The rising cost of living and inflation have many people fearing that a future economic recession or even a depression could be on the horizon.
The Great Depression was a very difficult time in American history. It lasted from the late 1920s up until the start of World War II, and America’s GDP fell by more than 30% while unemployment skyrocketed to over 20%. It represented the single biggest economic downturn in the history of the United States.
It’s important to remember, however, that not everybody became poor and lost money during the Great Depression. On the contrary, a lot of people were able to make money and even become rich.
The point of this is to show you that even if a future Great Depression strikes, there will still be ways for you to make money, or at the very least to barter and trade.
In this article, we’ll cover how people were able to become rich during the Great Depression, and then we’ll give you a few ideas for how you could make money or trade in a potential future economic collapse.
Who Got Rich During The Depression?
There’s an old saying that the rich can always figure out ways to become richer. Believe it or not, more millionaires were made during the period of the Great Depression than any other time period in American history.
While the most commonly accepted start date of the Great Depression (according to most historians) is 1929, the truth is that the seeds leading up to the infamous Stock Market Crash were already being planted in the years prior.
Long story short, too much credit was being extended to people and businesses to the point that the amount of credit given exceeded the available cash in the economy.
It was only a matter of time before companies and individuals alike could no longer afford to pay their credit bills.
This resulted in a complete collapse of the banking industry and the housing market.
Those who had liquid cash available, however, took advantage of the collapse in prices. They began buying up companies, property, and homes, and they also invested heavily in companies that were making in-demand products.
A few years later when the stock prices of these companies began to increase, and when the value of property and homes began to increase again, these people got rich… very rich.
How Can You Get Rich During a Future Depression?
So what’s the lesson to be learned here?
Simple: avoid becoming trapped in credit debt and start stashing cash away. The biggest trap you can find yourself in is to not have enough cash to help get you through an economic collapse because you’re spending too much on your monthly debt payments.
A big fall in housing prices will be the best time to buy property, because the value of the property is sure to increase again in a few years. The same goes for stocks. But you can only buy property or stocks if you have cash set aside.
Unfortunately, far too many people are trapped in the exact same predicament that many were trapped in during the Great Depression. Too many people today are drowning in debt, such as credit card debt, auto loans, personal loans and make just enough money to pay the minimum monthly payments on these bills.
What’s going to happen to these people when the next Great Depression hits and the banking industry collapses? As the old saying goes, history repeats itself.
So what should you be doing? Simple: pay down your debts as fast as you can, and set aside as much cash as you can.
How Can You Make Money During A Future Great Depression?
It’s also important to remember that even if you don’t become rich in a future economic depression, there are still ways you can make cash or trade to help yourself stay afloat.
Here are a few ideas:
Foraging And Selling Berries
Head out foraging to collect wild berries that you can sell or trade. Berries will always be in-demand because of the variety of foods and beverages that they can be included in, such as pies or juices. Just make sure you have the right knowledge about which berries are edible and which ones are not.
Chopping And Selling Firewood
Do you have a forest on your property? If so, then you can easily chop down and sell firewood. Anyone who has a wood stove in their home will be a possible customer.
People will still want their homes to be clean after an economic disaster. Consider offering your house cleaning services if you have the skills and the time. You can consider using DIY cleaning products if you find the pricing of store-bought household cleaning items has gone up beyond your budget.
If you raise chickens, selling eggs will be a very viable way to make extra cash during a future economic depression.
People like their eggs because they’re a good source of protein, so the demand for them will still be high during difficult economic times.
Renting Out Rooms In Your House
An economic depression means that rental costs may skyrocket and leave many people scrambling for a place to live that they can afford the monthly rent on.
If you’re comfortable renting out rooms in your home, it will be a perfectly viable way to make money. Just make sure the people you’re renting out to can afford to pay their rent.
Hunting and Selling Meat
If you’re a skilled hunter, you could go out hunting and get meat that you can butcher and sell later.
Meat will always be in demand so you’ll always have people willing to buy or trade even during an economic depression. Besides the meat itself, you could also sell the fur and hides you collect as well.
Clothing will become a more precious commodity in an economic disaster as people will focus more on repairing the existing clothes they have rather than buying new ones.
If you have any skills with mending clothing, consider turning it into a way to make extra cash.
Growing And Selling Vegetables
Growing vegetables in a garden is an excellent way to ensure you can be self-sufficient. Consider selling or trading your vegetables to other people as well, so long as you are growing enough vegetables for your family already and have enough left over that you can afford to give up.
Selling Baked Goods
Do you have good baking skills? If you can make bread, cakes, cookies, muffins, or any other kind of baked goods you’ll likely always have someone willing to buy or trade following an economic collapse.
There are many other ways to continue to make money or trade during an economic collapse beyond the ones we’ve discussed above, but hopefully this list has given you an idea of things you can do.
Finding yourself stuck in debt and not having enough cash reserves to fall back on is the worst position you can be in leading into a future recession or depression.
Start paying down your debts and setting aside money as fast as you can, and keep in mind that there will always be ways that you can trade or make money even following an economic crisis. All you have to do is get a little creative.
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