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As the US government prepares itself for its worst ever financial period with the dollar depreciating rapidly and the foreign countries selling off their bonds, there is a scurry for finding refuge. The government is becoming cash hungry by the second and releasing more and more fiat money into the economy. This situation will compound over the coming months and the cost of essentials and luxuries will shoot up like anything. On the contrary your wages will remain the same or worse, you will be asked to quit. So how can you prepare for this financial doom? Here are 3 simple tips:
1. Pay Off Your Debts
With the advancement in time as hyperinflation looms nearer, your debts will become harder to pay off. A situation will arise where you will need a major part of your income (if not the complete income) to buy food and other necessary items for your home. Imagine being slapped by a notice for losing your home or car at that time because you are incapable of paying the debt back. This is why experts have been recommending that you must look to settle off your mortgages, car loans, student loans and any other outstanding credit card bills at the earliest.
2. Limit Your Credits
Continuing from the previous tip, experts are also recommending that you must bring down the credit and loan requirements for you and your family. Opt for a smaller home in case you are taking out a home mortgage. Try to settle for your old car and avoid taking out a new car loan for your dream ride. Also limit expenditures that you incur with your credit card. These practices will help you in cutting down on your future expenses in the form of loan repayment and interest payment. Thus you will be having more money for the essentials.
3. Invest In Inflation-Proof Industries
In reality, there is nothing known as a completely inflation-resistant industry. But in practice, you can see that there are a host of industries that seem to be inflation-resistant in the form that they raise their prices or adjust their values with fluctuating prices. It is recommended that you identify these industries which seem more or less sustainable in the mid-range term and then start channelizing your investments towards them. The telecommunications industry, the oil and metal industry and the Treasury Inflation Protected Securities (TIPS) are some of the options you can ponder on. Couple these tips with a host of other self-sustaining and family and community planning tips, and soon you will have a decent enough financial stature to fight off the hyperinflation in the United States.
Brenda Lyttle is a financial expert and a researcher on the much-talked about hyperinflation in US. You can read more about this on Essential Finances Hyperinflation section.