Surviving an economic downturn without liquidating your investments

Preparing for an ongoing recession has been a part of life for the last several years. The good news is that a lot of people have figured out how to do it, and we've all gotten pretty good at cutting back on spending or making do with less.

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Still, there's no question that this recession will be harder than most. Some folks are still going to get hit hard. And in some cases, it's not just about losing income; it's also going to be losing some of what savings they had built up over the past few years.

So here are my thoughts on how to prepare for a long-term downturn:

Save as much as you can right now.

Even if you're at your financial limit today, make sure that you try to save money somehow. There's nothing worse than having a hard time paying bills because you didn't save enough when things were good. This is especially true if you're living paycheck to paycheck already. That means that you'll need to cut back even more drastically than usual. If you're used to eating out every night, maybe you stop doing so until you've saved up enough.

A job loss could mean that you have to start looking for a new one immediately, which means that you'll have to pay for transportation. Unless you're willing to live without car insurance or gas, you should probably skip the car payment for now, too. It might feel really tough to give up things like that, but if you don't, then you'll probably end up eating canned beans and ramen noodles anyway, so why not just make sure you have a little extra for emergencies?

Make sure that you have access to cash.

Banks aren't likely to continue lending to businesses much longer. You can't count on any credit card companies extending lines of credit. So make sure that you have a way to get cash. For example, you can keep some cash around for emergencies. Especially when you barely used it, since you might prefer to use your debit card for everything.

Or you might have a couple of hundred bucks hidden away somewhere. It doesn't matter where it is, so long as you know how to reach it. But try to find something that you can access quickly. That's important because banks won't likely be able to tell you exactly when they'll shut down their ATMs.

Start planning for a bigger emergency fund

Plan for one that you never thought possible. I know that many people have started thinking about an emergency fund over the last few years. But if you want to survive a long-term economic collapse, you're going to need at least three times what you think you need. And even then, you might still run into trouble.

Stock up on food.

Food prices are definitely going to increase, probably substantially. There's a big difference between getting a 20 percent price hike from a grocery store and seeing that same percentage jump across multiple categories. So stock up now on staples that you can easily store.

Think carefully before buying anything else.

What do you really need? We've all gotten pretty used to having a lot of stuff around us. But what would happen if you gave up all of your excess junk? You'd probably be amazed at how much space you suddenly have available. And you wouldn't have to spend money on storing it.

Start thinking about alternative ways to earn money.

The Internet offers a ton of opportunities for earning money from home. So take advantage of those. Try to learn new skills. Maybe you'll make a great website, or perhaps you'll become a social media expert. No matter what you decide to focus on, you'll have a much better chance of surviving if you're able to supplement your income.

Organize your finances.

If you haven't done so recently, now is the time to go through your bank statements and credit card bills. Look for areas where you might be wasting money. Then figure out how to fix them.

Conclusion

Many people don't realize just how fragile our economy truly is. In fact, most people probably aren't even aware that we're currently in a recession. And yet, it's a very real threat. As a result, you need to prepare yourself as much as possible.

The good news is that you don't have to wait until the worst happens. By taking action today, you can protect yourself. So start considering these tips right now. Because the longer you wait, the more difficult it will be to get ahead of the curve.