When I told UrbanMan what I have been doing the past month and wanted to write about it, at first he was a little skeptical but relented after I sent him some stuff to read. UrbanMan’s note: I took the liberty of editing Jim’s letter just a little before posting here. However, it is substantially the same as what he sent me. For the past two months I have been in crazy mode reading stacks of books and on-line information concerning economic collapse of nations as well as the predictions of the collapse of this country; and, historical information and data on currency failing, recessions and depressions; etc. I am sure most of you know that the life span on non-gold backed fiat currency is about 40 years. We are past that, and we (the U.S.) is heading for a reckoning.
Maybe you stop there in your research and study on economic collapses,...I didn't. There is no doubt that a currency collapse is coming. It doesn't matter if it is caused by the devaluation of the dollar or by other economic factors. This has taken place all throughout history. We (the United States ) set this course when we took the dollar off the Gold standard. This is an irreversible course now. What this generates, other than pain and suffering, is a giant
re-distribution of wealth......and benefits those who are prepared. Sure, the first order is to get prepared for a total collapse - this is the most dangerous scenario - where the infrastructure is gone and doesn't come back. The ability to protect yourself and your family; survive the hardest period of degradation; have the material and skills to live - grow your own food, etc., are essential,...and again the first order to business.
But what if the collapse is a gradual collapse and rebounds in some fashion, albeit with a different currency and maybe backed by precious metals?
I work as a computer programmer, on contract to the Government, and make a good salary. However, most of my wealth (currently about 65%) comes from my network marketing business. Since I have minimal expenses, other than buying survival equipment, gear, guns and food - ha ha the same boat we are all in, but I don’t have a wife I have to placate. I have taken much of my available money and have bought much more Gold and Silver.
Again, herein lies the rub,…most people are planning for a chaos; an end of the world scenario and are not planning for a rebound sometime in the future. I wasn’t prepared for anything previous to one year ago, now I am somewhat prepared for a worst case scenario. Like I said, I have bought quite a bit of Gold and Silver over the past month as well as long term survival food. I have also purchased a food saver and vacuum packed twelve buckets of food and counting. I am going to buy a couple more firearms and probably trade my old Toyota RAV in for a new and larger pickup or SUV.
The experts I have been reading,....R.G. Allen, Robert Kiyosaki, Gonzalo Lira, Mike Maloney, Mike Dillard, and more recently the National Inflation Association, Porter Stansberry, and Sandy Leeds,….all have great things to say about what you can do to prepare yourself to come out the next crisis (and it will be a big crisis) if, in fact, this coming collapse will have an upswing in the short or long term future. Most of the advisors and experts I read say to buy Gold and Silver (done, but I’m still buying); stocking food (done, but still I’m still buying and stocking); make a Survival plan (done, but still evaluating it and will changes if necessary); and, develop multiple streams of income (done, but still building my networking marketing business) – almost everyone has, or can develop or can sell a product, services or information (PSI) – a good book on this is “Cash in a Flash” by Robert Allen and Mark Victor Hansen. So I am expanding my multiple streams of income, not only to provide more near term income for survival preparation, but to position myself to come out of the giant redistribution of wealth on the high side.
I advise all of you reading this, who are obvious interested in planning and preparing to survive a collapse, to look at developing additional streams of income – this is the Multiple Streams of Income concept so you make your financial situation more stable and therefore better able to take the disruption of losing one or more streams of income. Again look at PSI (Product, Services and Income) as almost everyone has something they can do to create more income. Know the difference between linear income and residual income. Linear income is money earned for performing work for a period of time. Residual income is money generated time and time again from one period of work.
As an example, I know a lady who makes custom greeting cards. This is her passion. She is now marketing them to friends and to friends of her friends. I advised her to start a website or blog site to advertise her cards and generate more business. UrbanMan for instance, generates income from teaching firearms and related classes to private citizens. I know yet another person who does property inspections on the side to generate linear income. Many different ways, beside the network marketing business that I do, to create Multiple Streams of Income. Take a personal inventory of your skills and capabilities then look at your options. Get prepared, not just for the total collapse but prepare to come out of a collapse on the top side of the wealth redistribution curve. Good luck.