Cash Reserves – question
Chris and others have advocated to have several months of cash reserves available and outside the banking system. I would like to know what these reserves would account for. I understand things like food and consumables should be included here, but what about things like mortgage payments, property taxes, insurance premiums, etc. I would be curious to find out how others prioritize things with cash.
Not an economist here but do follow certain blogs (including PP obviously). I would guess cash covering expected expenses in the home primarily w/b the focus of cash. What I personally think about an extreme event that shuts down the banks, stores,etc is the inability to access goods regardless of the amount of cash you may have on hand. Certainly food, gas and any things we need to survive would be on short supply (remember the current food supply avaialble for in store purchases is about 2 to 3 days. I think having food, toilet paper, heat for your domicle (wood, propane, etc) and enough food to sustain you and any family for a month is not unreasonable. I have two berkey water systems in case of calamity as water is certainly more important than food in the short term and months of dried food as well as a wood stove. The cash w/b great if the gas stations remained open and the food stores kept receiving goods as well as and plan for both senarios is my motto. Oh, and several thousand rounds of various caliber of rounds and the means to deliver them. I beleive that if looting did start they would come by the pack not onsies or twosies so it may not matter but I’ll be able to resist to some degree. I’m sure these types would rather attack an unarmed house than an armed one. Even having cigaretts or booze is a good idea for barter if it comes to that.
Hope this gives food for thought, the cash is a great idea but I think it prudent to have cash for at least several months AND provisions in the even the cash is worthless.
I think the idea of holding cash is about quick purchases of food and basic essentials when/if the banks freeze activity. We saw this happen in Greece. As far as property taxes and mortgages go….write ’em a check. My opinion is, let the banks and governments deal with the mess of paper they created.