Preparing for the End of the World as We Know It
About a decade ago, a client came to me with a critical request: How could he prepare for the unexpected—whether a natural disaster, economic collapse, or worse? After presenting my research, he jokingly said, “I should call you Mr. Worst-Case Scenario.”
This conversation came to mind recently as I reflected on the importance of preparing for all types of crises. Whether it’s a pandemic, financial meltdown, or a major environmental event, the lesson remains the same: nature and the economy don’t care if you are prepared.
Pandemics spread. Fires burn. Earthquakes shake. Cyberattacks disrupt. Volcanoes erupt. Hurricanes and tsunamis destroy. A large meteorite or a solar flare could change life on earth forever.
The same goes for systemic economic collapses, cyberattacks, or chain reactions of mega-bank failures, which could disrupt the infrastructure we take for granted in a matter of days.
Defining a Worst-Case Scenario
The worst-case scenario is an event or series of events that leaves you and your family, along with thousands or millions of others, in an environment that roughly matches the one our ancestors lived in a couple of centuries ago. No electricity, no gas, no running water, no ATMs, no organized police force, no supermarkets.
But it would be worse than our ancestors’ experience because we’ve largely forgotten the knowledge that kept them alive in that environment. Conditions could deteriorate to the point where roving gangs of desperate survivors hunt for food, water, and habitable shelter. Think about how you would survive in the wake of an event that left civilization in ruins—a scenario like the one portrayed in shows like The Walking Dead.
Stay or Go? Deciding on Shelter-in-Place vs. Evacuation
Once you’ve defined what a worst-case scenario looks like for your family, the next crucial step is deciding whether to stay put or evacuate when disaster strikes. That obviously depends on the circumstances. While staying put during a Category 5 hurricane, major flood, or wildfire could be fatal, in many other scenarios, sheltering in place and making your home a hardened target is often the more practical choice.
However, it’s wise to have an escape plan as well. Consider buying property at least 100 miles away that you can use as a vacation home or retreat in times of crisis.
For most people, fleeing is a last resort. But to shelter in place, you need to be as self-sufficient as possible. You’ll need food, water, a source of energy, weapons, ammunition, money, medical supplies, and backup energy sources like generators or solar power systems. And if you plan to evacuate, you’ll want to have the same supplies securely stored at the bolthole you plan to escape to.
Keep in mind the supplies you need might become unavailable or unaffordable in a crisis. For instance, during the early days of the 2020 Coronavirus pandemic, surgical masks became up to 100 times more expensive than usual. This illustrates how important it is to accumulate essential items before a crisis hits.
What Happens When the Economy Collapses?
Once governmental authority over a city, region, or state ends or is severely curtailed, armed gangs or private groups may take over. In the best case, they’ll step in to provide security in exchange for taxes or payment. In the worst case, they’ll loot and pillage unprotected property in the areas they control.
Assuming there’s at least some economic activity occurring after the disaster, you need to be prepared to barter for essential goods and services such as medical care. Stores may be closed or looted, and banks and ATMs will likely be shut down.
In a barter economy, items like bleach, medical supplies, and toilet paper could become valuable commodities. Whisky and other alcoholic beverages have historically been used as currency in such situations. Gold and silver can also be excellent forms of barter, and they retain value in long-term crises.
Building a Crisis-Proof Network: The Importance of Community
Your survival plans should include a network of people you trust who can help you, and whom you can help in return. For instance, what will you do in a medical emergency if you or a family member isn’t a doctor? You’ll want to tap your network for help and to barter for essential services.
Community is key to survival. Establish relationships now that can support you and your family during a crisis. It’s also important to build trust-based alliances with like-minded individuals in your neighborhood or broader community.
Having a prepared group will greatly enhance your chances of survival and make it easier to access skills or resources you may not possess. The value of social capital can’t be overstated when traditional financial and government systems collapse.
Preparing Financially: Strategies for an Economic Disaster
Financial preparedness is just as important as securing physical supplies. Here are steps you can take to protect your wealth:
- Diversify your investments. Ensure that you hold tangible assets such as precious metals, domestic and foreign real estate, or cryptocurrency. These can be valuable if traditional currency loses value or becomes unavailable.
- Use offshore bank accounts. Opening non-US bank accounts can protect some of your wealth from local economic disruptions. Many people are turning to cryptocurrency as a backup financial system.
- Avoid reliance on traditional banking systems. With banks and ATMs likely inaccessible in a worst-case scenario, it’s important to have physical cash or alternatives like gold, silver, and tradeable goods.
Long-Term Skills and Sustainability
Preparing for the end of the world as we know it isn’t something you can do overnight. But start your preparations now, while everything is “normal.”
In addition to supplies, focus on acquiring long-term survival skills. Learn how to grow your own food, generate your own power, and provide basic medical care.
Sustainability is key. Consider moving towards a self-sufficient lifestyle that you can maintain even if disaster doesn’t strike. Simple habits like learning basic mechanics, first aid, or food preservation can go a long way in improving your preparedness.
Begin Your Preparations Now
Building a crisis-proof lifestyle is about long-term resilience, not just short-term survival. Start your preparations while everything is calm. Make a checklist of what you think you’ll need, and begin to accumulate supplies and skills gradually.
Also, consider joining a preparedness group or online forums where you can exchange advice and skills. Building connections with others will be one of your greatest assets in a world where traditional systems have collapsed.
Need Help?
Since 1984, we’ve helped more than 15,000 customers and clients protect their wealth using proven, low-risk domestic and offshore planning. To see if our planning is right for you, please book a free no-obligation call with one of our Associates. You can do that here.
