Financial Prepping

[Gazrok]

It's odd, but this category never seems to come up (nor is it listed on this forum).

But, it's likely one of the most important categories to consider....after all, it ALLOWS for the other types of preps to take place!

I've recently begun to focus more seriously on this, because a) I'm tired of living paycheck to paycheck...b) having multiple income streams is a great way to weather temporary financial setbacks....c) I never learned it when younger, so now see the importance of it.

Not just for SHTF, even for minor setbacks, etc. For me, prepping isn't just for a SHTF event, it's for ANY event than can disrupt our lives and survival. And this includes financial events. When I was out of work for a while, this was a tough, tough lesson. Especially when the unemployment checks ran out. (And I was no slouch, pounded that pavement for 8 hrs a day).

So, while I've dipped a couple toes into cryptocurrency, that's really a high risk, speculative thing. Instead, I've been trying to educate myself on stocks, how they work, how to make money at them, etc. A friend of mine, he's doing well at it, so having him help me along too.

The reason for this thread....DON'T LEAVE THIS TYPE OF PREP OUT! That's all, I mean, it's probably the most important one you can do for you and your family. This includes things like life insurance, etc. When I go, I don't want my kids to have to do a damn thing. We plan to have everything planned and paid for (even the service details etc.). (probably couldn't trust 'em with it anyhow...lol)

I'm not talking about hoarding gold and silver, etc., but real time wealth you can use before any kind of event. (and I have serious doubts about the value of precious metals in a post shtf environment)....

 

[TexasFreedom]

Here's a great place to learn more: daveramsey.com . He's a radio guy, with Christian-based financial advise. Don't worry, he won't beat you over the head with the Bible. But he offers great common sense guidance on how to get out of debt, how to live within a budget, and how to make your money work for you. It is not 'prepping', but it's just as good if not better.

BTW, if you think silver/gold aren't valuable post SHTF, do you really think cryptocurrency will be worth a lick? Precious metals are good as some of your last prepping items, but 95% of preppers are not to that point.

 

[drt4lfe]

It is a good subject, If a collapse happens ? How would you know money will be any good ? I would think Gold and Silver will be, but Stocks and paper money may be worth nothing and crazy inflation could also make it useless....Food, Weapons, ammo, tools, camping gear and such have always been a Prepper's money in the bank. Building income is never bad, we will probably all be dead before a collapse that would ruin money happens, so if it never happens you will have more to spend on having fun.

 

[Brent S]

Here's a great place to learn more: daveramsey.com . He's a radio guy, with Christian-based financial advise. Don't worry, he won't beat you over the head with the Bible. But he offers great common sense guidance on how to get out of debt, how to live within a budget, and how to make your money work for you. It is not 'prepping', but it's just as good if not better.

BTW, if you think silver/gold aren't valuable post SHTF, do you really think cryptocurrency will be worth a lick? Precious metals are good as some of your last prepping items, but 95% of preppers are not to that point.

Dave Ramsey is really good straight forward advice. Like you said, he is a strong Christian, but doesn’t ‘sell’ that like some. Most of Dave’s advice revolves around getting out of debt, which to me should be in the top of anyone’s prepping list. And for the parents out there, teaching your kind to not go into debt in the first place is one of the best things you can teach a child.
As far as precious metals being worth anything post shtf, look back at history. People still wanted it through tough times. Even stocks would be worthless during really bad times, but a pocket full of gold will always be good for trade. I think investing should be just like everything else in prepping, diversify. Don’t ever put all your eggs in one basket.

 

[Squirtgunsquirter]

My friends dad, back in the 70's, would stop on the way back from work and buy a silver bar every once in a while. He also took guns and ammo on trade for working on cars. After he passed, we went through the secret room and took an inventory.

A roll of gold coins, a lockbox of silver bars (98, we feel like that number should be 100, why stop at that number??) and about 30 guns, all with at least a few boxes of ammo, and sometimes a lot of ammo. Gunsmithing tools, cash, just a ton of valuables, and all physical and all mobile.

You want to talk about prepping security. If the Nuke Plant blew up, the farm would be worthless, but all that stuff could go in a truck and go with. It's a high density valuable, you get a lot of value for that weight.

I honestly don't know how the guy did it, it seemed like he drank and tinkered on cars more than he worked, but he sure did it right. I commend you for wanting to take care of your kids future, Gazrok. I personally wont be able to do that, at least it doesn't look that way now. But I'm thinking about the future, for sure.

I have stocks, in the form of my Pension Portfolio, and I will be ok, but not twice a year vacation in the Bahama's ok.

I have a bit of debt, it creeps back up on me. So I need to get a couple grand paid off, and I will be doing a bit better.

As far as bitcoin, I was thinking about picking up a few hundred worth of litecoin, but then the crypto market tanked, and I held off.

I definitely suffer from an old fashioned way of looking at things, and if I can't put something in the car, or a bag, it doesn't seem real to me. Even my pension seems far away, and unreal. I don't know how to change that, or honestly if I even want to.

But a great topic for discussion, financial prepping is the hardest prep, suffer now for future rewards.

 

[Gazrok]

BTW, if you think silver/gold aren't valuable post SHTF, do you really think cryptocurrency will be worth a lick? Precious metals are good as some of your last prepping items, but 95% of preppers are not to that point.

To be clear, for me, financial prepping is all for BEFORE the SHTF. After it, there won't BE an economy, for a while. So crypto, stocks, etc. is all to position yourself BEFORE the mess (and consistently convert it to currency you can use to buy preps, etc.). I get why silver and gold is attractive, but I just can't see where the purchase power will INCREASE (only decrease) post SHTF. In other words, $100 of gold today, may buy a few boxes of ammo. Post SHTF, that same (formerly $100 worth) gold may buy a few bullets, or maybe even one box of ammo.

Good point though, on getting out of debt being a good prep. We basically have a mortgage, and our student loans as our only debt. We have a few credit cards, but we pay these off by the end of the month (or two months, as if you pay off TOO much, it doesn't help your credit rating, oddly enough). We are in the process of repairing our credit due to a) not really caring much about it before, because we paid cash for things, and b) mess ups when we were much, much younger.

Folks think these things just "fall" off, but old stuff, you actually have to work at getting to go away. I've raised my score about 80 points in the past 6 months, so must be working, lol. Basically, I realize these days, how important this is. I've tried to teach that to my kids, but even with the benefit of our counsel on it, they are still making the mistakes we made when younger (and didn't have such advice).

 

[Gazrok]

Brings up another though. Another aspect of financial prep. What to do AFTER the SHTF. For us, we'll likely be looking to trade quite a few goods and services for things we can't make or grow ourselves. (that are likely scavenged).

Excess food and water, mechanical repair services, leatherworking services, sewing, woodworking, some minor metalsmithing, etc. Things like that. Pretty sure we'd also be growing some tobacco (both normal and wacky). (and maybe even some communications, like HAM, etc.)

Good thing is that it's hard to raid for ongoing services, so we'd be more likely to deal with a band of marauders, than be raided by them. Lets face it, that is going to be a factor in pretty much any scenario. Hopefully, we'll go a while before we get to that point though.

 

[TexasFreedom]

Let me define a post-SHTF 'economy'. Guy #1 lives by stealing from Guy #2, if #2 doesn't kill him in the act. I trade a couple of chickens to a dentist to pull a bad tooth. Guy #2 (a buddy) gives me a bushel of tomatoes for helping him kill Guy#1 above.

Basically take your "The Walking Dead" TV show, delete zombies, tone it down a fair bit deleting the Hollywood stuff, and you have it. Survive or die, offer 'value' or get nothing. Or, look at Venezuela right now, it's no different. Gangs, murders, mass exodus, starvation, professionals working as prostitutes to eat, what a disaster.

 

[Squirtgunsquirter]

I agree that many things will be worth less post SHTF. I suppose it depends on if it is temporary, or it looks like things will be permanently different.

Would I accept silver as payment, in return for food? If I thought that there would never be a national or global economy again in my lifetime, I don't see why I would, unless I am in the business of making something that requires silver.

 

[DrHenley]

Hypothesize all you want about the future, but the past says that gold and silver are the mediums of exchange people trust when recovering from economic chaos.

Quavo - "History repeats itself. So you might wanna pay attention. "
Harry S Truman - "There is nothing new in the world except the history you do not know."
J M Barrie - "Forget not your past, for in the future it may help you grow."
George Santayana — 'To know your future you must know your past"
Carl Sagan — "You have to know the past to understand the present."
Confucius - "Study the past if you would define the future"
Tim Kastelle - "To create the future we must understand the past."
Robert Kiyosaki - "The best way to predict the future is to study the past. "
Ibn Khaldun - "The past resembles the future more than one drop of water resembles another."
Jo Coudert - "In order to plan your future wisely, it is necessary that you understand and appreciate your past. "
Eduardo Galeano - "History never really says goodbye. History says, 'See you later.'"

 

[Gazrok]

Except that this kind of fundamental societal change, from a just in time supply economy is unprecedented in history, so looking to history for answers here, is ultimately only slightly helpful.

Again though, the problem with metals is that it will cost MORE to obtain them, than they can then BUY later...so it's not an investment, it's a divestment of wealth.

TF's illustration is a good one of a post SHTF economy, but even that is only AFTER a period of nearly utter chaos.

I look at it as eventually, we'll encounter a gang that is too well armed to resist with force. Hopefully, their leader will have an ounce of intellect. If not, we have plans B, C, etc. (most of which deal with escape, killing off the gang, and then returning later assuming they don't torch the place as they die, but that's fun for other threads).

If they look to deal, I'm sure we'd be looking at a situation where we supply them with food, water, and services, in exchange for their "protection" and dealing in items they loot from others. Not the most moral thing, but there's survival at play here too.

 

[brandx]

Financial planning. Well we've been flush and we've also been broke. I think the wise thing to do is live as frugally as possible without feeling deprived. I have never regretted being frugal but I certainly have regretted over spending. We have so much that we don't need, that is why there are certain items around here that are getting thinned out. I'd rather have 3 spades than 3 artificial Christmas trees. I find it a challenge to see how little I can get by on. Luckily I have had two generations of great people to learn from. Buy what will last I say. Dad still buys tools from flea markets and farm sales because he says the old tools are so much better then the new ones made of plastic. I recommend getting Tightwad Gazettes if you don't have any. A fantastic resource for reducing spending that is available in book form. I find that a used book reads just as well as a new one. Never buy new if you an help it.
As far as hands on cash, we have some paper but most of the valuables are in trade goods. We feel comfortable with that. My grandmother said during the depression they didn't feel deprived because no one else had anything either. It will be much more easy to survive in the country than in urban areas. I spent one winter in Florida working and felt uneasy. There is no back up plan if something were to turn bad. Those people do not stand a chance if food is not trucked in on a daily basis and that is just the beginning. I would say the best bet is to grab a boat and go up the coast to a rural location if possible. I hate to even think about how those folks would survive in coastal towns, especially in low lying areas around Florida where there is more water than roads. You do not want to be in certain areas when things turn sour. You will have a difficult time getting out, it is better to live in your "bug out" location. This also cuts expenses so you can fortify. You can have lots of gold but that doesn't mean you will be able to buy anything. Have a little bit of everything, but mostly have what you need to live.

 

[DrHenley]

Except that this kind of fundamental societal change, from a just in time supply economy is unprecedented in history, so looking to history for answers here, is ultimately only slightly helpful.

Gaz, maybe you didn't read what I said? You are talking about the transition to chaos, and yes that will be unprecedented. Then comes Chaos. I doubt that will be fundamentally different than any other period of chaos...except maybe the ability to kill people faster. (I just got through watching Black Sails about the Pirate Republic of Nassau, LOL Talk about Chaos!)

Then comes the period I alluded to.

 

[Brent S]

Hypothesize all you want about the future, but the past says that gold and silver are the mediums of exchange people trust when recovering from economic chaos.

Quavo - "History repeats itself. So you might wanna pay attention. "
Harry S Truman - "There is nothing new in the world except the history you do not know."
J M Barrie - "Forget not your past, for in the future it may help you grow."
George Santayana — 'To know your future you must know your past"
Carl Sagan — "You have to know the past to understand the present."
Confucius - "Study the past if you would define the future"
Tim Kastelle - "To create the future we must understand the past."
Robert Kiyosaki - "The best way to predict the future is to study the past. "
Ibn Khaldun - "The past resembles the future more than one drop of water resembles another."
Jo Coudert - "In order to plan your future wisely, it is necessary that you understand and appreciate your past. "
Eduardo Galeano - "History never really says goodbye. History says, 'See you later.'"

Wow Doc! You got that covered amazingly well. I don’t even know who half of them were, but all gave good advice.

 

[Brent S]

I guess the moral of this discussion is none of us have a crystal ball to tell exactly what the future will bring. That just makes me feel that having a good diversified ‘portfolio’ is smart. By portfolio I mean not just a 401k in mutual funds, but some cash, some precious metals, some physical assets like tools and implements, etc. By having multiple assets you just increase your odds that something will be of value or use to you down the road. I do think one thing is important to remember too. DONT forget to live and enjoy some every day. Life is short and if you only save for the future you’re going to miss out on a lot today. Everything in moderation.

 

[Gazrok]

All for living frugal, but I like to experience life too. We have our vacations for that outlet, which are mostly mini vacations (like 3 days). We're also still big kids at heart, so some of those hobbies can cost. Still though, that's why we always strive to have multiple income streams....especially since we've been laid off at times, and those times SUCKED so bad.

At least, we have the income from horse boarding, and from selling off the merch from the shop, in addition to paychecks. Soon, we'll be adding income from the scrapbooking/painting studio. (and hopefully, a little from crypto and stock investing too).

Occasionally, we even get some off and on cake or mural jobs, that add to the pot a little.

 

[bigpaul]

I agree that many things will be worth less post SHTF. I suppose it depends on if it is temporary, or it looks like things will be permanently different.

Would I accept silver as payment, in return for food? If I thought that there would never be a national or global economy again in my lifetime, I don't see why I would, unless I am in the business of making something that requires silver.

Temporary? Permanent? depends on your definition I suppose, the UK government classifies anything permanent as something that lasts longer than 30 days, me I reckon it'll last a helleva lot longer than that, years/ decades not days.
as for gold and silver, I shan't bother, if I cant eat it, drink it or wear it I don't want it.

 

[Arcticdude]

In my opinion financial prepping is probably the single most important prep that a person can make. Get out of debt as soon as possible, stay out of debt. Even if it means putting off some things that you'd like to have. Most of my life I bought used cars and equipment. Now I buy everything new.
Start investing early and always look for oppertunities. Just remember; oppertunities don't always come along when it's convenient for you, but you should be ready to jump on them when they do come up.
I started investing before I was 16, bought my first house at 19. Back then my goal was to "trade up" every 5 years by doubling the size and cost of the home. Generally you make the most profit on a new house in the first 5 years. Early on I invested in as much gold and silver as I could afford, even bought a profitable placer gold mine back in the early 80's. I bought a large tract of timber in the 90's from a Florida guy who didn't know the value of timber. Made a killing when I logged it.
Learn the stock market. It's done very good for me. Stocks always fluctuate up and down. Simple rule of thumb; buy low and sell high. However, there are many "forever" stocks that one should hold for a long time.
Over the years I've taken many high risks by leveraging debt to my advantage. Even though these risks have paid off very well for me, I wouldn't recommend anyone taking that much risk or debt.
Along with investing in paper products, such as stocks and bonds, I think it's wise to invest in tangibles too; real estate, precious metals, tools and equipment. But probably the most important investment a person can make is in themselves. Learn a marketable skill or trade that is actually in demand and pays well. IMO a college degree is waste of time and money for most people. For me I learned welding, mechanics and foresty. Welding, for example, is always in high demand and pays very well. It also took me to my first overseas job. Most of my overseas jobs came with 3-6 months vacation each year, enabling me to focus on other things. From there I went in to management and up the corporate ladder.
I "retired" early and can now live the life that I've worked for, and completely debt free.

 

[Brent S]

I agree, ‘investing in yourself’ makes sense. If you don’t have a decent job it’s really hard to save enough to ever get ahead. Basically, if you don’t start making efforts to improve your situation, nothing will ever change. Start with loosing expensive bad habits, like smoking or going to bars. Consider what you like naturally and try to find something in that field of work. Usually when your really interested in something you do well in it and move up. Even if it takes five years to make a change for the better, if you don’t start now in five years you will still be in the same situation.

 

[Gazrok]

IMO a college degree is waste of time and money for most people.

Yeah, wish I had learned that one earlier.