How To Prepare for Hyperinflation

100 Trillion Dollar Bill from ZimbabweDarn, that’s a scary concept, isn’t it? The concept of spending millions of dollars for a haircut? A hundred million dollars for a loaf of bread? The cost of staples going up and up – and up! – so rapidly that you’ll have to bring your money in a wheelbarrow?

Relax, at least a little. Experts at the Federal Reserve Board (or the Bank of England, or the European Central Bank) will make sure that doesn’t happen. Won’t they?

In any event, you need to be prepared. Here’s how to prepare for hyperinflation.

  1. First of all, know the warning signs
  2. Hyperinflation is defined as rapidly worsening inflation: so rapidly that you find prices of everyday items going up daily. (One simple definition – if stuff doubles in a year or two, you’re looking at hyperinflation.)

    But if you’re in the middle of it, you might not be able to see it while it’s happening. It’s a good idea to save receipts and take a monthly look back at staples. Does gas go up by 10% each month? Does bread actually double in price over a period of a year?

  3. Don’t trust the mattress
  4. The worst place for your cash, according to just about any economist, is under a mattress. Even if you’re unlikely to get much interest from a typical savings account – what happens to the value of $1 sitting under your bed while the cost of everything goes up and up?

    It’s still ONE DOLLAR. And it buys less and less. Scary, no?

  5. Gold and silver
  6. We talked about buying Gold and Silver on this site before. Here’s a link: It’s a good idea to see what exactly you do have in precious metals and…this next point is key…whether any of that is spendable.

    For instance, if you walk into the local store with a one-ounce gold coin and you’re looking to buy bread with it, you’re not likely to get change back. It’s a really good idea to have silver and gold – both – in as many spendable denominations as you can.

  7. And move beyond your borders – at least with your money
  8. We’re not advocating going offshore with your assets. BUT, if you’re listening to the stuff about gold and silver, make sure you also get coinage in denominations that aren’t your own currency, too.

    The Canadian Mint, for instance, is a good place for Americans to look for currency that’s spendable. And pretty, too. Here’s a link:

  9. Finally, barter can be your friend
  10. We LOVE the concept of the barter economy, and you need to start working with your potential barter network NOW, before the economy goes in the toilet.

    Speaking of toilets – is there a plumber who can do some work for you in exchange for a batch of canned vegetables from your garden? If you’re a writer, can you offer to write web content for someone who can give you some firewood in exchange?

    These types of transactions can be very beneficial – especially in a down economy.

Are we really heading into hyperinflation? Well, who knows…but, if you want to be certain that you’re prepared, take some precautions now and you’ll be prepared later.

What do YOU recommend to prepare for hyperinflation?

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About Frugal Freida

Frugal Freida is the archetypical New Frugality visitor - savvy, smart, social and aiming to help share her tips with the world.

2 comments
Mandy Boyle
Mandy Boyle like.author.displayName 1 Like

Definitely a big supporter of bartering. I'll gladly write or bake cupcakes in exchange for other services. 

davevandewalle
davevandewalle

 @Mandy Boyle I predict more barter networks arriving in the months to come. Right now, they're confined to the larger players...but once there are more buy local movements, that will mean more bartering.