We’ve posted articles before on this website about the slow-burning SHTF that we’re witnessing here and here. Years ago, in 2016, I wrote about the economic crisis like this:
The bottom line is, income will remain the same, decrease, or even disappear entirely for many of us. Meanwhile, the price of darn near everything will go up. Expect to pay more for things like keeping your utilities on, feeding and clothing your family, and keeping a roof over your heads.
Aside from that, those dollars you are carefully saving? They are only providing you with the illusion of security. The economic collapse will hit nearly everyone, and they’ll feel like they did something wrong with their finances. It will be hard to see that the flaw is not with their money management but the management of the country itself.
I wish I’d been wrong.
Here are some of the situations people are finding themselves in right now. Do any of them look familiar? Do all of them look like your current experiences? Be aware that if it hasn’t happened to you yet, that doesn’t mean it won’t. Don’t be smug because we all know that pride comes before a fall. Be humble and know that while different decisions could have been made, this economic disaster is creeping across nearly all socioeconomic groups, and it may only be a matter of time before it happens to you, too.
Wages are staying the same, and it isn’t easy to find work.
A lot of folks think that jobs are easy to find right now. They cite the signs that are up everywhere, announcing that businesses are hiring. As the mom of someone in her early 20s who is out there looking for a second job to increase her household income, I can tell you that just because there’s a sign out doesn’t mean the business is actually hiring.
A lot of places are required by their corporate headquarters to put these signs out to make it look like they’re thriving, but they aren’t actually hiring. Go in with a resume, and you’ll soon find out this is true. Obviously, it’s not the case with all businesses posting such signs, but it’s very much the situation in urban North Carolina right now.
Places that hire minimum wage workers are operating with skeleton crews, leaving too few frazzled employees to handle long lines and unhappy patrons. Have you been someplace like Walmart or Target lately? At least at our local stores, there’s generally one register with a human operating, and quite often, the line winds down the front aisle with dozens of customers.
Wages haven’t matched the increase of inflation. If you’re still making what you made a year or two or three years ago, you’re able to pay for far less with it. This leads me to the next situation.
Inflation means you are paying more for essentials like food, utilities, gasoline, and rent.
Our esteemed leader, President Biden, managed to read the teleprompter and tell us that inflation is all in our heads and doesn’t actually exist. He claimed proudly that in July, inflation was at 0%.
Speaking from the White House, Biden said:
“I want to say a word about news that came out today relative to the economy. Actually, I just want to say a number: zero.” He continued, “Today we received news that our economy had zero percent inflation in the month of July.” (source)
While that is the official statistic for July, it doesn’t reveal the true economic suffering. Over the past year, the official numbers for inflation are at 8.5%. And in the real world, we know that there’s actually more to the picture than the statistics show.
People are skipping a lot of things that they used to be able to pay for with ease due to the high prices. For example, a friend pointed out to me that on her last trip to the grocery store, a jar of mayonnaise was $5 on sale. A pot roast that used to be around 12 bucks is now more than $20.
A gallon of milk that was $3.04 in 2019 is now $3.55 (if you’re lucky.) At my local Publix, a gallon of generic milk is actually $4.41 as of the writing of this article. If you’re still making the same thing you were in 2019, things like that certainly belie the 8.5% bandied about.
And don’t even get me started on the high price of gasoline. My Jeep now takes almost $100 to fill up, whereas it took $60 just a year ago. Rent is out of control. The official numbers for the year are .5%, but around the country, people are reporting increases of anywhere from 25% to a whopping 70%. (See this article from the AP and this one from ABC.) Electricity costs are also skyrocketing. In Pennsylvania, the Public Utilities Commission reports increases of as much as 19%.
How on earth are you supposed to pay for food, gas, accommodations, and power on the same pay you got a few years ago, especially if things were tight then? People are getting evicted, getting their power shut off, and losing vehicles to repossession because they are unable to make ends meet.
Credit cards are maxed.
Speaking of being unable to make ends meet, Americans’ credit card debt has leaped from 846 billion to $887 billion between the first and second quarter of this year. In August, that number was reported to be $930 billion.
You may be saying, “Just don’t use your credit cards.” And that’s easy to say when you can pay your bills, purchase fuel to get back and forth to work, and have a paid-off mortgage.
But if you are a person who was living paycheck to paycheck before all this, what choice do you have? You can’t get to work without gas for your vehicle. You have to pay your rent. You need to keep your power on. If you’ve got an empty credit card sitting there, you’re probably going to use it for gas and food while you use your paycheck to cover rent and utilities.
And then, there will come a time, particularly if prices keep going up, that you can’t even make your minimum payment. There’s simply not enough income to meet the necessary output. So the first thing you’ll stop paying is your credit card bill as you struggle to keep a roof over your head and food in your refrigerator. And on and on it goes until you feel like you’ve completely made a disaster of your finances.
But was that disaster really one of your own making? If you’re in a lease, in a car loan agreement, and have this bizarre urge to…you know…eat food? The whole situation spiraled out of control before you knew it.
And then it gets worse.
Fees are piling up.
As I wrote in America’s Poverty Trap: How A Small Financial Setback Can Spiral Into an Inescapable Disaster:
If you bounce a payment by so much as a penny, then you are hit with a charge from your bank and, most times, a charge from the business that was taking the payment from your account. Most banks charge anywhere from $25-$38.50 when you have non-sufficient funds for a payment. Businesses charge in the same range, so that means that if one payment goes awry, you can lose $50-$77 in the blink of an eye.
Banks love NSF and overdraft fees. Why? Because in 2017, Americans paid $34 billion in fees for not having enough money to cover a payment.
But that’s not all. Some folks are paying literally 17,000% in overdraft fees annually.
Today, the Consumer Financial Protection Bureau (CFPB) released a report that raises concerns about the impact of opting into overdraft services for debit card and ATM transactions. The study found that the majority of debit card overdraft fees are incurred on transactions of $24 or less and that the majority of overdrafts are repaid within three days. Put in lending terms, if a consumer borrowed $24 for three days and paid the median overdraft fee of $34, such a loan would carry a 17,000 percent annual percentage rate (APR).
“Today’s report shows that consumers who opt into overdraft coverage put themselves at serious risk when they use their debit card,” said CFPB Director Richard Cordray. “Despite recent regulatory and industry changes, overdrafts continue to impose heavy costs on consumers who have low account balances and no cushion for error. Overdraft fees should not be ‘gotchas’ when people use their debit cards.” (source)
And then there are the other late fees.
If one of the payments that went awry in your overdraft avalanche happens to be a utility bill, things get even worse for a person who is struggling. Particularly if you aren’t able to cover the bill in sufficient time to keep your utilities from getting shut off. How much you’ll be charged varies by company, but if they really feel like you’ll have trouble paying in the future, they stick it to you, making it nearly impossible to get your power or heat turned back on. Here are some examples
- PG&E: “To restore service, you must pay the full amount due. You may also be required to pay a deposit twice your average monthly bill to re-establish credit.”
- Coast Electric: $35-50 fee to reconnect service, $6.50 late fee, $35 NSF fee, and potentially even a $35 collection fee
- Talgov: $28.50 each for gas, water, and electric
They can be charged late fees by all sorts of businesses. Now they’re really in trouble.
How in the world can you bail yourself out when every payment you make to catch up comes with an extra $12 “convenience fee,” a reconnect fee, and a late fee, along with an overdraft fee from the bank itself? It just takes one overdraft to unleash financial quicksand from which there’s no escape.
The SHTF is NOW.
How on earth are people in this situation going to survive?
That’s a great question with no easy or socially acceptable answers. There isn’t anything you can do about decisions you made in the past. You can’t undo the lease you signed on a place that skyrocketed in price, and then you couldn’t afford to move. If you’ve already used your credit card to buy groceries until you maxed it out, what’s done is done. You can’t change the price of gas, groceries, and utilities.
In retrospect, it may seem like you made a host of terrible decisions. But when you made them, the situation wasn’t like it is now. Your bills hadn’t skyrocketed. You hadn’t lost your job or had your hours cut. Beating yourself up for those decisions will not help you survive this.
If you feel isolated and completely at fault, of course, you do. That’s part of the insidious racket. Those responsible for this disaster don’t want to be held accountable for just how bad things have gotten for so many. So like an abusive spouse, they make you feel alone, like everything is terrible only because of your personal mistakes or stupidity.
You cannot see yourself as a victim of the economy – that mentality doesn’t help anyone. But you should quite clearly know that you are not alone and some of these things were out of your hands. This is what a financial collapse looks like in many cases. Millions of people suffering from humiliation when they can’t pay their bills, embarrassed, bruised, and feeling isolated.
You can’t control the economy, but you can adapt, even now, when things seem beyond repair.
(What do you do for food when your power is shut off? Read our free QUICKSTART Guide to find out.)
What can you do if you’re in the midst of your own personal financial collapse?
The situation may not be completely “fixable” if you are one of the millions of people struggling financially. You may emerge with your credit razed, your self-respect beaten and bruised, and a brand new ulcer from worrying about it all. But please remember that people have faced extreme financial hardship many times in the past, and while they may not have come out unscathed, they did come out.
Some of these tips may help.
Talk to your creditors.
If you owe money that you cannot pay to credit card companies, call them. They won’t be able to waive it completely, but many companies will close your credit account, thus halting any additional fees and interest, and set you up with a payment plan. It won’t do your personal credit rating any favors, but then again, neither will defaulting, and that’s where you’re headed. Here’s more advice on contacting your creditors.
Cut your expenses radically.
Making radical changes to your monthly expenses may help you get through this difficult time and pay off your debt. Getting a roommate, cutting down to just one car for the family, and other strategies could be enough to get you through it. Check out this article.
Learn new ways to feed your family.
Check out our new product, a PDF of more than 500 pages that will provide you with strategies to feed your family, no matter what your situation is like. It’s currently listed as a “name your price” item, so you can pay very little to get this valuable book if money is tight. How to Feed Your Family No Matter What is a guide to producing, acquiring, preserving, and preparing food when it isn’t as easy as just going to the store to get more.
You may have to walk away.
If things are really bad, the advice above may not be enough to save you financially. There comes a time at which you simply cannot pay your bills. You may have to default, get evicted or foreclosed on, hand back your vehicle, and start over again. You can’t make money come from thin air. If you’ve done everything possible and you still can’t catch up, then read this article.
Find gratitude.
This may sound ridiculous when you are in the midst of losing everything, but finding a way to be grateful for some blessing will help you dramatically. Here’s a look at radical gratitude, a practice that has personally helped me beyond belief in improving my attitude, which in turn helps me to be more creative and more determined to overcome my difficulties.
Only people who have experienced true hardship can understand.
Sometimes it seems like nobody gets it when you find yourself in utter financial destitution. Others seem to think it’s your fault, and they often make this very obvious. Those people clearly haven’t had the same experiences. If they had, they would have more empathy.
We’re in a situation right now in our country – and actually the western world – where more and more people are finding out just what it’s like to hit financial rock bottom. It’s a horrible feeling, but it will not last forever. Please keep putting one foot in front of the other. Be willing to accept a hand up. One day you may be able to help another person going through this.
And if things are still looking good in your world, please be kind. Not everyone who is struggling “deserves” it. Remember that, except for grace, it could be your family who is struggling right now. If you can, help someone without strings. You cannot attach yourself to the outcome of what happens with the assistance you have given. Just know that you have done a good and kind thing, and let go of your attachment to it.
Has the economic SHTF hit your household?
Have you been affected by the increase in prices or other economic struggles? Are you on the verge of losing the lifestyle you have worked for to the economic collapse? Do you have advice for others facing the same problems? Share your stories and thoughts in the comments section. And please, be kind.
- Preserve your retirement with physical precious metals. Receive your free gold guide from Genesis Precious Metals to learn how.
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About Daisy
Daisy Luther is a coffee-swigging, adventure-seeking, globe-trotting blogger. She is the founder and publisher of three websites. 1) The Organic Prepper, which is about current events, preparedness, self-reliance, and the pursuit of liberty; 2) The Frugalite, a website with thrifty tips and solutions to help people get a handle on their personal finances without feeling deprived; and 3) PreppersDailyNews.com, an aggregate site where you can find links to all the most important news for those who wish to be prepared. Her work is widely republished across alternative media and she has appeared in many interviews.
Daisy is the best-selling author of 5 traditionally published books, 12 self-published books, and runs a small digital publishing company with PDF guides, printables, and courses at SelfRelianceand Survival.com You can find her on Facebook, Pinterest, Gab, MeWe, Parler, Instagram, and Twitter.
Article cross-posted from The Organic Prepper.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
My other half is one of the Vietnamese Boat People who gave up everything to be spirited away from Vietnam where they lived on islands in Indonesia for about 9 months or so. We are both well aware of what they went through to get away from a tyrannical communist government.
If we allow Socialism and/or Communism to take over America without ever firing a shot, then we’ll deserve exactly what we get. Yes my friends, we are at war and the Biden Administration is at the heart of it as are the criminal legacy media as they support the criminality of what is happening in Washinton.
When we allow an Age Related Demented Fool to pretend to run our country then we have been hoodwinked with lies, upon lies, upon lies, and now they’re afraid we’ll come for them in a civil war. They darn well should be afraid, just as were the elites of Campuchia in the “Killing Fields”, where they were forced to labor in the fields or else.
This destruction began in earnest when guilty silly white people believed they would absolve themselves of the sins of RAYCISM if only they voted for the LIGHTBRINGER!
That was a very well articulated article. kudos to the author!