According to a new study, most Americans are incredibly unprepared to face even small-scale financial emergencies. In fact, according to a recent Google Consumer Survey approximately 62% of Americans have less than $1,000 in savings. The numbers are backed up by another recent survey conducted by Bankrate.com that found 62% of Americans have no emergency savings for emergencies like a $1,000 emergency room visit or even a $500 vehicle repair.
While these numbers may be shocking to some, they are actually not that surprising when you look at the numbers.
The American public has been hurting for quite some time, and the supposed economic recovery never really quite worked out the way they said it would. According to new numbers from the Social Security Administration, over 51% of all workers in the United States now make less than $30,000 a year. To put those numbers into perspective, the federal government sets the poverty level at $28,410 for a family of five.
Americans are struggling, and despite the constant government propaganda campaign, trying to convince the public that the economy is in recovery mode, things have only gotten worse since the 2008 financial banking meltdown.
- According to the Census Bureau, the number of children receiving food stamps remains higher than it was before the start of the Great Recession in 2007. Approximately one out of every five kids in the U.S. now receives federal food stamp benefits.
- 65 Percent of U.S. children live in households that receives some form of aid from at least one or more of the following government aid programs: Temporary Assistance for Needy Families (TANF), the Supplemental Nutrition Assistance Program (SNAP), the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), Medicaid, and the National School Lunch Program.
- By the end of President Obama’s term in office, The United States will have over $20 Trillion in National Debt.
I’ve written a number of articles telling people how to prepare for the coming collapse of the economy, but the reality of the situation is that most Americans are already teetering on the edge of a financial crisis.
Things you can do to Prepare for Economic Troubles:
Get out of Debt Immediately: While this might be easier said than done, you need to do everything you can to get out of debt. Whether that means taking on a second job, canceling all non-essentials (gym memberships, cable, cell phones, etc…) or just selling your old stuff at a garage sale, you need to work towards zeroing out your debt. The last thing you need is to be facing a foreclosure or repossession when the economy starts collapsing.
Learn to Prep on a Budget: Don’t be fooled by fancy marketing gimmicks that try to convince you that you need to spend all sorts of money to be prepared. While you may have to spend some money to get on top of things, prepping should actually save you money in the long run. Put together a budget that accounts for all of your essential needs and then add a realistic preparedness line item to the budget.
- Watch for sales and only buy things that you know you will need and use in the future.
- Stock up on long-term goods and consumables that will hold their value even during a collapse.
- Make a rule that you will only buy things when they are on sale or when you have coupons and can then buy them in bulk. It takes some work and some planning, but buying in bulk not only helps you build your emergency stockpiles, but in the long run it’s going to save you a lot of money.
Establish an Emergency Fund: Part of that written budget should include a line item for putting away some sort of emergency fund. You may not be able to fully find it right now, but every dollar that you can throw at that fund will put you that much closer to your goal of being financially prepared to meet future crisis situations.
Learn to be Self-Sufficient: One of the biggest problems we face as a country is the lack of self-sufficiency that has spread like a disease throughout this country. We live in a throwaway society, where instead of learning how to fix something when it breaks, people instead run to the nearest store to buy another piece of garbage that they probably didn’t need to begin with. One of the best things you can do to ensure your future and your financial freedom is to learn how to be completely self-sufficient.
- Start learning how to hunt and fish: Depending on where you live, these skills can help you start supplementing your food supply and cut down those expensive grocery bills.
- Learn to Cook: Believe it or not, simply preparing fresh homemade meals instead of buying prepackaged junk can save you hundreds of dollars every month.
- Plant a Survival Garden: Another self-reliant way to cut down on your monthly grocery bills is to start a small garden.
Have ideas or tips that you think can help? Please leave your ideas in the comments section…