Survive Economic Depression

The economy goes in cycles. There are up cycles and down cycles. We are in a down cycle currently, but the economy will pick up again one day and we'll be in another up cycle.

Most of the problems we are facing are the fault of greedy big bankers, greedy CEOs and corporations, and corruption in politics.

It seems we can't go a day without hearing some kind of bad economic news. Economic Depression and Economic Recession seems to be on the news and all over the internet everyday.

There is one important rule you MUST follow though: Don't panic!

It won't do you, anyone else, or the economy any good to panic. Stay cool, calm, and collected.

There are things you can do to save more money, stretch your dollar and survive and even thrive in the economic depression.

We survived all previous depressions, so there is no indication we won't survive this one either.

In fact, if you have money to invest, this is the PERFECT time to invest. Houses are cheaper than ever and stocks are cheap.

This is a good way to thrive in the economic depression is making a smart investment for cheap. 5 years ago the same investment would cost you 2 times as much or possibly even more.

So if you have any extra money, instead of being terrified of spending it, due to all the bad news, find some good investments and you'll make a lot more in a few years than you would if you just let it sit and do nothing with it.

If you are in the market to buy a home, this is the time to do it. The housing bubble crashed and house prices plummeted. While this isn't good news to sellers, it's a great opportunity for buyers. Now, you can get a lot more house for the money.

This is also a good time for thrift stores, consignment shops and second hand shops. More people are leaving the big expensive, corporate retail chains and heading to second hand shops to get more for their money.

Even during a recession or depression, there are things that people will always buy. People tend to cut back on luxury items, vacations, impulse items, new cars, and expensive non necessities.

But people will always be buying food, diapers, medicine and all other necessities and services such as home repair, child care, and elder care.

While we hear about so many companies losing money, the company Netflix has actually done great and had record breaking profits. That's because people are choosing to rent movies for a low monthly price instead of going to the movies.

The Great Depression-a time in American history that stands out and will never be forgotten.

It was terrible. The stock market crashed. People who had money in banks lost everything, because there was no insurance back then. Millions were out of work and desperate for jobs-but there was next to none.

Soup kitchens had long lines where people had to wait a long time just to get a free bowl of soup. Nobody had ever experienced anything like this before. It was a very difficult time where people had to band together and help each other out. People had to get resourceful and creative just to survive.

At the time it looked bleak and almost like it would never end.

But it did. The economy ended up bouncing back stronger than ever and all sorts of new industries, inventions, businesses and jobs were created.

Times are hard now, but it won't last forever and the economy will bounce back again one day.

Today we have it much better than the people who lived during the Great Depression. We have all sorts of technology that didn't exist then, higher living standards, and public aid to help people in need. There is welfare, foodstamps, and food banks.

In another way there were things that didn't exist back then that hurt us today. For example-car insurance. It's required and it can be very expensive. We have higher bills and higher taxes. We have a lot more expenses that those during the Great Depression did. It seems like there's a fee for everything and the people who lived through the Great Depression didn't have to pay all the fees and taxes and bills we do today.

There are things you can do however to survive and even thrive during the economic downturn and remember the depression will be over one day. And having lived through it, you will know steps you need to take to be prepared in case another depression happens so you will be prepared and not hurt by it.

There are several ways to cut back and change the way your are spending your money to save more of it.

The most basic step is getting a notebook and keeping a record of all expenses. And by all expenses, that means everything. Whether it's a bill or a snack, write down all expenses and make it a habit.

You might be surprised when you see the expenses notebook. You had no idea you spent so much here or there.

By having this notebook, you can see exactly where you can afford to cut back the most.

Some family members and friends are moving in together to save rent money. For example if there are 2 friends each paying $600 a month rent, they can move in together and their rent would only be $300 each, a $300 a month savings.

Some grown children are finding themselves moving back in with their parents after losing their jobs. They can live rent free and have shelter over their head while they try to find another job.

Here are some good ways to cut back and stretch the dollar:
-Buy less meats. Meats are more expensive than other foods.

-Buy generic brands instead of store brands.

-Buy the $2 shampoo instead of the $6 shampoo. You probably won't even notice a difference.

-Find free or cheap entertainment. Have family board games, go to the park, have a picnic or rent a move instead of expensive outings.

-Buy in bulk. This is cheaper than buying in small packages.

-Find a friend and go to the stores together to save gas. Take turns driving. For instance, you drive one week and your friend drives the next week. You'll both save on gas.

-Look for lower car insurance rates. Get quotes from several different companies.

-Buy clothes from thrift stores and second hand shops. Some of the clothes are like new and some are brand name and no one will even know where you bought it from.

-Give more homemade gifts for Christmas and birthdays instead of buying expensive gifts. You can also make your own cards instead of paying $3 for a yard.

-Reuse what you can.

-If you have an extra bedroom consider renting it out for some extra money each month.

-Find low cost recipes and use them.

-Make compromises. If you go to get your nails done every month, go once every two months instead.