What are you doing with your Money?
We have a substantial amount of money in an emergency account (enough for three months expenses). It’s all in low interest mutual funds, but easy to pull out. Then, of course, our regular savings and checking. Are y’all just keeping your money in banks? Are you pulling cash? Buying precious metals? I have no idea what to do with money in an emergency/crash situation. Any advice and personal stories welcome! Please!!
We liquidated in Feb 2020 when shit started to hit fan. We don’t hold retirement accounts or any accounts for that matter. We took everything out of our banks. We have 10% in crypto, another 10% in gold, silver and then 1 business where we have stocked up inventory as much as possible to avoid inflation. We also bought multiple gardens (homesteads) in international countries (in case food runs out or the US absolutely crossed the line at which we are almost at) and then finally, bought tools, generators, equipment, deep pantry, extra electrical bikes, lots of medical supplies and things that we would need to live off grid in the US until we are absolutely sick of it here. I think we’re close. Of course we have our house in the US as well. Honestly, I have no faith that our dollar will be worth anything in a few months so we are dumping US cash as much as possible.
Converting it to stuff.
I was never the type to buy extras. If I had a set of bed sheets, I figured I was good. I would make them last and when they wore out I would get new ones. I now have at least two extra sets of sheets (mint in the box) for each of the beds in the house.
Kathy, I am doing the exact same thing. I am replacing anything that even looks old. I just replaced my roof (it needed it), my driveway (it also needed it) , a lot of outlets in my house (did it myself), repainted and fixed up the den, kitchen and two bathrooms, replaced most of my clothing, bedding, towels, etc. I replaced locks. I am buying any tool that I might conceivably need. I am also giving money to relatives who need it for current needs.
I would do more but I don’t know what else I can do.
My furnace, AC is relatively new. I insulated the house as best as I could. I don’t know what else to do.
Some PMs, some bonds that are still paying over 4%, rural real estate, cash, farm equipment. No stocks whatsoever anymore.
Not sure what else I can do. Some money is going into things to make us more self reliant…just ordered a home generator system with 250 gallon propane tank ($$$). Could use a diesel fuel storage tank to keep the tractor running.
I like to think worse case scenario; I have no fuel, no power, no food. What would I need to go “Amish”? To that end I have alot of manual gardening tools, hand saws, axes, etc..
I am worried about my rainy day fund too – enough to carry me for 18 mos or so maybe more if stretched. But worried it needs to be something more tangible , property, gold etc. But how to get it out , if you need it. of course to leave it as liquid assets doesn’t mean much – as if there is significant inflation , and there will be – it will essentially evaporate. But , you still need to carry the bills. thinking about paying off the mortgage. not sure. but that doesnt do anything if there is inflation , the house will go up whether paying the mortgage off or not. What is the likely hood of having mortgage loans recalled if all goes to hell ( which i am expecting ) It might be another way to rob our property from us.
We are completely debt free – house and all so we have a very low overhead.(that’d be one of my suggestion is to rid your self of liability. Is your job secure? who’s is anymore) We do try to make ourselves as poor as possible on paper. I keep very little money in the bank < 15K – total. We have money in some individual stocks in non-retirement that we can easily liquidate if need be.
I’ve spent an unusual amount of money on stocking up our pantry, vitamins, medications. I just bought a 3rd chest freezer – just to have. I’m a hunter and process all my own meat but if one of our freezers fails we’d lose about half our meat and our greens from the garden- this extra freezer would be shared with my parents just in case. I don’t know if we will ever use it but I can’t bank on repair parts and availability when I really need it. We also bought as much canning supplies and meat processing supplies for 2-3 years.
Extra HVAC filters and whole home humidification system filters.
Insulate house as much as possible. We replaced all windows a couple years ago. Switch old electric water heater to on demand gas water heater
Rain water collection system for our garden
I just bought more PM when silver took a ~5% dump last week.
We already have farmland. Have cash set aside for dry powder. Will really only by PM’s at this point until stocks (if ever) have better valuation
Oh ya – some extra wine bourbon
As Chris says – look at Maslow’s Hierarchy of needs and think of each point separately. Really think. Walk through your house. What do you use daily? weekly? monthly? yearly?
Boy, I’ve given that a lot of thought and practice over the last decade.
First, in my book, is: Pay off all debts, including mortgage. I think the Blackrocks and Gates’ of the world will happily take your home for overdue mortgage payments and kick you out of it if you don’t pay their elevated rent. If you owe anyone, they have leverage over your life, especially in hard times. The great reset for the next cycle involves owning the assets – that’s where a lot of the fabricated money for the cantillionaires is going. Think neo-feudalism.
Expect stocks to crash and cash to be outlawed. Hey, either might not happen, but I don’t bank on it not. When cash is outlawed a lot of outlaws will still have cash, but it will be a crippled black market that operates on it. That’s why you want to keep your property unencumbered. It’s also why I’ve moved all of my deep savings and investment money into bitcoin. It’s the only crypto – the only money – that cannot be physically confiscated or completely turned off.
I say that with a new awareness that if there’s no internet there’s no access to digital anything – bank accounts, stock trading platforms, crypto wallets, precious metal exchanges… it’s all functionally gone. We got a taste of that yesterday when our phone and internet lines disappeared for 6 hours. Out in our rural setting, that meant a very still afternoon: no radio, tv, internet, or phone communication. In an emergency we would not have been able to call even 911, and we had absolutely no idea what was going on in the wider world. It was pretty freaky, under today’s circumstances, and gave me a new, deep appreciation for @Mots’ long-time preaching into the wind about alternative communications resources.
If electricity had gone down, too – as happens out here – we would have really been time-travelers visiting Vermont ca. 1850 – apart from the generator that can keep the refrigerators and freezers running for a week or ten days if we’re economical.
So, more gasoline. Also some tradeable precious metals for any upcoming black market or local trade. I’m thinking junk silver coins, especially, and small denomination rounds. This is not dry powder for the future rebuild, it’s informal currency. If dollars are illegal, a Central Bank Digital Currency will replace it and social credit scores will determine how much each of us gets and what we can spend it on. Unofficial economies will be necessary.
Build resiliency infrastructure, low on energy dependency. So, hand tools to do everything you’ll need to do. A greenhouse if you’re in cold country, because weather’s been abnormal these last few years; greenhouses give better control over internal microclimate. We just picked one up from Canadian manufacturer Planta Greenhouses, engineered to withstand the snow load we get. It’s got polycarbonate panels and a peaked roof to better shed snow – replacing our plastic-covered heavy-frame hoop house that collapsed under unusually sudden and very wet snow in February; it just didn’t shed as it always had. Get a wood cooking stove; hand tools for felling, bucking, and splitting trees. Insulate well. Have a hand pump for the well, a bicycle or two for transportation.
Establish a hidey-hole for emergency evac, and also to tuck away things some authority might want to confiscate. Get some game traps and fishing gear. Build a root cellar and smoke house/pit.
And for pete’s sake, if possible get out of urban/suburban settings. Choose small towns or rural villages/land. Wherever you are, start buying from local producers so they can survive to feed and supply you when you really need them – build personal friendships and relationships with them so they remember you and want to help you when their supplies are outstripped by demand. Make it a win-win relationship; it’s worth the investment that comes in the form of higher prices for goods you could get in commercial grocery stores or the big box stores that are produced cheaply for mass sales, and whose owners and managers don’t care whether you get some or not.
Get fit. Spend money on yourself – your health and vitality. Whatever that means for you: a fitness trainer, a whole-foods oriented nutrition counselor, a naturopathic doctor’s consultation and care, a mental health coach, etc. You need to be on the fewest medications possible for you at every stage of life, and in the best physical, emotional, and mental state possible at every age. Resilience is taxing; stress is more tax piled on. Gotta start with a good stock of health and vitality ’cause it’s gonna get hard, and then harder. If hard times make for strong men and women, only the all-around strongest will survive – and btw, muscle without mind and heart won’t cut it over the long haul.
@stealyourface is right, imo, that you want to look poor on paper, whatever your financial means. The State sees only 2 categories of citizen: those with excess resources, and those who need more resources. Guess how that plays out. So position accordingly, understanding that your annual tax documents document your relative position. (Property wealth is handled differently in different jurisdictions. In mine, the gap between property value and taxable income is used to calculate a “prebate” on property taxes, effectively reducing taxes progressively on the lower earning property owners at the expense of progressively higher marginal rates collected from the higher earning property owners. Also, second properties – second homes, residential rental, and commercial buildings – are taxed at a higher base rate than primary residences. Know your jurisdiction and position.)
Put food aside. And more. Tractor Supply has inexpensive food-grade plastic buckets for long-term storage of grains, cereals, dehydrated food, nuts. Metal trash cans are good for prepackaged goods, too. I find myself thinking that my deep pantry is not half what I should have for the long haul – especially considering our adult children might return when deep crisis hits.
Store food seeds; heritage breed, open pollinated. Heritage breeds provide more nutrients per mouthful, and are hardier across varying seasons and soils; open pollinated means you’ll be able to save productive, genetically healthy seed from one year’s harvest for the next year’s planting.
Buy key resource books in paper, or download from the internet onto paper. Visit the Survivor Library and download manuals and guides that speak to your needs and your particular passions and interests. File them in binders. So: a good black ink printer and an extra toner cartridge or two.
Weapons and weapons training, for hunting and self-defense.
Really, it’s an endless list. My priorities are: land, shelter and food production infrastructure, personal health and vitality, pantry, food processing (esp canning and dehydrating, secondarily smoking, then freezers), hunting and defense, and resource materials.