. People will always need places to live, making real estate extremely sought after.
Make Backup Plans for Everything
What will you do if your electricity goes out? How will you cope without the appliances you use to wash your clothes, wash your dishes, and cook your food?
Self-sufficiency is absolutely key when it comes to hyperinflation. The prices of electricity and gas will go up an outrageous amount along with everything else, which means you may not have it for long when everything starts going down.
You might not think about things like installing a clothesline to dry your clothes or having a run-of-the-mill dish drainer so your plates dry properly, but these are the things that will keep you going on a daily basis. These mundane activities are often the most important and yet the most easily overlooked.
Have a plan in place to grow your own food and a way to cook it even if you don’t have a stove to rely on. The only thing you should fully rely on is your own skill and preparation.
Invest in a few books about self-sufficiency to start off and apply the information as you best see fit.
Enhance Your Security
First and foremost, only tell the people you trust most, if anyone at all, that you are stockpiling goods. When shelves start to empty, people get desperate, and they’ll start doing anything it takes to get their hands on what they want and need.
During hyperinflation, you will have to protect yourself, your family, and your property from the outside world. Whether they’re desperate, angry, or just plain ill-intentioned – you can’t put anything past the people you don’t know and love.
Now is a good time to invest the time and money into arming your family and learning how to use your weapon of choice properly. Every member of your household should be trained in gun safety and usage.
There’s always safety in numbers.
If there are family members or friends that don’t live with you now who you would trust with your life, it might be a good idea to have a plan in place for the worst. If hyperinflation hits, you can all pool your stockpiles together and stay in one house to keep it and everyone inside it safer.
Keep a Positive Attitude
The key to survival is having the confidence and optimism to see you through it.
Focus on the most important things – the health and safety of you and your loved ones. Remember that you are doing everything in your power to set yourself up for success just in case everything falls apart.
And keep in mind that nothing is ever a certainty.
Hyperinflation isn’t assured but it’s also never off the table. Times like this are when it’s good to hope for the best but prepare for the worst. By preparing for hyperinflation, you can remain positive that you’ll make it through the tough times if they arrive.
That alone will keep you going.