The realistic picture
In Argentina, the 2001 "corralito" limited cash withdrawals from banks. In Greece in 2015, ATMs paid out only 60 euros a day for weeks. And in 2022, inflation sent food and energy prices soaring across Europe. Fernando Aguirre, who lived through the Argentine crisis, writes in his book about it that what helped people most wasn't gear, but savings, skills and their network of contacts.
This isn't financial or investment advice. For decisions about your money, talk to an independent professional.
Before
- Emergency fund: the usual guideline is three to six months of basic expenses, in a separate account you can reach quickly.
- Cash at home for two weeks, in small bills.
- Pay down expensive debt, especially credit cards.
- Know your deposit insurance: in the US the FDIC covers up to $250,000 per depositor per bank; in the European Union, up to €100,000.
- A rotating pantry: buying staples ahead also protects you from price rises.
- Skills: cooking from scratch, repairs, growing something or a second trade give you income and savings.
During
- Cut spending early, before you have to.
- Don't make big financial decisions in a panic, and distrust anyone offering quick fixes: scams thrive in crises.
- Lean on your community: swapping, shared shopping and neighbors helping each other.
- Look after your health: getting sick with no income is what makes a crisis hardest.
More in the long-term preparedness guide.