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Financially Preparing for SHTF
This is a discussion on Financially Preparing for SHTF within the General Prepper and Survival Talk forums, part of the Survivalist, Prepper, Bushcrafter, Forest Rangers category; Given all the possible SHTF and semi-SHTF scenarios that could occur, how should we manage our finances to ensure ourselves the greatest security? This is ...
Financially Preparing for SHTF
Given all the possible SHTF and semi-SHTF scenarios that could occur, how should we manage our finances to ensure ourselves the greatest security? This is a question Iíve continually researched over the past 20 years. In the course of that planning, Iíve come across a few ideas I think every prepper should consider. (Due to lack of space, Iím leaving out the reasons, -but you can ask in a follow-up reply.) Iíd also like to hear your suggestions.
- Have multiple sources of liquidity, and liquidity for any scenario, so that, no matter what happens, you can draw on at least some of those financial sources.
- Move your bank accounts to more than one co-op or independent bank that does not carry derivatives.
- Get out of as many digital assets, (ie. stocks, bonds, and cryptocurrencies) as is prudent. If you are retiring, consider cashing out of your pension plan and buying precious metals with most of it.
- Keep only enough money in your banks at any time to pay your regular bills.
- Keep at least 2 months of cash to pay all your normal expenses, in 5s, 10s, and 20s, and easily accessible. I carry $100 and a check in my wallet, $500 hidden in my car, and $7,000 in a secure safe at home. Buy a 10+ mile paper map of your area, and mark on it all places you might be able to use cash to get the things you can use, (including gas), if SHTF happens suddenly. (In an SHTF situation, always first offer to pay for items by check.)
- Buy and physically hold precious metals. I recommend both Gold and Silver Eagles. When SHTF starts, secretly bury the precious metals you wonít use and some of your cash in your back yard.
- If you donít have them, obtain credit cards from Visa, MasterCard, and another company. Request the highest possible credit and withdrawal limits on your existing credit cards.
- Pay off all non-fixed rate debts, or convert them to fixed rates. Even better, pay off all the debts you can.
- Get house and household items you will need during SHTF repaired, while you still can.
- Stock up on everything you normally use, especially if it is only made outside of the U.S. If you have room and money for them, apply this rule to barterable items, (like toilet paper, lighters, paraffin, and menstrual pads) too.
- Sell anything valuable you own thatís not worth keeping, and also learn barterable skills. Donít incur unnecessary expenses by learning to do without extras.
- Homestead your house and property.
- If you live in an area where house prices are inflated, consider selling your house, store the profits in precious metals, and rent until home prices drop. (In an extreme SHTF situation, few renters will be forced to pay their rent.)
- If you manage your own stock portfolio, create a stop loss for every stock you donít often trade. Also, learn how to short sell and buy puts.
- Keep your cryptocurrency in a digital wallet, and keep the wallet in a Faraday box. Keep your chipped IDs and credit cards in a Faraday wallet.
- Print all relevant financial info and balances regularly; donít ďgo paperlessĒ. Also, document on paper all of your valuable possessions for potential insurance claims.
- Keep up on financial trends through the alternative media, and adjust your financial positions accordingly.
Some really good ideas here. IMHO, being debt free is key. I have been debt free for 15 years, which has allowed me to save/stash dollars, buy precious metals, and purchase other hard assets. I only keep enough $$$ in the bank to pay my monthly utilities and such... and to buy groceries. NO digital assets beyond the ones and zeroes in the previously mentioned account. Land (owned outright), food, and lotsa lead! Try to plan being debt free at retirement, and you will never regret it.
I will choose to enjoy the journey that God has prepared for me. Hidden Content
You recommend getting out of stocks and bonds. OK. Then where are you going to get your retirement income from? If you are completely depending on a pension or social security then you are completely dependent on someone else who may or may not have your best intrests at heart. Social security is really a crap shoot. Congress has been running this Ponzi scheme for years and big cuts are coming sooner or later. And pensions aren’t much better. Most are very much under-funded and the Pension Guarantee from the government is worthless. I personally know people that got mere pennies on the dollar from their bankrupt Bethlehem Steel pensions.
Precious metals are a hedge. Not an investment. You aren’t going to get a consistant return from them so you can’t depend on them for retirement income. So that leaves digital investments. I don’t like it but I really don’t see any alternative.
SHTF the real issue will be holding on to what you have on hand. Security is number 1,2 and 3. If you have not invested heavily in Steel, copper and lead you are late to the game.
New life as a house husband, major shift in duties.
Karl Marx said, "Destroy their culture, rewrite their history. Ruin their art and literature, and defame their heroes, by offering fabrications to scandalize that which they considered good.
After reading this Obama said I am on it.
What do you plan on buying once the SHTF??
I've often thought with the exception of what material stuff we own, a person's wealth is nothing more than an arbitrary number out there in space. Bank accounts, 401k, retirements, just really a number, that could possibly go away. If a person knew that was going to happen, then he/she would take every red cent they could muster, and turn it into material things, land, equipment, things that could be traded......ect. Of course I don't know if it's going to happen, and I can't/won't gamble with my modest funds that I and my wife will have to live on once I retire, which is quickly approaching. It's a roll of the dice, one can only hope for the best.
Exactly! It’s a roll of the dice. So you prep what you can. Maybe invest a few dollars in gold or silver. Learn to garden. Try to stay out of debt. That’s the best I can do. No one except the super rich can prep everything they will ever need so there will always have to be some type of purchasing or barter system available.
I have put a large portion of my retirement funds into blue chip, high dividend paying stocks. IBM, Verizon, John Deere, etc. These stocks have all paid consistantly high (and increasing) dividends without regard to their underlying stock price. My reasoning being that if I am only used to living on the dividends, I don’t really much care what the underlying stock price is. Now if some catastrophic event occurs where the entire economy collapses, then I am screwed. But so is everyone else and I doubt a pension income will be very important at that point. If/when that occurs the only thing that will matter is guns and bullets and I’m pretty sure most here have that situation well covered.
While the OP has some good advice there is one there that I can't imagine anyone following.
Get out of as many digital assets, (ie. stocks, bonds, and cryptocurrencies) as is prudent. If you are retiring, consider cashing out of your pension plan and buying precious metals with most of it
Had I followed this advise 12 months ago I'd be almost $50,000 worse off. If I had followed this advise two years
ago I would likely be $90,000 worse off. Those numbers are substantial to me. Could I lose them in a flash of course.
What if SHTF doesn't happen in my life time? I can't imagine trying to live off social security. Prepare for the worst
of course. Don't sell yourself short for it though.
I think planning depends on definition of SHTF.
For most people SHTF is cancer or some health issue. Most bankruptcies in the US are health related. So move to a country with universal health care while you are healthy? Stay in the US get health insurance and try to eat and exercise so you avoid some health related issues. Don't smoke and limit alcohol to no more than a drink or two a day .
Loosing a job is a SHTF situation for others - If a large employer closes or moves it can devastate a small town. So the advice to be debt free and cash on hand is very good advice. even if you had a profitable business what do you do when the local economy tanks. I know a lot of good restaurants who went out of business in the 2008 recession folks stopped going out to eat when things got rough. How else to prepare for losing a job besides ash reserves- food stores, garden -tools/seed/space/knowledge, livestock. Maybe no new clothes but you can eat. Education/ skills- one employer moves away - what else do you know how to do/ For a young person - think health care - nurse, physician assistant , x ray tech or lab tech, as schooling goes, relatively inexpensive to get the certificates / diplomas , you make a pretty good living and you cannot be outsourced. Cars can be made anywhere inteh world.
In a earth quake/ wild fire/ flood / hurricane/ tornado - insurance/ insurance / insurance.
Nuclear attack or society breaks down - cash and metals are not going to help in my opinion. Long term what you need is seeds, tools, livestock , knowledge, arms, family and friends .
Survival: Actions I need to do NOW to live another 5 minutes to 3 days. Prepping: What I do to insure my family makes it thru an adverse event lasting 3 days to 3 months  Seeds and livestock: What you need for long term subsistence.
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