Preparedness isn’t just keeping a 72-hour kit in your garage. Multiple components go into being truly prepared, including making sure that finances are in order. This doesn’t just mean having an emergency fund, either, though that’s always a good idea. Financial preparedness includes not only an emergency fund and a decent savings to live on if things get rough, none of which will help much in the event of a currency collapse, but also debt control and, ideally, elimination.
Eliminating debt will go a long way in preventing further issues when things go south, leaving more of your precious and likely limited resources to devote to other things, like purchasing essentials or bartering with your neighbors. It also removes financial claims others may have on you, which may all get called in at once in the event of a currency collapse or other financial disaster.
A variety of options exist to help eliminate debt more quickly, including the relatively famous debt snowball method, which can allow you to shave years and hundreds of thousands of dollars in interest off your total amount paid on debt. Seek out ways to make a few extra dollars each month to devote exclusively to debt payoff. Renting out a spare room, ad revenue on a website you may own or want to start, even a good annual garage sale can help speed the debt payoff and get out from under those financial obligations faster.
Nobody knows exactly how long we have to prepare, so getting a strong start today, not tomorrow, can make all the difference when the time comes. Take a look at the data below for an idea where we stand as a country on average household debt. Getting out from under that weight of debt can provide not only preparedness, but a huge amount of stress relief as well.