Surviving economic collapse: How to prepare for hyperinflation

Hyperinflation is the runaway and excessive rise in the prices of most goods, including necessities like food, water and fuel. Being prepared for hyperinflation is important because steep price hikes can cause starvation, homelessness, chaos and economic collapse. (h/t to SurvivalSullivan.com)

Signs of hyperinflation

Hyperinflation occurs for two main reasons: The amount of cash circulating in an economy increased significantly or supply chains are disrupted.

The former happens when the government prints more money to pay for its spending. If this increase in money supply is not supported by economic growth, it can lead to hyperinflation.

Supply chain disruptions, on the other hand, happen due to a variety of reasons, including war, disasters and an increase in the money supply. Because the supply is not able to catch up with the demand, businesses will raise prices. (Related: Hyperinflation begins: Supplies of everything are running short as prices soar.)

Hyperinflation leads to the following:

• Excessive, rapid price hikes – Price increases can occur daily or even hourly, causing necessities like food and water to cost up to 50 times more than they did before.
• Devaluation and loss of savings – Your savings and investments will be severely devalued in the event of hyperinflation.
• Mass hoarding – Non-preppers will hoard all available goods before the onset of hyperinflation out of panic. This will further overwhelm an already strained supply chain, driving prices up even more.
• Rampant violence and crime – Non-preppers will resort to violence amid shortages in food and other necessities to prevent starvation.
• Mass unemployment – Hyperinflation will cripple many businesses, causing mass layoffs.
• Foreclosures – Price hikes and job loss will leave many people unable to pay their rent or mortgage.

How to prepare for hyperinflation

Being prepared for hyperinflation is mainly a matter of eliminating debt, securing access to basic needs and being self-sufficient.

Eliminate debt

It is extremely difficult to continue making debt payments at a time when even basic needs are unaffordable. Some types of debts, such as variable rate loans, are especially nasty because interest rates fluctuate in response to changes in the market. Get out of debt now to eliminate financial risks and free up money you would otherwise spend on paying back your debt.

Diversify income stream

Having multiple sources of income allows you to save more money than you’d otherwise would with just a 9-to-5 job. It also expands your skill set and brings you more job opportunities. If the industry you work for goes under, you have fallback skills that you can rely on when looking for another work.

Cut expenses

Look for expenses that are not particularly necessary and give them up. If you eat out several times a week, reduce this habit to one or twice a week and eat home-cooked meals for the remaining days. If you pay multiple subscriptions that offer the same service, consider reducing these to just one to cut expenses.

Invest in hard commodities

Hard commodities include natural resources that must be mined or extracted, such as gold, diamond and silver. These items retain their value over a long time, unlike paper money whose value fluctuates depending on the economy.

Things like land and an off-grid home are also worth investing in since these have an infinitely useful life. Before purchasing these, however, make sure you don’t have to take out a loan because doing so will get you into debt.

Stockpile

A survival stockpile contains virtually all of what you and your family will need should the economy collapse due to hyperinflation. Stockpile essential survival items like food and water before SHTF. (Related: Practical reasons why you should start storing food now – even if SHTF never happens.)

Enhance security at home

Hyperinflation fuels civil unrest and makes people more violent out of sheer desperation. As such, you need to ramp home security measures to protect your family from looters in the wake of SHTF. Stockpile survival gear and teach your family self-defense. If you have the means, consider upgrading your home and car to protect against burglars.

Go off-grid

Off-the-grid living entails disconnecting from the power grid and other related infrastructure, which means you don’t have to pay for utilities. To live off-grid, you need to find your own source of electricity, harvest your water and cook food using fuel you obtained yourself, to name a few.

Surviving hyperinflation is virtually impossible without making the necessary preparations. Follow the tips listed here to be prepared for economic collapse.

Sources include:

SurvivalSullivan.com

TheBalance.com

SkilledSurvival.com

OffGridWorld.com