How to financially prepare for climate change

Last Updated on August 30, 2026 at 10:15 am

You probably feel grim and despondent if you have tracked factual climate change articles over the past few years. What was earlier academic debate now seems like a matter of time. Can we financially prepare for this? How?

Here are a few articles that remind us of the kind of mess we are in now.

• What is climate change? A really simple guide
• Climate records tumble, leaving Earth in uncharted territory – scientists
• Ocean heat record broken, with grim implications for the planet
• India: Climate Change Impacts
• Switzerland’s vanishing glaciers threaten Europe’s water supply.
• Will the Gulf Stream really collapse by 2025?
• Antarctic sea-ice at ‘mind-blowing’ low alarms experts

Naturally, there is still a lot of uncertainty and debate about when (perhaps, no longer “if”) climate change will visibly make life uncomfortable continuously. Maybe we have five years to prepare, maybe ten or longer. Nothing is clear now other than that the alarm bells are ringing. So we need to start thinking about this.

Will nature “somehow” adapt and forgive the most dangerous species to inhabit the planet? Will our efforts to reverse climate change help, or will it be a case of too little, too late? Is there something we can do to protect at least our family when disaster strikes?

I appreciate that not everyone would feel strongly about this; perhaps some might even be dismissive with a “life will find a way” approach. While I would be delighted if life finds a way, I feel better if I am mentally prepared for the future (assuming there is one). If you disagree, I respect it.

Regular readers may recall that we once discussed one solar storm away from disaster –Forget market crashes; we will lose everything if this happens! While that has little to do with the mess man makes on Earth daily chasing after money, we are solely to blame for climate change.

We still do not know how the impending devastation of climate change (assuming the worst) will pan out. Will it be global or specific to some continents? If it does come to pass, it could quickly snowball and spread to every place on Earth, affecting all of us at more or less than the same time.

At such a time, our priorities would significantly change. Long term goals, stock market return etc., will not matter. There would be no future to build wealth for. Is there something we can do to financially prepare for what seems like an eventuality?

Disclaimer: These are merely personal considerations and not recommendations to act immediately. Climate change is complex, and scientists rarely agree in unison on any topic!

• Cash will be king to a reasonable extent, and for whatever little time, it is worth something. Cash includes money market instruments like liquid funds, money market funds etc.
• Real estate was never a good investment; now, it seems less so. Those with such illiquid assets could have trouble selling or getting an income.
• Even buying property for consumption (residence) does not seem as bright as before. A reader recently said a nomadic lifestyle may be necessary to fight the local effects of climate change. To some extent, I agree. Which is why I belive cash is king.
• The stock market will probably crash and not rise again rapidly as it thrives on hope.
• Gold prices may increase. Increasing gold allocation or holding more physical and tradeable gold may be a way to go, but it does not personally appeal to me. At least not yet! With so much uncertainty, who’s to say this is right and that is wrong?!

If things get any worse (they may or may not), then increasing cash allocation and avoiding real estate purchases, at least for investment, are two things that make sense to me for the time being. When facts change, so will our opinions.