Estimated reading time: 8 minutes
Hyperinflation is one of those events that is often warned about among preppers. Over the last two years, more people than ever have had their eyes opened to this issue with the supply chain problems experienced across the world. While the recent supply chain problems may not have been a direct result of hyperinflation, it did show people what it was like to not be able to purchase certain goods.
You don’t have to be a financial advisor to understand hyperinflation or how to prepare for it. When hyperinflation occurs, the cost of goods and services continues to go up while a person’s income remains the same. The result is that it takes significantly more money to purchase what you need. Or more simply, the money you have in your pocket isn’t worth the paper it’s printed on.
Several times in my life, I have heard that there is nothing you can do about hyperinflation except grind your teeth and get through it. I believe this is untrue and a dangerous idea. Like everything else in life, if you apply a little critical thinking, discipline, and action, you can be prepared for such times.
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One of the reasons there is a lack of preparedness among people is that they believe it is too expensive. You may not need an abundance of necessities now, but as time goes on you will. The problem with waiting is that those items may not be available when you need them, or in the case of hyperinflation, they may be far too expensive to purchase.
By stockpiling items that you will eventually use, you won’t have to worry about skyrocketing costs later. While everyone’s needs are different, below is a list of common items to stockpile that almost everyone uses.
Stockpile For Bartering
The effects of hyperinflation may require the need for a barter system so that people can get what they need. Although you may not need or even want the following items, it’s a good idea to have some “specialty” items on hand so that you can trade them for things you do need. Some examples include:
- Extra necessities such as food, water, or soap
Gain a Skillset
When people talk about bartering, they often focus on trading one product for another, such as some coffee for a dozen eggs. Bartering with your time and labor is sometimes neglected, but by gaining a new skill set, you will always have something to trade.
For instance, let’s say you need a battery for a flashlight but you don’t have any more physical items you can trade. However, the person who has an extra battery needs some of their clothes patched up and you know how to sew. One thing leads to another and after patching a few holes, you have yourself a battery.
The key here is to obtain skills that will most likely be needed and in demand during such a scenario. Popular skillsets to know include but are not limited to:
- Making clothes
- Engine repair
- Vehicle repair
- Generator repair
- Alternative energy setup, maintenance, and repair
- Food preparation and preservation
- Hunting and trapping
Build a Personal Library
Two things may happen during hyperinflation that will hit a lot of people hard. Access to the internet may be severely limited, or you may not have access to it due an inability pay the cable bill.
If this happens, how would you find answers to things you need to know about? Going to a library is always an option, but with so many people in the same position, it’s likely that the most useful books will be checked out and won’t find their way back.
Building a personal library now will allow you to always have access to pertinent information should the internet or even a public library become unavailable. Get titles that cover topics included in this article as well as other life skills, i.e. gardening, home repair, recipe books, survival skills, etc.
Invest In Precious Metals
As hyperinflation continues, paper money will increasingly become worthless. One way to hedge your bets against this is by investing in precious metals such as gold and silver.
While the price of precious metals does go up and down, historically speaking, they have always been sought after and have retained their value. Investing in “paper” precious metals may be okay during normal times, but if you are preparing for hyperinflation and other bad times, it would be best to invest in physical metals that you have access to.
Pay off Debts With Adjustable Rates
Debt. Most of us have it, and all of us hate it. Debt during hyperinflation will become a huge liability, especially for those with adjustable rates. Do everything you can to pay off as much of your debt as possible so that you are free from that burden.
If you can’t pay for something outright, there are two things you need to think about. One, ask yourself how much you need it; and two, make a plan for paying that debt off as soon as possible, and stay disciplined with that plan.
Change Your Lifestyle
There’s no doubt that during times of hyperinflation, most people’s lifestyles will change drastically. It’s better to prepare for that by making those changes voluntarily rather than when you are forced to.
Many of us have at least some expendable income that we use on things we don’t need. The added benefit of trimming the fat in these areas is that it will allow you to save money quickly or to spend it on things that will better prepare you for hyperinflation.
Decrease Expenses By Producing
We spend a lot of money on stuff, some of it we need and some of it we don’t. Have you given any thought to producing your own stuff as a way of reducing those expenses?
- Instead of purchasing a one hundred percent wool sweater, make it yourself.
- Instead of buying expensive emergency food, grow and raise your own sources of food.
- Instead of buying pricey soap that has harsh chemicals in it, make your own.
Yes, the above examples will have an initial start-up cost, but the savings and skills that you learn will be worth it.
As the previous section mentioned, one way to prepare is by changing your lifestyle and thereby save some money.
Alternatively, making more money is always an option. A lot of people instantly turn down this idea because they cannot take on a second or third job. But you don’t always have to go the traditional full-time job route.
“Side hustles” are small jobs that you can do in addition to a full-time job that may not take up all of your time every single day but will provide a little extra coin in your pocket. In fact, there are several ways to make money as a prepper.
Invest In Back-Up Energy Sources
When hyperinflation happens, it will hit very close to home, especially when the price of utilities goes through the roof.
Again, imagine living in your home without any power. What would happen if utilities were limited or you couldn’t pay for the services? How would you preserve food, cook, clean your clothes, and heat and cool your home?
Obviously, there are ways to accomplish the above tasks without the use of power, but there are also ways to have power that don’t require being tethered to the grid.
Investing in alternative power sources will allow you to still have some of the niceties in life without paying the increasing cost of being dependent on the utility company.
Some alternative sources of power include solar panels, wind turbines, and water turbines.
Again, people think that these options are out of reach due to their cost. But what isn’t realized is that there is a difference between our power needs and our wants. We don’t actually need hot water, we just like it. We don’t actually need a washer and dryer, we just don’t want to spend time washing clothes by hand or hang-drying them.
If you sit down and map out your energy needs, you may be surprised that people can get by with far less power than we desire. Here’s an infographic that shows where most of your home energy goes.
Q: Why invest in precious metals if the value of money is declining?
A: When hyperinflation occurs, it may only affect the currency of the country you live in and not the world at large. Therefore, precious metals may be worth more than your country’s currency, and they will certainly still hold their value in other countries.
Q: What if I invest in all these supplies and preparations and hyperinflation doesn’t happen?
A: Then that is good news on all fronts. You won’t have to deal with the financial and societal effects of hyperinflation, and most of the preparations talked about in this article only better your position in case something else happens. Plus, in regards to food, water, and other stockpiled products like medications or cleaning supplies, they will get used eventually anyway.
Hyperinflation may not sound like a big deal, but just look to recent events that happened in Venezuela to get a look at what life can be like. Put your money to good use now so that when times are not good, you won’t have to worry so much about your next meal or how to stay cool or warm.
Thanks for reading and stay prepared. What are your thoughts on preparing for hyperinflation? Be sure to leave a comment below and let us know what you are doing to prepare for it.
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