The Coming Economic Meltdown?

[Widowsmyte]

Babyl...

MY ex left me with a quarter of a million in credit card debt --- I have NO card, won't have one either.

It took me a bit of time to whittle that down, but there are those who seem to have a faux-paux view on the future (spending like there "will be NO tomorrow" as-it-were)... they are right, but not for those reasons. Irony eh?

[Free in Christ]

Many a pitfalls have been listed, and there are many more that we are all exposed to each an every day. We need to be aware of them and have a strategy to avoid them, not on our strength but Christ in us. Every spending decision should have a spiritual component to it.

I would like to propose that we help encourage each other to be prepared for this "meltdown." If the Church is still here when this happens, we could have a great opportunity to minister to those who didn't see this coming.

Lets give some practical ideas on how to be prepared. This meltdown could result in massive inflation and very high interest rates. At the same time the parable of the talents teaches us that God doesn't want us being ultra conservative and burying the money He has entrusted us with in a coffee can in the back yard.

Where is the balance and what can we do now?

I will start with an important principle: Living within your means.

[Chariots]

Practice bartering! It's fun and is a good idea to learn the value of services or goods now.

[vhowell]

On the other hand, for the most part no one makes anyone take on debt. The debt that gets most people into trouble...people choose to take on that debt (mortgage, car payment, credit cards).

You don't have to buy a house. You can rent, or save up and pay cash.

You don't have to buy a new car. You can save up and buy a used car, or pay cash.
You don't have to use credit cards.

This is true. But it's still a personal choice to go along with the culture.

Thanks. I was going to replace my 8 year old van, but now i will wait and see....it still runs fine....
However, i am SO amazed at all the new cars i see driving in my neighborhood....like there is a spending spree going on right now...
I won't be joining it. :thumbup

[adc]

Practice bartering! It's fun and is a good idea to learn the value of services or goods now.

What do you have? :heythere

[Chariots]

What do you have? :heythere

What do you need? :spy

I have a good customer I do auto repairs for that trades me Beef! We've been doing this for almost a year and it works great. I keep a spread sheet with the price on the hoof. Then each repair ticket acts as a credit. Neither one of us have to fork over the cash. Sometimes I'm working to pay off sometimes I'm working out a credit for a future beef purchase.

Developing a network of individuals you can trade with now is the best lessons to learn. See how many people you can start trades with. Next thing you know there is little need for money to trade hands. That is how our Great Grand Parents operated (without the spread sheet). Services for commodoties or goods for goods. Either way you learn a different way of valuing things.

[Free in Christ]

I put two months living expenses in "I" bonds. If massive inflation happens, as I think it might in the future, this will hopefully keep up with the cost of living. In all reality I think a person should have some gold too.

[jda303]

I am looking into investing in Euro based CDs. I also own some precious metals. I think the key is diversity of investment. Don't dump every extra penny into a savings account, spread it around in different areas.