How to Survive The Great Depression

I thought it would be interesting to talk about how to survive the great depression considering how I already added a group of great depression articles to this site.

The great depression was the worst economic disaster to happen to the world. Where will you be if it happens again? Did you know that it is possible to not only survive the great depression, but to thrive in it?

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It’s true, if it ever happens again there are 10 ways to survive the great depression and hopefully maintain the same quality of life while doing it.

The stock market crash of 1929 marked the beginning of the end for the world’s financial picture. First the stock market crashed then people lost their money leading to a string of other events.

But you don’t have to lose your money just because stocks go down. Short selling stocks is the process of borrowing stock from your broker now, selling it on the open market, and buying it back for cheaper later. In short you reverse the whole buy low sell high saying to sell high buy low, letting you make money as stocks go down.

Short selling during the depression is what brought Jessie Livermore’s fortune over $100 million dollars in 1929 and helped to give him the title of Greatest Trader Who Ever Lived.

You hear it all the time, “keep 6 months cash in reserve at all times.” That is great advice, but if the world is going to heck and your unemployed for 4 years that isn’t going to help out very much.

Instead start looking for other ways to bring in an income, write a book, do some counseling, create an online store, etc. The idea being, if you lose your job during a massive layoff you will still be alright because you will have other income sources coming in. Some income is better than none.

Banks were the first things to fail during the depression. The FDIC secures up to $100,000 per depositor, so never keep any more than that inside a bank account. Also remember, in a depression it may be harder to get any money from the FDIC if your bank goes under simply because, nobody has any money.

Instead keep your money into something solid such as gold, stocks, and real estate.

Ideally you want to try and pay down your debt before any major catastrophe happens. This way you do not need to make as much each month to sustain life.

One of the most interesting facts about the great depression is that both the movie and the cosmetic industries boomed during that time period. A booming industry means a demand for workers, so they will probably be the easiest place to find a job.

In today’s society you could probably add the video game industry to the list.

Another way to survive the great depression is to rent out any spare rooms. A lot of families were able to keep their houses by taking in the homeless and having them pitch in to help pay the bills with whatever money they did have.

One other thing people did to survive the great depression was to grow their own garden. This allowed them to cut down on the cost of food and to prevent themselves from starving to death simply because they had no money.

Going on the same logic if you can hunt and fish you can also cut back on food expenses. The cave men were able to survive without money somehow. Going back to your roots for a little while might not be such a bad idea.

One thing people did to survive the great depression of the 1930’s was to band together. If another family can’t afford to pay their mortgage and is going into foreclosure, why not invite them to stay with you and have them help you out however they can?

You might even pull together your food budget with someone else if it will legitimately lower the cost of food for both of you.

Even in the depression there is opportunity. If you have followed these tips you are probably doing pretty well despite the world’s economic disaster. Use some of that extra money to buy stocks and real estate while the prices are low.

Who knows, you might just come out of it in a better financial situation then when you went in.