With our devastated economy and the potential for a total collapse of our monetary system, it pays — no pun intended — to understand the three layers of financial preparedness. When most folks think of financial preparedness their minds usually project those “invest in precious metals” commercials you sometimes see on certain news networks, particularly late at night. And while that is a good tip, precious metals shouldn’t be your first layer of preparedness.
The first layer, according to The Organic Prepper, Daisy Luther, — probably not related to Martin — is to lay the foundation for your finances. And that means paying off any debt you own and staying debt free. In a world like ours, this is a difficult thing to do, but you should attempt to avoid the use of credit cards and pay for things with cash. If you don’t have the money, on hand, twice over, to pay for something, you don’t need it.
Stock enough supplies in your home that you can go a month or longer without needing to spend money. Think groceries, laundry supplies, food for any pets you might have, and so on. Put together an emergency fund. This should be one months of your family’s expenses. Save more if you can though, because the dollar today is worth far less than it used to be, which is the whole reason for application of these three strategies.
Create a reasonable budget and stick to it. Any extra unnecessary expenses should be cut. It may take some juggling but once you have your budget nailed down you will be able to better live within your means and save money.
Layer number two is prepping for the worst case scenario. You want to build an emergency supply of food. Learn basic gardening skills so that in the case of a food shortage you can grow your own. Make sure you have everything you need to handle medical and potentially even dental issues. Create a store of non-food items you’ll need if things fall apart. Have a set of manual tools handy and organized.
The third and final layer, according to Daisy, is financial assets.
“Finally, once you have the other things handled, it’s time to focus on the bigger picture. A lot of folks make the mistake of thinking they should be hoarding gold and silver like a dragon, but this doesn’t come until after you’ve covered the basics. Once your preps are in order, your debts are paid off, and your home, vehicle, and family are maintained, then it’s time to put some money back for later when the crisis is over,” she writes.
“A lot of folks say that they use precious metals as a medium of exchange right now. I suppose that’s possible if you are dealing with folks who will accept junk silver dimes as payment or gold ingots. However, I see metals as more of a medium of savings than of exchange,” Daisy says in the post.
The author then states that the whole purpose of stocking up on these commodities is because they will retain their value even when that of the dollar sinks like the Titanic. Even if, for some strange reason, the world or our country has a different currency at that point, precious medals like gold and silver will still have value, which makes it priceless to have as your third layer.
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