Do you have a financial plan for your family if the united states were ever to have a second great depression?

If the United States had an economic downturn on the scale of the Great Depression of 1929, your life would change dramatically. One out of every four people you know would lose their job. That’s because the unemployment rate would quintuple from its current rate of 5 percent to 25 percent.

Economic output would plummet 25 percent. That means gross domestic product would fall from its current $19 trillion level to $14.25 trillion.

Instead of inflation at about 2 percent, deflation would cause prices to drop 10 percent. International trade would shrink 65 percent. That’s how bad the Great Depression was.

Could it happen again? In a 2011 CNN poll, nearly 50 percent of Americans believed it could. They thought it would happen within a year. Fortunately, they were wrong.

But many people are still worried about a depression reoccurring. Others are convinced we are already in a depression. They just can’t see where the drive for growth will come from. What makes these Americans so worried?

Have you ever wondered what skills you might want or need in an economic crisis?  Do you have a financial plan for your family if the united states were ever to have a second great depression?  There are several methods to procure goods and provide for the needs of our families.  Over time these methods rise and fall in their level of importance.  Preppers try to research and develop more than one strategy for doing anything, that includes emergency financial planning.  Below are 5 essentials for an emergency financial plan.

1. Cash

Cash is still king!  In the great Chicago fire of 1871,  most people were trying to escape the city.  The ones with cash reserves were able to rent and purchase wagons and horses to quickly make their way out.  Add a mix of small bills & large bills to your bug out bag or fire safe.  The small bills are for small purchases.  Many believe that people will overpay for items in emergency situations because no one will have time to give back change.  The large bills are for bribes or big purchases.

2. One Year Worth of Emergency Supplies

Having food, water, warmth, first aid, and hygiene supplies means that you won’t have to worry about paying or bartering for items.  Create a plan and calculate the number of supplies to get you through a year.

3. Gold, Silver, & Copper

If the US dollar collapses it is very likely that gold, silver, and copper will be the next currency.  There are affordable ways to stock up on these commodities . In the nonfiction book:  The Modern Survival Manual: Surviving the Economic Collapse of Argentina the author was asked what he wished he would have done to prepare, he said, I wish I would have had a stash of men’s silver wedding bands to barter with.  Selling a wedding band looks like your selling the last valuable possession you own, so you’re less likely to attract robbers.  Add a few silver coins to your emergency stash every year.

4. Stock Pile Goods to Barter with

Goods such as food, soap, fire starters, and self-defense weapons will always be in demand.  If money loses its value items such as these will be useful for trading for others things you’ll unexpectedly need.  Start developing your barter network now.  My uncle barters pears from his tree for tomatoes from his neighbors garden.  Think of which commodities you want to stock-up on for bartering purposes.

5. Develop a Bartering Skill

Consider developing a skill that is of value in a bartering economy.    It’s the safest of all of the 5 Essentials for an Emergency Financial Plan.  All the others can be stolen or lost in a crisis.  Skills you’ll always have, whereas, goods you can run out of.  My father bartered his handyman skill regularly.  He had a seasonal job at a cannery which meant that he was laid-off a couple of months each year.  When he was laid-off, he would take whatever work he could find, even if the payment for his work was in goods rather than cash.  The most unusual barter I remember was when he brought home what seemed like 100 rolls of old toilet paper (not as soft as the new stuff).  I didn’t appreciate it at the time but it saved my parents from buying toilet paper for a year which can add up when you provide for a family of ten.