What Is An Economic Collapse?
An economic collapse is not part of the normal cycle of rise and fall of the economy, instead it is the breakdown of an economy, usually following a large scale disaster or crisis. One of the worst economic collapses is the Great Depression of the 1930s, which had a global effect for many years. It was caused by a variety of factors with the first trigger being the New York stock market crash of 1929. During the Great Depression, there was very severe unemployment in industrialised nations around the world, followed by homelessness for many as they could not afford mortgage or rent payments.
What Will Happen During An Economic Collapse?
The biggest risk to individuals during an economic collapse is the threat of unemployment. Economic collapses cause many businesses to fail, which means that their staff will become unemployed. Being unemployed during an economic collapse can then cause other problems such as homelessness due to the inability to pay mortgage or rent payments and starvation due to being unable to afford food.
Prepping For An Economic Collapse
The best way to prepare for an economic collapse is to have a sound financial plan. Aim to pay off as many debts as possible over the shortest time period possible, and build up a savings account. Maintain a supply of food so that you can survive for a longer period of time without having to spend money after an economic collapse.
If you can manage to live with the minimum possible expenditure, then you are well prepared for an economic collapse.