Finances as a prepper

[Hiltonizer]

I know there are at least a few others here who listen to The Survival Podcast.. and I'm pleasantly surprised how often the host goes in to finances. Recently in particular it is covered a lot.

I was the "Justin from Boston" talked about on Monday's show.

As the host of TSP often points out, a personal SHTF is much more likely (Job loss, injury, death of a family member, etc). By moving up the scale preparing for smaller, more local or personal SHTF scenarios, you eventually end up covering most of the bases for larger things. (Disaster Commonality)

My question here is, how many of you have considered your finances as a key part of preparedness? What have you thought of that could help fellow preppers out that perhaps we haven't thought of or heard elsewhere?

I recently posted a synopsis to my approach to food storage while saving money here on this forum for those curious on one of my strategies.

 

[6fthook]

I'm completely new to this stuff. But would your finances be safe if you put some in an off-shore swiss bank account?

 

[Mike-Mike]

I'm completely new to this stuff. But would your finances be safe if you put some in an off-shore swiss bank account?

Safe from a US bank collapse yes. Safe from our government and taxes NO.

 

[P-14]

In the books by Rawles (Patriots and How to Survive the End of the World as We Know It), he makes some recommendations. And, in the Survival Checklist on page 6 there are some recommendations on a real SHTF situation in Argentina: http://northeastshooters.com/vbulletin/showthread.php?t=58896

What preparations have I made?

• If the paper money's still good, I've got some $20s hidden in plain sight and $100 in 20s with each BOB.
• If the paper money's no good, I've got some pre-1965 90% silver US coins - Silver dollars, half-dollars, and dimes.
• If the money's not good, gold and silver jewelry presents to the wifey and daughters that are sterling silver and 14 ct. gold that can be used as in Argentina

I'm open to other thoughts so I can be better prepared.

 

[TonyDedo]

It amazes me how delusional some people can be when it comes to disaster preparation. They'll have 10k rounds of .308 ready to fight off the Russians and enough camping gear to survive in the woods for a year, but they don't have a dime saved and a $10k credit card balance. So the Russians never invade, but they're SOL when they lose their job and can't make their mortgage payment (shame the bank won't barter for .308).

I try to rank my SHTF scenarios in terms of likeliness:

1 - Unemployment, sickness or debilitating injury.

2 - Natural or man made disaster rendering local services temporarily unavailable.

3 - End of the world as we know it.

I'm not worrying about #3 until I'm set on #1 and #2. And #1 and #2 both require cash reserves. I keep 3 months worth of expenses in rotating CDs in the bank (I'd like to keep more, but I'm working at it) and a chunk of cash in small bills ($20s and under) onhand.

If the Russians invade, though, I'm screwed…

 

[P-14]

I keep 3 months worth of expenses in rotating CDs in the bank (I'd like to keep more, but I'm working at it) and a chunk of cash in small bills ($20s and under) onhand.

Just as a follow up to my previous post:

• I never carry a balance on credit cards
• I have 6 months cash reserve in a bank moneymarket account at the credit union

 

[garandman]

//
My question here is, how many of you have considered your finances as a key part of preparedness? What have you thought of that could help fellow preppers out that perhaps we haven't thought of or heard elsewhere?
//

I learned from some Mormon friends to have a bunch of small bills (1,5,10) since ATM's dispense $20's.

I just put $20's in my wallet and pay for everything I buy for a week with a $20, then put all the small bills in an envelope in the safe.

What I didn't learn from Mormons is that if the SHTF, a case of Jack Daniels is going to be better than money!

 

[Kaos116]

I just started listening to 'The Survival Podcast'. He makes alot of sense. The idea I agree with most is becoming debt free. He makes mention of having a mortgage and maybe car payments, but that's it. You would not believe how good it feels getting out from under all that credit card, student loans, and personal loan debt. The benefit is all that extra cash you have every month.

I agree that you should prepare for what is most likely your disaster scenario. Job loss, injury, ice storm all the way to the Russians invading. Start prepping for the most likely and you will notice that it is also prepping for others on the list. Prepping for the Russian invasion will probably only mean picking up some more ammo. Everything else will have been done by prepping for the more likely disasters.

As far as the op topic. IMHO Keeping enough cash on hand is always a good idea. 3 months reserve in the bank is a good start. 6 months to a year is better. Keeping actual cash in the house is good too. A few hundred to a couple grand. I personally like 1's, 5's and 10's. If the electronic banking system goes down and I want a gallon of milk. I don't want to hope that the quickie mart will have change for the 20 or 100.

Gold and silver... I like those too. I like having the actual stuff in my hand. Not some piece of paper saying I have it somewhere else. My ratio is about 90/10. 90% silver to 10% gold onhand. If it comes to a total financial melt down. Silver US coinage will be easiest use. It comes back to being able to 'make change' . A half ounce of gold is worth about $500, making change for that could be difficult. Silver dimes at about $1.25 will be the easiest to use.

 

[Plural of Mongoose]

.

What I didn't learn from Mormons is that if the SHTF, a case of Jack Daniels is going to be better than money!

Yep. Booze and butts will be good trade items.

 

[jkdyoyo]

Yep. Booze and butts will be good trade items.

Yep, that's if you don't smoke'm and drink if you got'em.

 

[Silver74]

It amazes me how delusional some people can be when it comes to disaster preparation. They'll have 10k rounds of .308 ready to fight off the Russians and enough camping gear to survive in the woods for a year, but they don't have a dime saved and a $10k credit card balance. So the Russians never invade, but they're SOL when they lose their job and can't make their mortgage payment (shame the bank won't barter for .308).

I try to rank my SHTF scenarios in terms of likeliness:

1 - Unemployment, sickness or debilitating injury.

2 - Natural or man made disaster rendering local services temporarily unavailable.

3 - End of the world as we know it.

I'm not worrying about #3 until I'm set on #1 and #2. And #1 and #2 both require cash reserves. I keep 3 months worth of expenses in rotating CDs in the bank (I'd like to keep more, but I'm working at it) and a chunk of cash in small bills ($20s and under) onhand.

If the Russians invade, though, I'm screwed…

+1 for you! Every one listens to FerFal, but they don’t realize that half of the stuff he says it only happens in FerFals head. There are a lot of good advise in those pods and in FerFals site but he exaggerates a lot of the things he sais, the problem is people like to hear what he sais and validate something in their mind. Be safe be prepared be smart and don’t believe everything you read on someone’s website.

 

[Hiltonizer]

I think too many people here are missing the point of my post.

If you are properly prepared, having small bills, a pile of cash, and precious metals is the last of your concerns.

I'm referring to being debt free, and making investments in not only being self sufficient if SHTF, but being self sufficient as a lifestyle to be insulated from almost anything. Making your life better now, not just if something happens.

Too many people seem to have the Y2K/2012 mentality in regards to prepping, the same people that would be absolutely F'd if they got laid off and couldn't find real work for a year (happened to how many folks this year? thats a real SHTF). Those are the people selling generators and camping equipment for pennies on CL right now.

If you look at it, our tax code is already SHTF, potential carbon taxes around the corner, money being harder to make etc.

 

[Silver74]

I think too many people here are missing the point of my post.

If you are properly prepared, having small bills, a pile of cash, and precious metals is the last of your concerns.

I'm referring to being debt free, and making investments in not only being self sufficient if SHTF, but being self sufficient as a lifestyle to be insulated from almost anything. Making your life better now, not just if something happens.

Too many people seem to have the Y2K/2012 mentality in regards to prepping, the same people that would be absolutely F'd if they got laid off and couldn't find real work for a year (happened to how many folks this year? thats a real SHTF). Those are the people selling generators and camping equipment for pennies on CL right now.

If you look at it, our tax code is already SHTF, potential carbon taxes around the corner, money being harder to make etc.

Very true!

 

[garandman]

+1 for you! Every one listens to FerFal, but they don’t realize that half of the stuff he says it only happens in FerFals head. There are a lot of good advise in those pods and in FerFals site but he exaggerates a lot of the things he says, the problem is people like to hear what he says and validate something in their mind. Be safe be prepared be smart and don’t believe everything you read on someone’s website.

Is that the guy who is bugging out to Arkansas?

I like how he suggests buying a grain mill - an expensive one. If something goes wrong in Boston, a grain mill is not going to do me much good. A big bag or two of something I can buy at Costco, and a bunch of cash is going to be a lot more useful: "It always fits, and it's always the right color."

My wife thinks I'm insane because we have five gallon water jugs in the basement and I ask her to fill up her gas tank when it goes below 1/2.

 

[glostamon]

I think too many people here are missing the point of my post.

If you are properly prepared, having small bills, a pile of cash, and precious metals is the last of your concerns.

I'm referring to being debt free, and making investments in not only being self sufficient if SHTF, but being self sufficient as a lifestyle to be insulated from almost anything. Making your life better now, not just if something happens.

Too many people seem to have the Y2K/2012 mentality in regards to prepping, the same people that would be absolutely F'd if they got laid off and couldn't find real work for a year (happened to how many folks this year? thats a real SHTF). Those are the people selling generators and camping equipment for pennies on CL right now.

If you look at it, our tax code is already SHTF, potential carbon taxes around the corner, money being harder to make etc.

Sound advice.
Clear up credit card balances avoid contracts/mortgages,have a physical savings plan..
I see a major SHTF possibility similar to the "Great Depression" stock market collapse.
However personal financial SHTF (bankruptcy,divorce,debt,unemployment) is more likely at first,when it happens to the majority theres our next "Great Depression".

 

[matt]

I think too many people here are missing the point of my post.

If you are properly prepared, having small bills, a pile of cash, and precious metals is the last of your concerns.

I'm referring to being debt free, and making investments in not only being self sufficient if SHTF, but being self sufficient as a lifestyle to be insulated from almost anything. Making your life better now, not just if something happens.

Too many people seem to have the Y2K/2012 mentality in regards to prepping, the same people that would be absolutely F'd if they got laid off and couldn't find real work for a year (happened to how many folks this year? thats a real SHTF). Those are the people selling generators and camping equipment for pennies on CL right now.

If you look at it, our tax code is already SHTF, potential carbon taxes around the corner, money being harder to make etc.

I can only add to this, don't forget about the most likely SHTF scenario. It will come to all of us sooner or later: Retirement. Yes, the market sucks now, and there are risks, but saving for retirement is a requirement - or should be.

 

[Silver74]

Is that the guy who is bugging out to Arkansas?

I like how he suggests buying a grain mill - an expensive one. If something goes wrong in Boston, a grain mill is not going to do me much good. A big bag or two of something I can buy at Costco, and a bunch of cash is going to be a lot more useful: "It always fits, and it's always the right color."

My wife thinks I'm insane because we have five gallon water jugs in the basement and I ask her to fill up her gas tank when it goes below 1/2.

I'm not sure if it is the same guy but if it isn’t it sounds like they belong to the same club.

 

[TheRoland]

I consider myself unprepared if I can't survive, paying all my mandatory bills and discretionary hobbies, for 6 months without going to credit. This hedges against job loss, which is far, far more likely than collapse of the entire banking system. I'm usually at or around this standard, depending on the current definition of "hobbies". With the rate at which I'm buying guns, it's likely pretty close to not being met at the moment.

 

[ShadeWPI]

Some suggestions from friends of mine who have gone through personal SHTF regarding finance:

1) Maintain 2-3 weeks worth of cash "on-hand" that is, not in the bank, but in physical currency at your house. It may become very hard to access your bank funds, keep enough on-hand to allow any issues with access to blow over.

2) Maintain 3 months cash in immediately available cash/cash equivelents (Checking Account, Savings Account, Money Market Account) Money you can withdraw from a bank at your discression without penalty.

3) Maintain 9 months cash in 3 seperate 12month CDs. This allows them to earn better interest than available with the prior 3 months, but will still be available when you need it. Should something happen (injury, illness, lay-off, etc) 3 months of expenses will become available every 3 months. If it doesn't, at least you're earning more than it would in a savings acount.

In the current job market, 8-12 months out of work is not uncommon. I was reviewing some resumes for a highly technical openning at my work and several applicants have been out of work since March/April time frame. While most employers are expecting improvement next year, it's expected to be quite slow and there are A LOT of people still looking for work.

 

[dreamer]

3) Maintain 9 months cash in 3 seperate 12month CDs. This allows them to earn better interest than available with the prior 3 months, but will still be available when you need it. Should something happen (injury, illness, lay-off, etc) 3 months of expenses will become available every 3 months. If it doesn't, at least you're earning more than it would in a savings acount.

I'd go for three three-monthers in 9 month CD's or get 4 three-monthers in 12 month CDs. It would suck to lose your job the day after your election on the 3rd CD expires and you have to wait 6 months for the next. (Mar, Jun, Sep cycles and lose your job Oct 1st) With this modification, a great idea!

 

[Hiltonizer]

I'd go for three three-monthers in 9 month CD's or get 4 three-monthers in 12 month CDs. It would suck to lose your job the day after your election on the 3rd CD expires and you have to wait 6 months for the next. (Mar, Jun, Sep cycles and lose your job Oct 1st) With this modification, a great idea!

Step 2 in his post addresses this. Still a great idea no matter how it's diced, provided all your consumer debt is gone.

+2 to both of you.

 

[MasterShinken]

I am considering keeping a stock of fat, stupid people in close proximity, not caged up or anything, more of a free range thing. I figure when the zombie SHTF happenes, the new currency will be brains. If I keep a fresh, easy to access 'bank' so to speak, near by, I can corner the market on a local level.

 

[Ziptar]

I'm referring to being debt free, and making investments in not only being self sufficient if SHTF, but being self sufficient as a lifestyle to be insulated from almost anything. Making your life better now, not just if something happens.

Since you put it that way.....

I always feel like I am going to get allot of guff when I mention this in this forum. Yes, it leans more towrds women, more precisley Moms but, us He-Man types can gleen quite a bit from it too.

You might want to give Depletion and Abundance: Life on the New Home Front by Sharon Astyk a read.

Your post would fit into what she calls "The Theory of Anyway." in other words, if you are convinced your life style could, should, or needs to change based on what a future may hold, than shouldn't you begin to live that way anyway?

Part 2 is all about money. She covers debt, making ends meet, and "The Real Economy". Table of contents

Yeah it's a bit feminine (feelings and emotions ) in parts and she sits more in the "Climate Change" camp than I persoanlly do, then there are those that say it lacks lots of specific details. Those types of folks just that want simple step by step exact executive summary instructions for everything. This book is more about getting your head around what may lie ahead, which is more important that having someone just giving out the answers.

The author set out 4 years ago to structure her life much as you describe above, She was not only worried about what the future held but also wanted to create a better quality of life in the present. She's done it and continues to, that carries weight. It is worth the checkout from your library or the $15 cover price even, I bought a copy after I read the libraries copy for my wife to read. She'll never have to have a BOB because she's already there, everyday.

She runs a blog too, she just got picked up as a professional blogger here http://scienceblogs.com/casaubonsbook/ her old blog is here http://sharonastyk.com/

 

[dreamer]

Step 2 in his post addresses this. Still a great idea no matter how it's diced, provided all your consumer debt is gone.

+2 to both of you.

Imagine having 3 CD's expiring March 31, June 30 and September 30.

Money crunch hits October 1
3 weeks house money gets you to October 21
3 months bank money gets you to January 21st
Needing the cash in your one 6 month lull would hit you, but since you would likely just forfeit the interest earned on the CD that is the newest in its cycle you can overcome the bad timing.

Still, this is far far better than nearly everyone is set up right now. I'm just pointing out this scenario because when it rains it pours, and it would really stink if someone hit the 2 months of suboptimal timing in this plan. (October and November incident timing)