In View of an Economic Collapse

So how will you survive? I am not a doom and gloomer, in fact my focus is towards Christians and I believe that the Christian who has proper faith will rise and shine. However, many are not preparing for the battle ahead.

It is a known fact that during economic downturns millionaires are made, but it is just as true that many go broke. What side of the equation will you be on? In the related videos you will see that there are some troubling news that makes our horizon look dim. But for those who can keep their faith in tact and prepare they can be that glorious church that the Bible speaks of.

The days of getting a job and thinking that life is secure is over. I am highly recommending that people prepare themselves in a way that opens the door for God's blessings. You may ask how do I do this? Well it is actually very simple. Act like a mutual fund!

A mutual fund operates on the idea of diversification. Diversify yourself! Don't lock yourself into one income source, but open yourself to several sources so that if one sector is down another sector can still have an income stream.

Most people initially think that they have no skills and that the only way they can diversify themselves is to get multiple jobs. However, one will quickly learn that having multiply jobs will only lead to extreme fatigue.

I am going to list some things that you need to do NOW in order to prepare for the days ahead. Your ability to prepare and not assume that everything will be the same is going to be vital.

Your first objective is to get control of your cash flow. The number one reason why rich people are rich and poor people are poor is cash flow. The rich know how to control cash flow and the poor are poor because they don't know how. Most financial problems are caused by a lack of personal control over cash flow. The links provided will take you to resources that will help you understand cash flow.

Cashflow Quadrant: Rich Dad's Guide to Financial Freedom

Your second objective will be to GET OUT OF DEBT! Now I am not one who thinks that all debt is bad debt, but certainly having heavy credit card debt is a killer in financial terms. When you get control of your cash flow you can stop the ever increase rise in debt and start paying off those shirts, pants, and restaurant meals that you couldn't afford when you bought them.

There are tricks to the trade in getting your debt paid off. Don't try and reinvent the wheel get some resources and follow them! I personally like Dave Ramsey's strategy in getting debt paid off.

Dumping Debt

Now that you are getting the "out go" part of the equation fixed, you need to increase the income side of the equation. Personally, I don't think the "get a job and expect a check" is a very secure way of living. It's like putting all your money into one stock. If that stock goes bad then you are up a financial creek. This happened to many Enron employees.

What is the best alternative? As I said earlier - - diversify yourself. Most people have skills that are marketable that they never even thought about. If you will take the skills your currently possess, develop new skills, and then make yourself marketable you can achieve a nice diversified method of income. Personally I think that having the ability to have seven streams of income is the most ideal.

This doesn't mean that you have to be actively doing all of them at once, but you should position yourself so that you can immediately engage in one activity should another not be working. Let me give you an example.

A teacher will have their main source of income from their teaching profession. But right now many States are having difficult times and many state employees are experiencing payroll cuts. How can this same teacher diversify their position to create other income streams.

Obviously in a student/teacher environment there are always students who need a little extra help. A teacher can very easily set up a side business that offers tutoring help to those students who need help. Having your own business means that you can control your clientele. If you set up a business, but don't really need the money right now then maybe you will only accept one student at a time so that you are not overloaded. However, having your business set up means that if the state does cut your wages that you are immediately in a position to accept more clients. Waiting for the "need" of increased earnings will create a delay between "need" and "cash flow."

With this one simple step this teacher now has the ability to earn money from two sources. What if this same teacher enjoys taking pictures. There are a multitude of ways to earn money through photography. By taking a few classes and enhancing their skills they can easily be prepared to take pictures of weddings, outdoor portraits, or even take random pictures and selling them as stock photos. Maybe this teacher is not really interested in a full-time career as a photographer. However, being available to shoot 3 or 4 weddings a year while money is not needed will allow them to build a reputation so that if the need arises they are already in business.

What happens to this teacher if they go on strike? Losing $5,000 or $6,000 per month is a heavy cut, but if these two simple steps had been taken they very well made have saved their financial lives through tutoring and photography.

I could go one, but I think you get the picture. Maybe you have skills in car repair, computer repair, graphic design, tax preparation, website building, know how to trade stocks, buy rentals. The list is endless, but what does have a limitation is most peoples thoughts over their financial lives. Maybe you have an interest in one of these areas, start developing the skill so that it becomes marketable.

Are you the fixer upper type? Well instead of piddling around the house, why not by a house and fix it up then resell it? Doing one a year can bring in a sizeable paycheck. The key here is thinking outside the box and finding a way to create different streams of income. Having the ability to do different things will help you navigate the times ahead.

One of the biggest failures that many people make when it comes to finances is that they don't get connected. Having someone who can mentor you is an asset that can never be replaced.

I remember the first time I went to Russia. It was only my second time outside of the United States, when we left the international airport and entered the domestic airport I was so glad that I had at the last minute decided to invite a friend who had traveled overseas a lot. Having someone with you who has been there before is an invaluable asset. Hook in with someone. I've provided a couple of links of some very valuable resources: