How You Can Protect Your Family Financial Collapse

I read a great article over at Zero Hedge today, written by Brandon Smith, and originally posted on his site, Alt-Market.com, http://www.alt-market.com/articles/720-how-states-can-protect-themselves-from-financial-collapse titled "How States Can Protect Themselves From Financial Collapse"

The article dealt with how individual states can protect themselves from financial collapse. It was one of the best articles I’ve read as far as an action plan. Though Mr. Smith wrote it with states in mind I think it really applies to individuals as well.

1.     Stop Accepting Federal Funding was his first premise. As an individual that means preparing for life after government entitlement plans – regardless of how much we may have paid into the “lockbox” in Social Security and/or Medicare we have to prepare for life as if that money will never show up. (If it does bonus.) The same goes for Pell Grants, student loans, and even the GI Bill for college. If we couldn’t afford to go to school without these benefits are we in a financial situation to actually be in school? If you qualify for food stamps, what would life be like without them? If you don’t know how to grow a garden or put food up start learning now.

2.       Set Up a Personal Bank – Mr. Smith suggested each state set up a bank, modeled after North Dakota. I would suggest a different model at the family level, modeled after my favorite Command Sargent Major of the Army. In his family grandfather acts as the banker, when you want to buy a house the family pools the money, analyzes whether or not you’re a dirtbag, and if the house is worth buying. You pay back the family with interest and are expected to pony up your own capital to help others down the road. Is it going to work in every family? Of course not, but in the future 8% to the family may seem cheap compared at 12% at the bank.

3.       Resource Development – Mr. Smith makes the case that individual states that are resource rich will fare better than those that rely on the financial/government sector for revenue. As an individual I believe individual development transfers into having multiple skills. If you are able to fix garden implements, garden, plumb, fix automobiles, raise animals for meat, etc. and there does happen to be a currency meltdown, you’ll be better able to feed your family.

4.       Adopt Alternative Currency – Mr. Smith sited states making gold, silver, and copper recognized methods of payment. I’d suggest that we do the same as individuals. Start asking if people will take barter, bit coin or silver in exchange for goods or services. Even a polite no may still start a conversation.

5.       Encourage Localized Markets – If you’re not shopping at farmer’s markets, growing a garden in your back yard or at the community garden you really don’t have much room to complain about government regulation, poor quality food in your child’s cafeteria or the high cost of food. You’re funding all those things.