Be Prepared To Experience A New Type Of Lockdown

And take these 7 steps to minimize the risks

When you hear the word “lockdown,” you often attribute it to the pandemic and not being able to leave your house. Well, the new type of lockdown we are about to experience has little to do with the pandemic, but a lot to do with money as a result of the pandemic, inflation, and now war.

Let’s face it, the world is a mess right now. Putin’s ego and narcissistic behavior have the world living in fear, inflation rose to 7.9%, gas prices are through the roof, and just this last week, President Biden warned of food shortages and said “It’s going to be real.”

As a result, we should be prepared to experience a new type of lockdown — a lockdown not related directly to the pandemic, but one related to just how messed up the world is right now. As a result of war, inflation, sanctions, etc., we should be preparing ourselves for a financial lockdown.

I’m not going to lie, despite recently receiving a 28% increase in my income, all of this talk still has me stressed and worried. You can’t even turn on the TV without being reminded of how messed up the world is right now, what the future might look like, and what disaster might come next.

So far, it’s not looking to be the 2022 we were all hoping and praying for…

With all of that said, I don’t want to scare you any more than I already have. Instead, I want to help you prepare for what we might experience over the next year.

Here are seven things we should all be doing to prepare for the next wave of lockdowns we are likely to experience.

#1 — Establish a $1,000 emergency fun

Everybody has been and is going to continue to be impacted by food shortages, inflation, and war. To best prepare for anything that might come about in the months ahead, the first step is to create a $1,000 emergency fund.

Thank you Dave Ramsey for this advice.

Honestly, though, even without all that’s going on in the world, everybody should have a $1,000 emergency fund because emergencies happen all the time and are unpredictable. You never want to get to the point where you are having to wait for your next paycheck to pay off any emergencies that might arise.

To be clear, emergency funds are meant to cover expenses such as medical emergencies, your car breaking down, or something that directly impacts your ability to live. This does not include an emergency shopping spree or dinner out with friends. Use your emergency fund for EMERGENCIES ONLY! If you don’t need it, leave it. If you need it, use it and replenish it with your next paycheck.

#2 — Pay off as much existing debt as possible

If you don’t have any debt, you are ahead of the game. Unfortunately, the average American carries about $90,000 in debt. This is between credit card debt, student loans, auto loans, personal loans, and mortgages.

Really, the only kind of debt that should be considered “acceptable” is a mortgage. If you carry credit card debt, or if you have student loans, car loans, or personal loans, pay that off as quickly as possible. Put your head down, stop spending money on things you can’t afford, and pay off as much existing debt as possible. Not only is this going to be incredibly liberating, but it’s going to put you in a much better financial situation should you find yourself experiencing financial difficulties.

The point here is to have as little debt as possible. In a world where everybody is already stressed, the last thing you want is to carry any more stress as a result of poor financial choices.

#3 — Start minimizing your spending

Listen to me carefully… STOP BUYING THINGS YOU CAN’T AFFORD!!!

If you can’t pay cash for something (other than a house), don’t buy it. Credit cards have ridiculously high interest rates. Not only are you going to have to pay back every penny you put on a credit card, but if you are late on your payments, you will also be responsible to pay any late fees and interest on the amount you borrow. To give you some context, most credit cards have a 20–30% interest rate.

If you can’t afford to pay off your credit card, I’m guessing you can’t afford to pay the interest either.

So, what do you do? Again, STOP BUYING THINGS YOU CAN’T AFFORD!!!

Start minimizing your spending. This doesn’t mean you need to stop enjoying life, but stop making unnecessary purchases. Minimize the amount you’re going out to eat, the trips to Target, and stop buying things on Amazon.

Personally, I give myself an allowance. I give myself $200 per week to spend on things I don’t necessarily need, but things I want. I only started doing this after I paid off my debt and once all of my monthly expenses have been paid. Not saying you have to or should be doing this, but it’s helped me avoid making meaningless purchases.

#4 — Find ways to make more money

You’ve likely heard this before, but the average millionaire has seven sources of income.

Most of us rely on one or two sources of income. But think about it, if you were to lose your job tomorrow, would you still be able to provide for yourself? Would you have any money coming in?

Not only do more streams of income equate to more money coming in, but if you lose one stream of income, you have other streams of income established that help to keep money coming in. Needless to say, you aren’t as dependent on one source of income and will suffer less if you have several streams of income established.

Now, there are a lot of things you can do to make more money. My favorite way to make money is by writing here. It’s not a get-rich-quick method, but writing can create consistent income.

I started writing consistently in December of 2021, and since doing so, I made an extra $150 in January, $240 in February, and $330 in March.

Here are some other side hustle ideas for you to check out:

#5 — Start buying food in bulk

I was watching a YouTube video from Glenn Beck this past week, and one of the recommendations he made to compensate for the upcoming food shortages is to start buying double at the grocery store.

Now, I’m not sure this is a good idea, or even necessary, but one way to save money is to buy food in bulk. Instead of going to the grocery store every day like I do, start buying enough food to last one or two weeks at a time. Not only will this help save on gas driving to and from the grocery store, but the more you buy in bulk, the cheaper each meal comes out to be. Plus, it helps prevent impulse purchases if you aren’t going to the store as much.

#6 — Reduce the amount you are driving

As much as you can, try to reduce the amount you are driving. Gas is incredibly expensive right now, and it doesn’t look like it’s going to go back down anytime soon.

If you live in a city, this shouldn’t be difficult for you. Start walking or biking to more places, or take public transportation. Not only will you be spending less on gas, but it’s also good exercise.

If you live in the suburbs or a rural area, this can be a bit more challenging. But one thing you can do to save on the cost of commuting is by carpooling with others who are going to the same location as you. Yes, this might require you to be friendly to your neighbors, but if you are commuting 50 miles each day, this really is a no-brainer.

#7 — Save, save, save

Lastly, the best thing you can do to prepare for a financial lockdown is to save, save, SAVE!

Seriously, save as much money as you can. Once you have paid off your debt and built an emergecy fund, save. You never know what the future holds, when you might need some extra cash, or if you’ll have a job tomorrow. Saving now is the best thing you can do to prevent financial hardships in the future.

Start following these tips to help reduce the severity of the new type of lockdown we are likely to experience.

If you have any other ideas for how to save money or reduce the amount of uncertainty we are experiencing, let me know.