Yes, what does one do to prepare when they don't have any savings at all and are barely getting by already? Start stocking up on canned foods, hoard meds, and buy a tent?
The specifics for building your own resilience will depend a lot on your personal situation (dependents, income, climate, local connections, health, etc). You may be able to grow some food, or start preserving what you can get for cheap. There’s a service for sharing common area fruit trees and stuff like www.fallingfruit.org
Aside from poverty finance tricks you can find most places, the only protection against hyperinflation is certain tangible assets. Traditionally, gold, jewelry, land, real estate, etc. They're in no way immune to it, but they give you options when things are really bad. Example: sell the land, other real estate assets to buy a plane ticket somewhere else, bringing the gold with you to sell at the destination and get set up.
A small food prep and simple preparation methods can also help you weather some challenges.
A slightly more difficult but better bulwark is mutual aid and organizing. A community kitchen and prep is better than people only having their own stuff. But that does take more organizing work.
Naturally I am not a financial advisor and this is not advice - and bear in mind I am very good at losing money, but….Generally bonds are shitting the bed right now - the bond market is performing at its worst in 40 years. There’s not really any safe haven assets, everything is down.
If you have savings beyond an emergency fund, and don’t mind sitting on the money for a year Series I Savings Bonds might the best of a bad bunch of options. They track inflation, and the restrictions on them post-12 months of holding aren’t too bad:
I bonds earn interest for 30 years unless you cash them first. You can cash them after one year. But if you cash them before five years, you lose the previous three months of interest. (For example, if you cash an I bond after 18 months, you get the first 15 months of interest.
I’m trying to gradually ladder my emergency fund into them, unless I have to draw it down this year (which honestly looks likely).
I’m bracing, for a long, grinding bear market with stagnant growth after that. I can’t see how a positive picture for the economy will emerge in the coming couple of years.
So uh, what do? How does the average person prepare themselves? If I've got any savings should I yeet them into bonds and wait?
Bit early to buy bonds, as the interest rates are still incredibly low from Fed cheap lending policy.
Yes, what does one do to prepare when they don't have any savings at all and are barely getting by already? Start stocking up on canned foods, hoard meds, and buy a tent?
The specifics for building your own resilience will depend a lot on your personal situation (dependents, income, climate, local connections, health, etc). You may be able to grow some food, or start preserving what you can get for cheap. There’s a service for sharing common area fruit trees and stuff like www.fallingfruit.org
Aside from poverty finance tricks you can find most places, the only protection against hyperinflation is certain tangible assets. Traditionally, gold, jewelry, land, real estate, etc. They're in no way immune to it, but they give you options when things are really bad. Example: sell the land, other real estate assets to buy a plane ticket somewhere else, bringing the gold with you to sell at the destination and get set up.
A small food prep and simple preparation methods can also help you weather some challenges.
A slightly more difficult but better bulwark is mutual aid and organizing. A community kitchen and prep is better than people only having their own stuff. But that does take more organizing work.
Don't keep them in cash. Buy index funds, and hold them. Do not sell unless absolutely necessary.
Cash. High yield savings rates should hopefully come up soon if the Fed makes a big hike. Bonds still probably have room to fall.
Don't panic sell anything, but cash is king they say.
Naturally I am not a financial advisor and this is not advice - and bear in mind I am very good at losing money, but….Generally bonds are shitting the bed right now - the bond market is performing at its worst in 40 years. There’s not really any safe haven assets, everything is down.
If you have savings beyond an emergency fund, and don’t mind sitting on the money for a year Series I Savings Bonds might the best of a bad bunch of options. They track inflation, and the restrictions on them post-12 months of holding aren’t too bad:
I’m trying to gradually ladder my emergency fund into them, unless I have to draw it down this year (which honestly looks likely).
I’m bracing, for a long, grinding bear market with stagnant growth after that. I can’t see how a positive picture for the economy will emerge in the coming couple of years.