As the economy continues to worsen, people everywhere are trying to do all they can to survive the economic crunch and hold onto what they have, including their jobs.
However, there are people who months ago started moving out of the cities, stripped themselves of all excess items, and headed for small towns where they can change their lifestyle completely. By doing this, they have cut their cost of living to a fraction of what it was before.
One such "doomer," as such types are becoming known, is Dmitry Orlov, a former Soviet software engineer and writer of the 2008 book, "Reinventing Collapse: The Soviet Example and American Prospects." In the book, Orlov gives what he says is the recipe for "superpower collapse soup." The ingredients are "a severe shortfall in the production of crude oil; a worsening foreign-trade deficit, an oversized military budget, and massive foreign debt."
In speaking with a lot of financial professionals in recent months, he says that they are reinforcing his belief that the United States is bankrupt. He further states that we're not just vulnerable, that things will probably get much worse.
So what if we aren't in a position to head for the hills as Orlov and other doomers are doing? What can we do to help ourselves through the rough seas ahead?
The first thing we can do is get back to basics. There is no question that we are a spoiled rotten country. Just look at the resources we use each day.
For example, we use almost 17 million barrels of oil, two-thirds of which is for transportation alone. You may not be in a position yet to get rid of your SUV, but start planning for a more fuel-efficient vehicle now. The day of the gas guzzler is over. Perhaps a hybrid or electric car is in your future.
In addition, according to Solar Energy International, although Americans comprise only 5% of the world's population, we use 26% of the world's energy; by 2015 that will have increased by 17%!
On a personal level, we all can cut down on our use of energy. If you don't know how to do this, get on the Internet and do some research. Look up things like solar power, Energy Star products, insulation, and things like that. One topic will lead you to another, and you will learn what will be the most effective methods you can use for saving energy. And you will be saving on your costs, as well.
James Howard Kunstler, another "doomer" and author of "World Made By Hand,"a novel set in the "post-collapse future," believes our obscene conspicuous consumption amounts to "the greatest misallocation of resources in the history of the world." That is not only frightening but embarrassing, too.
Getting back to the other items in Orlov's "soup," there may not be anything we can do individually about the worsening foreign-trade deficit, runaway military spending, or massive foreign debt, except write to our leaders; but there are some things we can do to keep ourselves afloat through the tough times ahead.
These are the basics, which we all should have been doing all along but weren't:
Reduce your food costs by shopping wisely.
You may not be cut out to be a locavore, but you can certainly eat cheaper by sticking to a list when you shop at the store, avoiding meals out, packing lunches for everyone in the family, and foregoing expensive coffee drinks in the morning.
Start a garden.
This is an excellent way to get a year-round supply of many fresh fruits and vegetables. With a bumper crop, you'll have enough for the winter months. Better yet, trade extras with other home growers to get what you don't have.
Cut back on clothing costs.
Of course, children will continue to grow, and there's not much to be done about that. However, if you have family or friends with kids around the same age, you can do a clothing exchange. And for special occasions, see if you can borrow a dress or suit, rather than make an expensive purchase for something you will wear only once or twice.
Get in better financial shape.
Reduce all debt, particularly credit card debt. If possible, make more than minimum payments and try to get everything paid off as quickly as possible.
Work with your lender to see what you can do to reduce your mortgage.
If you rent, speak to your landlord. You may be able to get a reduction because of your good record of paying on time.
Hang onto your job as this is no time to be unemployed.
By starting to think now about every penny spent, you will be in a much better position if and when it starts to hit the fan.
Sources:
Ben McGrath, American Chronicles, "The Dystopians." The New Yorker, January 26, 2009. p. 41.
Solar Energy International (solar energy.org/resources/energy facts.html)
U.S. Department of Energy (www.energy.gov/4242.htm)