What is the reason why people keep their money in the bank? Is it because that’s what they’ve been taught to do…to ‘plug in’ to the system?
Why do we do that, and are there better things to do with one’s excess money than keeping it on deposit in ‘the bank’?
People put their money in the bank, partly because it’s just what they do… it’s what they’ve always done and so they’re going to keep doing it. It’s mainstream. It’s the expected thing to do. It has been programmed into their psyche. It is normalcy bias.
People put their money in the bank because most employers have ‘direct deposit’ for convenience, and it happens automatically. Digital digits. A digital world.
But what if you’re fortunate enough to accumulate extra money beyond your monthly expenditures? Why let it accumulate in the bank?
While people used to keep money in the bank to earn interest, the fact is that for years upon years there has been essentially no interest paid whatsoever on deposited ‘bank money’, so why leave it there?
People put their money in the bank for so called, ‘safe keeping’, right?
I suppose that people are generally uncomfortable keeping quantities of cash at home, although there are fairly easy measures to take which will help ensure its security…
Certainly today’s federal regulations make it difficult (and potentially suspicious) to transact quantities of cash – which on the face of it is disgusting – because it’s YOUR money… so most people will leave it in a bank (in the system) so as to ‘fit in’ and transact digitally.
But lets face it. It has seemingly become pretty risky to keep excess money in the bank – given the systemic risks that we’re facing within our current financial system. Additionally, an apparent fact is that your money on deposit is now considered ‘unsecured collateral’ with the bank. While your money is insured via the FDIC, the fact is that in a systemic financial collapse, there is only a very small percentage of FDIC money available (it was not designed for major bank failures), and you would likely lose your money – or spend years waiting to get any of it back if at all.
So if it’s risky to keep your excess money in the bank, and if it’s even more risky to play (invest) the stock market, then what is one to do?
One suggestion is to keep enough ‘rolling’ money in the bank to service monthly expenditures. Keep some extra there too, just in case you need a major purchase. But once you feel comfortable with keeping ‘enough’ in the banking system, then you might ‘invest’ some of your excess into YOURSELF, your preparedness, your self-reliance, your self-sustainability, your homestead, your security.
If you’re reading this blog, chances are that you’re not mainstream-typical. You recognize that we’re truly living in perilous times. You understand (at least generally) many of the systemic risks that we’re facing. You are probably more likely to ‘invest’ in non-conventional ways. You are probably becoming (or have become) your own banker.
Although sometimes I do break the following rule (sometimes to my detriment), it’s usually best to diversify. When we’re talking about what to do with one’s extra money, it’s probably a good idea to spread it around a few places. Don’t put all your eggs in one basket, but keep a few here, a few over there, and a few way over there…
That means keeping ‘some’ in ‘the system’. The bank. That means keeping some at home (a challenge while determining ‘how much’). Perhaps converting some of that cash into precious metals. But even more important (in my opinion) is significantly shoring up your preparedness and the tangible assets that will enable you to become as self-sustainable as possible.
We don’t know the full extent to which the system will collapse (it mathematically must – so don’t fool yourself that it will not). This is the challenge. If we only knew (the extent of the future collapse), then we could more effectively proportion our money today – in preparation for tomorrow. To prepare (invest) for a full-on SHTF collapse is a far stretch from investing towards a partial (for example).
But with that said, I do believe that one’s excess cash is FAR BETTER SPENT on setting up a homestead type environment (and all that goes along with that) BEFORE investing in other areas for diversification. The mainstream would scoff at this, but I really don’t care. At the most basic of levels, it’s about taking care of and securing YOURSELF before investing elsewhere. Invest in yourself first.
So again, if one is fortunate enough to be sitting on excess funds in the bank, why would one leave it there?
What are your thoughts on diversification of excess money? It’s certainly different for everyone, because everyone is individually surrounded by their own circumstances. But we could draw some hypothetical generalizations…
Disclaimer: This is not ‘financial advice’, although it is opinion…
0 (today) 2 (week) 15 (month)
Well my first gut reaction to the title is “because sheeple are foolish and uneducated”, after reading the article my first gut reaction still stands plus the word “stupid” in there somewhere.
I agree with you 1000%, money in the bank, 401’s, IRA’s, Savings and Loans, you name it is at 100% risk of total loss, even more so if invested in the Markets right now. Ohhh and BTW as of right now, the Asian is down, Europe is up and heading down, and the US is up and heading down FAST!!!
FYI, your buddy Barry is going on the tube tonight (un-State of the Union) and try to convince everyone it’s all Roses….. beware. First thing he’s going to say is how wonderful of job he is doing….. Any Bets???? $500 limit.
A question for those out there, Are you going to need to eat next week/month/year? Then why not “stock up” now at a lower cost and be money ahead, lets say we have 5% inflation, so you just saved 5% on the food for next year, on that same money, you would make what .02% on the money in the bank????? Same with any other consumable you may need.
Anyways, JMHO
NRP
PS; I pulled everything out Monday last week, before the worst beginning week in history, I figure I saved 10% from the losses in the market in one week, how did your stocks/401/IRA do?
Ditto NRP. I told a coworker to take his investments out last July while the market was up because a crash was coming and he did. He was happy he did, and happy you did because we don’t want a grumpy old NRP! 🙂
I invested my extra money into paying off my C-Cards and business loan debts, while starting my food storage plan for one of the reasons of inflation as you stated. I invested the cash into a sorely needed 4WD truck to get out of my driveway, a riding mower so I don’t get heat exhaustion, a security system with 2 more German Shepherds, some PM’s, a woodstove to save more money on heat expenses, and enough to have for a year’s worth for bills and emergencies. I am my own bank.
If I borrow from myself, I pay interest of 500%. That goes for everyone. That way I am always saving more money for myself and it keeps family members at bay. You should see how they look at me. :-0
Maybe all this is why E Harmony rejected me saying I was too unique for any guy to accept. 🙂
@ Stardust
HAHAHAHA, sorry, “Maybe all this is why E Harmony rejected me saying I was too unique for any guy to accept” Ya gata LOVE it when a dating service rejects ya…… Well maybe it’s not that funny, happened to me also on Match.
And yes I pulled at the right time, now completely CC free. “grumpy old NRP” LOL Yeah I have seen him before, NOT a pretty thing indeed. ;-(
Seriously I do NOT trust banks or the .gov, are they a necessary evil, yes, but they have out grown their pants.
NRP
I invest in two types of precious metals, silver (American Eagles) and lead (mostly 5.56, 12 gauge, etc) 🙂
OK, so not starting an argument but let me ask some questions. Do we know and are we sure that a collapse is coming soon? We have been talking about TEOTWAWKI since the fifties and it hasn’t happened yet. That means my whole life. Everyone says it’s coming soon and it might be but what if it doesn’t happen in our lifetime?
I have been prepping since before there were peppers though I have stepped it up over the last 5 years so here is my scenario. My home is paid for, I have years of food stored, I have means to protect myself and loved ones. I purchase PM’s on a bi-monthly basis. That being said just what would I do with the money I pulled out of my 401K or IRA’s or other accounts? Don’t get me wrong I am not rich and will need this money and it’s interest to retire on which comes in about 7 years so if they world goes to total Mad Max. Then we are all screwed anyway, if not then I would have shot myself in the foot.
I just believe that saving and investing is prepping also and unless someone can give me a hard date of the collapse I will continue to do so and recommend others do also.
poorman
all that is for certain is death and taxes (both good job security type situations….)
other than that, nothing is for certain, except, there is always a chance for some type of emergency, and being prepared for one emergency often prepare u for others.
Of course that’s part of prepping. Prepping is all about planning for the future. I think the key word here is EXCESS. If you don’t consider your retirement funds excess, they don’t apply. On this site there are a people who have extra funds to throw around. Then there are people like me, who can’t afford to lose the little they have saved. I made some changes so that what I do have is protected from some of the market losses. It is not “excess.”
The “you didn’t build that” crowd has been eyeing the retirement plans for years. They’ve tried a number of times to remove tax free/deferred status for retirement money, attempted to confiscate it and made it more difficult and expensive to save for retirement. They almost succeeded in getting pre-tax status removed from medical plans, FSA’s, HSA’s, and employer funded retirement plans as part of ACA, under the assumption that only the wealthy can afford these things. They desperately need more money for bread and circuses, and this is a simple way to get it. Sooner or later they will succeed, probably by taxing retirement plans so heavily that they’re no longer feasible as a savings vehicle.
I’m saving for the future but also planning for the possibility that such things won’t be here when I retire.
The groundwork for confiscation of private retirement accounts has been laid. Confiscation of private retirement accounts, which are usually ‘invested’ in the Wall St. casino would put the government in control of the means of production, something all good socialists desire.
What else do you think MYRA is for?
I hadn’t heard of this so I looked it up. Talk about creepy. Giving the gov’t a loan is never a good idea, and I could easily see it morphing into something nasty. The Obameister’s private piggy-bank, maybe. Administered by Comerica and sponsored by the Treasury Dept means that Comerica has been hired to keep the records but the money remains with the TD. Those who participate are putting their retirement into the general fund without knowing it.
People have been giving the Government loan’s for many years. That’s what Tbills, savings bonds, municipal bonds etc are, loans to a government agency.
Good morning and best wishes to all. But in reality, the word your _________, and fill in the blank with whatever asset you choose to think you own.
However, there is no such thing as ownership anymore. Taxes, licenses, fees, and liens assure that outright ownership is now impossible. Money is a medium of exchange defined in value by the Government. And sooner or later everything of value returns to the government because the government is the issuer of wealth and assets.
The assets ‘you own’, unless they generate more money than the cost of ownership, are not assets at all, they are liabilities. Even then you don’t own the asset. The government does, they just allow you to use them for their benefit. This includes the money, excess or not, that you have in the bank.
If they don’t own it then why did they issue you an account number? There are no exceptions to that rule: None. In fact, for those of you that think you are married, this too is untrue. The State brought your union together and ‘legalized’ it. The State sanctioned it, and only the State can dissolve it. My Grandparents were married in 1930. They did not have a Marriage License. There Union was recorded in the Family Bible and that was a binding Contract before Christ and all things Holy. When they stood before the Preacher and said, “Til death do us part”, that sealed it to the last heartbeat. Do you ever wonder why we have so many divorces these days? No contract with Christ, just the whimsical State, that’s why.
It doesn’t matter whether you are hunting, fishing, getting married, giving birth, driving a car, or attempting to start a business, the government controls it all down to the most minute detail. In closing, I very much agree with the author of this article, “Invest in yourself first”. But what if you have absolutely no excess cash and or just getting by? Well, rejoice, there is good news. Most of the items for sale to assist preppers are only nice to have, but not really necessary.
Last year a ‘financially depleted prepper’ introduced me to foraging. Foraging has worked out very well, and it can honestly be stated that I could live completely from foraging and nothing else. January has arrived and there are as many varieties of plants and tubers to eat as there were in the spring and summer. Of course I can’t speak for their availability in the cold country, but in South Texas abundance is the norm year round. Before you discard this advice, remember, I learned this skill from a homeless, or ‘home free prepper’, as she put it.
And in addition, no matter how much you prep, the jars and mylar will be empty some day and foraging will be the only answer. Knowledge is the greatest power we will ever have. Enjoy your day, spend it wisely, and Christ bless.
@ Andy
Admittedly at times you seem rather well versed in your scripture. Stating factual information and ideas is something that is admirable to say the least. Except for the part of “ownership”.
Let’s take a vehicle (fill in your own “stuff”) for instance. Once I purchase and pay the sales tax I actually DO OWN said vehicle, and can keep that vehicle without paying a single other “tax”/license on said vehicle for as long as I wish to own it. If I wish to travel on the publicly owned roads I will need to pay a Licensing/Use fee for using the roads BUT I still “own” said vehicle. So basically yes you do “own” items (fill I the blank), after the initial fees/tax is paid. Regardless of being an asset or liability, there is in fact private “ownership”.
“In fact, for those of you that think you are married, this too is untrue” Again your statement is not exactly correct. Marriage performed by any version of God, Holy Spirit, Buddhist Temple, whatever, is still a union of the people taking the commitment, a commitment that is not to be taken lightly. Your “government” marriage license is just a piece of paper to show the legalization of financial/legal/tax assurances that may fall under the aspect of “marriage discounts” for numerous reasons, it IS NOT the binding contract that every marriage ceremony includes (marriage vowels).
If you decide to break that “contract” under God, that’s your own personal hell you will be to work out with God when you shall meet. Let me repeat that so you understand, A marriage is NOT a .gov legal contract, it is a union under your particular God, if you only think it’s a .gov thing, than I really feel sorry for you. Next, do NOT even talk about “Til death do us part”, unless you have been there (which I have) do NOT even think you know what that means, period.
I believe you’re under the impression that as a prepper all we do is horde stuff “the jars and mylar will be empty some day and foraging will be the only answer” unfortunately this statement is quite the opposite of 99.99% of the preppers I know do.
Sure we store what is necessary for a sustained period without, but we ALSO learn, practice, obtain skills to not only forage but to grow gardens/food, raise livestock, hunt, fish, build shelters, endless list of skills needed to survive the “after” if all you know is “foraging” than you will NOT survive past the first “looter” that wants your grubs. Learning from a “Home free prepper” (HAHAHA I like that description of a Bum) may have helped you learn only one small aspect of survival/prepping but I sure as heck hope you know a LOT more than that, for If TSHTF there will be millions of millions of sheeple out there also looking for those few grubs.. “foraging will be the only answer” wow I just really mean WOW, I sure hope you don’t really believe that???? shaking my head here…..
NRP
I agree with the unsophisticated notion of foraging to survive.
My husband’s friend said he didn’t need to store canned goods because he had a rifle and knew how to hunt!!!
Well, so do a million others.
Also, living on meat is not healthy. I may not have fresh vegetables and fruits, but canned are better than none. And supplies for bread?? Don’t forget rice and pasta.
NRP and JJ: If you own the car, why do you have a renewable, government ordained, fee required driver’s license, inspection sticker, vehicle tag, and insurance? The vehicle is yours only so long as you meet government financial requirements…
I never said we shouldn’t prep, just that sooner or later we will be foraging. I prep, and am certainly not a hoarder. I most certainly do not agree with people that think they can survive on meat alone, by hunting, post-teotwawki. But if we can still garden, homestead, grow livestock, and continue on with other areas of life, then it really isn’t teotwawki, is it?
As far as you calling my friend a bum, the situation is she had a stroke and lost her business (a successful, but smaller flower shop. Extremely labor intensive). By the time she recovered mentally, regained the use of her right arm, and learned to speak again, it was much too late to salvage and rebuild the flower shop. She does the best she can, and is to be admired for her efforts.
PS: And the ’til death do us part’—my first wife was killed at the tender age of thirty-two by a drunk driver. Hurts, doesn’t it. Keep the faith, keep a clear eye, keep prepping, and learn to forage. Christ bless.
@ Andy
“why do you have a renewable, government ordained, fee required driver’s license, inspection sticker, vehicle tag, and insurance” these are all fees to operate the vehicle on a public roadway, that has nothing to do with the ownership of said vehicle, it can sit in your garage for year and years without all of those “government financial requirements” and still be owned by you. No differently than owning a can of soda, once you buy it you “own” it. Even if decide to drop the “government financial requirements” the vehicle is still mine, not now own by Joe-Blow-.gov. unless your stupid enough to get caught on the interstate by said .gov.
“PS: And the ’til death do us part’—my first wife was killed at the tender age of thirty-two by a drunk driver. Hurts, doesn’t it” You bet your ass it does, and if you really think that that does not constitute as an “The End Of The World As We Know It” than please tell me what does. Why is it everyone thinks a teotwawki always has to be a melt down of earths core all fire and brimstone BS? Losing a wife, as you know, is a changing end of the world event, period.
I apologize for the poor remark about your homeless/home-free-prepper friend, I was out of line. But I will stand my mark for stating that “foraging will be the only answer” is absolutely foolish for anyone that thinks there is an “only answer” and is totally wrong.
As far as hunting to live on, not going to happen, once 300 million people start to tromp through the woods looking for Bambi, heck I live in a well wildlife populated area and 80% of the local residents don’t “tag out” every year. and we know where the game is. Can you imagine what will happen when the crazies show up shooting everything that moves? Same goes for “Bugging Out” for the woods, it will look like a carnival hit. Clowns everywhere.
Lastly, if the SHTF economically and you “might” get your money and Safety Deposit stuff out of the Banks and Institutions, where are you going to spend it?
NRP
Sorry Andy but I have to agree with NRP on the hunting, foraging thing. Did you know that after the first great depression that deer were extinct in 22 states because of excessive hunting. I read that the deer did not reappear in some of those states for almost 50 years. All this during a time when the population back then was only about a tenth of what it is today. Foraging would take longer for things to deplete but the result would be the same. If you can’t produce what you eat, you will most likely be in that 90% that won’t survive the first year.
@Peanut Gallery: No, I was not aware that deer went extinct in 22 states, but did know that their numbers were severely depleted in all states: As probably all edible animals were. And that same scenario may very well play out again when the lights go out. But, and I may be wrong, I honestly believe the vast majority of Americans will not only surrender soon after teotwawki, but will actively seek the comfort of government camps at the onset instead of enduring the slightest hardships.
Yes, there will be some that won’t, but most will and that could save the edibles, plant and animal, from being depleted. We have all had these conversations before, so we need to get into the unknown areas. And for me that area was foraging. I’ve honestly never been so surprised at how a difficult task became so easy and natural. An example is when I raked just 100 sq. ft., plus or minus a little, in the forest, disturbed the soil ever so slightly, and was amazed ten days later at how many edible varieties were punching their way upwards.
Botanists say that a lot of these edible weed seeds can stay dormant in the ground for over a century, and down here south of I-10 it seems a never ending variety of edible plants abound, just waiting to be plucked and eaten. Anyway, that was all I was trying to get across in the beginning, is that foraging and supplementing our preps by working in harmony with what Christ has already provided for us abundantly and free of charge would be a very wise move. Best wishes.
Not to disagree Peanut but in that day and time while there were many less people many more of them knew how to hunt, fish and preserve game. I am of the belief that if TEOTWAWKI actually comes that the majority of people will die while waiting for the Government to help them. That being said you have a very valid point and I hope we never find out who is right or wrong on these points.
NRP, We are all glad that you have plenty. Because someone, anyone does not have any object, be it house or car, or shopping cart….it does not make them a BUM! I have known “home free” people, like Andy describes his friend, often get to the bottom because no one has been able to stop them from falling. All kinds of Poop events happen every day, to persons in all walks of life..Health issues can suddenly occur to any of us, and there not be enough money to meet all expenses. This is why we prep. Thanks to preparing for our winter, we are able to eat year round without regard to the soaring prices of medication or three extra sspecialists visits per month.
@ Just Sayin’
I agree with you, I apologized for my remark, it was out of line. Won’t say it again. If ya all want to ban me fine. I’ll depart no big deal.
I have been there BTW, at the bottom, a “Bum” and yes I was a BUM after losing everything the first time, not a politically correct “home-free” person. Also I have lost that wife of 28 years I talk about, and again hit rock bottom HARD and again lost everything and I do mean everything. I have worked my ass off over the past lifetime to build and get to where I am at now, with NO handouts from the .gov, or ANYONE else. I understand the tough life we ALL live now, but guess what, the only way your going to make it is to work for it, or Vote for O-bummer again and wait for the freebies. To me that’s NOT a living, nor was walking the streets as I once did with only what I had on my back and in that stupid “shopping cart” that I pushed for 2 years.
NRP
NRP, I would never suggest that anyone be banned from this site. It is well maintained and monitored, and I am aware this takes much time and effort. Nor am I the thought/posting police. I have been without a home for short periods, and it is not a pleasant experience. Having a vehicle to be secure in shelter is helpful. There are some places addressing this problem with mini-houses. We did have a few relatives that helped us until we could recover.
Insensitivity sometimes comes across when someone has dealt with the bluntness of living in a hard world. For me, I decided I would try to be careful to offend all equally…I have been guilty of insensitivity by bluntness in the past, and have been too blunt myself, when I did not consider what I said out of place.If no one had said anything, I would not have known it was offensive. BTW this is not a “freedom from offense” world.
I often go back and check my posts, before I hit the send button to determine if I have put “too much ” in them. I have found if I have to put something I am thinking in brackets it can be omitted without damage to my original post.
I agree. No need to ban anyone for an opinion. That’s what makes this site Great!!! I’ve learned a lot from reading what is posted here, especially from the ones who have had a rodeo or two.
The worst that happens is we all get a little worked up because this is information or topics near and dear to us. We all live in different states with mostly ridiculous rules that “bind” us in some way to the .gov no matter what we think.
We need to listen with open ears to the advice everyone lays forth and then decide if it’s viable to our own situation. That is what I believe prepping is about.(And having certain “stuff” squirreled away) Can it, bag it, hunt it or forage it…ALL good things to know or do.
Keep on writing and keep on replying, I’m counting on ALL of you to help give advice.. It’s a small world out there and it may become smaller if $hit does hit the fan. Sorry for rambling on…GOD Bless and keep prepping!!!
I do forage a lot, but that is not enough for me to survive. Even the primitive societies in the Americas did more than just foraging, they genetically developed and planted their food as farmers with squash, pumpkins, corn, peppers, tomatoes, beans, potatoes, and chocolate as long as 7,000 years ago.
The Chippewa up here harvested wild rice as their staple food. Not foraged. Harvested. They knocked the seed into their canoes, and at the same time cast seeds into the water to plant for the next harvest. They processed the rice separating the seed from the shaft and parched it so it didn’t take long to cook.
They also harvested maple syrup and birch syrup, hard work to make this sweet concoction, which is not foraging, it is manufacturing. They still smoke their fish for a living and they don’t just pick it from some plant and shazam! When natives didn’t have money, they used and still use these food staples for trading. Makes a great breakfast with wild rice flour blueberry pancakes with a side of delicious smoked whitefish.
Only foraging and nothing else in your case, good luck with that. I go further than that even if my food storage runs out including guns and ammo to protect it all.
Excellent article and topic to bring forward.. I realize that there are many who are struggling to make ends meet and it can be unpleasant and even perceived as rude to bring up a discussion with others as to what to do with “extra” money. Despite that, it is a very worthwhile discussion to have with others as not everyone is savvy when it comes to money or investments, especially when it comes to being prepared.
I recently had the opportunity to “diversify” some funds and these are just some suggestions as to how to do so..
1. I bought additional firearms and ammunition.
2. I purchased accessories for the firearms, (scope and night vision).
3. I planted fruit trees and purchased seeds.
4. I built a patio cover, (with insulation) so I’d have additional living space and make the interior of my home more cooler and less reliant on air conditioning in the very hot summers.
5. Purchased stores of food and water.
6. I bought precious metals.
7. I upgraded to a larger propane tank and buried it underground.
8. I purchased additional ways to cook food and filter water.
9. I purchased a solar generator.
10. I removed as much cash as I could from the bank, (while leaving enough for my bills and basic expenses) and secured it as best as I could.
Again, this was just my own idea of how to prepare, (it is not meant to “brag”) the best I know how and is there to potentially give others some ideas on how to “invest” from a preparedness standpoint. Those preparations weren’t done all at once and were purchased over a significant period of time.
My mindset is that if things continue to go in the direction I, (and many others) think they’ll go, these will have been much appreciated and needed investments. If “nothing” happens, nearly everything I’ve “invested” in will have inherent value and can be sold later or will simply be used or consumed anyway.
Good luck!
I like your practical list. We have thought out a covered patio as well. Plus we are looking at turning our 2 story living room into another room which would be another family room. It would expand our living space and increase the value of the home and make it easier to heat and cool. At this point in life my thoughts of preparing have shift from the emergency to retirement and aging. We are not rich but fortunately not “hand to mouth” either. There are different issues to consider when you prepared for retirement and aging.
“Government is the only institution that can take a valuable commodity like paper, and make it worthless by applying ink”
L. von Mises
I avoid counterparty risks at all costs. My current exposure is almost zero. The house is a problem. Never, ever buy paper gold or silver.
Learned a long time ago never to put ALL of my eggs in one basket.
It is interesting the number of people that tell me that they keep most all of their money in a bank account and or precious metals in a safety deposit box, within a bank. I have asked on occasion why don’t you keep any funds or PM’s at home and it is always the same answer, I don’t have any place to hide it, or what if it gets stolen at home?
I found it annoying as ever to be questioned at the bank by a teller every time I wanted to withdraw a couple hundred bucks from MY account. I always left the bank with the feeling “they did me a favor by allowing me to access my cash”. I ended the bank accounts years ago and only use a credit union for paying monthly bills maintaining a necessary balance.
I have kept some extra cash and PM’s in several places over the years with no problems. Keep it quiet and it will stay safe.
That’s something I can’t understand myself:
WHY do people still have access money in the bank?
It can’t be for the overly generous interest rates they are paying, can it?
‘A Fool and his Money are Soon Parted’.
My FIL did very well in the day with his investments and now retired lives off the interest. He uses his money to his advantage. But he doesn’t keep it in the main checking. His wife only knows a little about the money. She actually thinks they don’t have enough. But I’m concerned with everything I see and hear he may lose it all soon. He didn’t bat an eye when his accountant told him last year that he lost $20000. Figured he could make it back.
They have food in the cabinet and fridge for maybe 2 months for the two of them but the way things are going I’m scared. We will take care of them if we can but there also has been talk that if the world collapses they both will check out. They don’t want to be a burden since they’re old. But they both have such knowledge. I’m struggling what to do here.
Keep reminding those two precious souls that they, and the knowledge they have are important to you. Seek their advise and ask what they remember from when they were growing up. Ask specific questions when you can, and open ones when you can’t. Things like, What did they do for “extra needs”..? How did they stretch food out when their crop failed or they were “laid off from weather events”? Tell me about when (your husband ) was born… what made it easier, what made it hard, how did you get to the office/clinic/ hospital. Was he sick a lot?
Some funny things were passed from my Dad when I asked him. He told of GM selling eggs to the local grocer, for items needed, and as a result he would gather up a basket of acorns and try to take them to the store every two weeks or so, to sell as eggs…he was less than 3 and they lived about 2 miles from the store… GM and GP, did not appreciate his endeavors, but he had to keep tryin’,
We try to spend our money as soon as it comes in, keeping just enough to pay 2 months worth of bills. I would rather have hard assets than soon to be useless paper or digital numbers. We spread it around on various needs. We keep some cash on hand, but not too much as I fear that will lose value quickly when the SHTF.
When the SHTF I don’t care how much money or precious metals you have, you can’t eat or drink those. So I will give you $50 cash for a gallon of gas, what you have left is worthless paper and you are short a gallon of fuel.
Food
Water
Fuel
Alcohol
cigarettes
I pretty much agree with everyone here. My pension plan started tanking prior to 2008. Ended up losing my last permanent job at the end of 2007 so we ended up using my pension money to pay off debts, purchase new steel roof, propane fireplace and a woodstove.
These days we’ve been investing in canned goods, dried beans, mason jars etc. I’ve got some seeds but they’re not enough in my opinion. We need to get some shoes for hubby if we’re lucky, size 15EEEE. I could use more tennis shoes and some work clothes. Have enough fabric and notions to make myself “go to meeting” clothes.
Re-shuffled some financial obligations so now we’ll have more left in our pockets at the end of the month. Hoping that we can use the extra to keep stocking up. Noticed that one of the grocery stores put up a sign in the produce section saying that due to growing conditions in California, they had very little for sale. I say its a taste of whats to come.
When others around me comment on the state of the produce and higher prices, I’ll tell them its due to the drought in Cali and they look at me with deer in the headlights looks on their faces. Really, there’s a drought????? When did that happen??? Are you sure???
Making a list and checking it twice, sorry Santa. I want to get into those stores and clean up. I usually tell the cashiers, when they comment on the amount I buy that I also buy for my sickly neighbours who can’t get out.
I’ll keep investing in food and stashing cash in my private bank. The majority of the sheeple are beyond saving so I won’t waste my time trying to convince them of whats to come. Hard hearted, I know but sometimes you just gotta take care of those you love and yourself.
kk
Getting a lot of rain here in North Cali. Not enough to end the drought yet but looks like we will have enough to get food production back up some. I am always at how many people talk about how California deserves what they get and it should fall into the ocean without knowing that a huge portion of the veggies, beef, chicken etc come from there.
@ poorman
I’ve been following the news on whats going on in Cali specifically because of the fact that the state provides so much food for all of North America.
Yeah, I know that there are loads of people who state that Cali should just sink into the ocean but I’m not one of them. I have family in California and hate the idea of them getting hurt or worse if there’s a huge earthquake. When I met my husband he was living in Los Angeles and we had originally planned on my moving there.
Ignore the haters, there’ll never be a shortage of them.
I have taught online business for 10 years. It does not make me an expert by far with money. The CA drought has been shared in many of the students’ papers. It is serious and will impact our food prices even more. The last couple of years a garden has not worked. This year my plan is to get back into the potted garden again. It will give us the fresh veggies. I have also stored up a lot of freeze dried veggies.
I got everything out of my 401(k) last month (not that there was that much in there to begin with) and put it in a self-directed IRA. I’m investing in real-estate. Still in an IRA, yes, but better than nothing.
well, I suppose at least some on here bought a powerball ticket.
supposing you won…where would you keep that “kind” of money?
Honestly? I’d buy an estate, probably several, and stock them for survival. I’d be making sure my family and as many others as possible were able to survive. I’d be buying up open land in cities and converting it for growing space, with greenhouses and a wind or solar powered water supply so when the worst of any disaster was over there would be something to rebuild on.
If I had time and extra money I’d be creating a survival library in as many cities as possible, open to the public and with visiting experts to teach on survival topics free of charge.
That would probably use it all up. 🙂
LOL Anon!
Hmmmm, that’s a lot of money…..first, I will stay home…bake some cookies, watch a movie….and then play Santa to those who really need it and were not foolish in losing things because they are not sheeple.
Then I will go back home and have my entire town or county prepped with what they need. That should be easy, people there have been living this way for eons and are not bamboozled easy or go for the life of ‘there is an app for this’….buy livestock for everyone, water filtration systems, personal and house size ones….everyone gets a NBC suit, everyone gets all the meds if they needed and hire a doctor. Build a hospital, build schools, get books to build libraries…okay…home for me has a total population of about two million people for the entire country, so that would be an easy task…and then I will tell those here in the states who have given us a hand, that there is a place for them and their families (they are good people just like us here on the board-we think alike.
And yes, there is money for everyone here on MSB and for Mr. Ken to keep this site running at all cost :)))
Okay, that was my dream thinking….
A million for myself, the rest to St. Jude Children’s Hospital!
And Shreiners Children
okay…all, it is getting mighty close to draw time….
of course, there is the slim chance it won’t go, and come Saturday, be worth Two Billion
not to be a party pooper, etc….but those kind enough to want to help others by donating to organised groups…Shriners Hospital, Cancer Society, Pink Cancer Groups, Parkinson’s Society etc…Well, did you all realise how little donated money goes to actual research, or actual persons with said need? Very little. In past year I keep falling across article after article, and if memory serves, it is well under ten per cent. So over ninety percent of your generous donation will got to
Million Dollar Salaries for the Executive
Advertising
Some Black Hole
etc..
If I would ever win a lottery, even a small one, or somehow a Powerball, I would try hard to find other avenues to “help”.
I figure to win the Powerball Lottery, I have to somehow morph into a Black-Chinese female that ONLY speaks Spanish as the native language after FIRST getting struck twice by lightening on the same day.
Since that isn’t going to happen, I don’t play.
I believe that we are conditioned to keep our funds in the bank on the illusion of convenience for the Federal Reserve Cartel to use, manipulate and finally cut our collective hair with, ala’ Cyprus.
So, we opted a few years back to keep minimal amounts in accounts with our real wealth accumulated under OUR watchful eyes and security, so we control the access to it.
Was it easy to do? Sort of, now, it’s routine for us, and we can sleep far better watching market sings incompetents who’ve been elected as president, and those running for same.
We try to assist our grown children and their families in being better prepare through the “Gifts of Preparedness” for Christmas, Hannukah, Festivus, birthdays, etc.
I don’t play either, but it’s fun to speculate.
You put your money in a bank and it is no longer your money.
If the bank takes ‘bank holiday”, you cannot get the money out.
Besides the interest is near zero.
Put your money into hard assets.
Food, PM’s or what ever —
Who controls access to your “safe deposit box”? Who is really made “safe” by those things?
I like others keep most of my money in the bank of me. I bought some tickets for the power ball, I know the odds are mind boggling, like 292 million to one. What’s the odds if you don’t buy any at all? That might present a problem knowing where to put all them millions, maybe I should just sell my tickets. Oh that reminds me, my cousin Bubba won a million dollars in his state lottery. He gets a dollar a year for a million years. Just tickled him to death.
What to do if one wins the lottery? Buy your own island like Tahiti.
The odds are the same for every game because it tells the number variations will come up. What raises the chances of winning are the number of tickets with different numbers you buy.
I won $1 MM in the state lottery. Spent $995K on beer and whores. The rest I just wasted.
Systems of every type evolve and are eventually either replaced or destroyed by something. From this historical generalization I want to narrow the discussion to banks( as we know it) and the stock market.
Gold and silver were eventually replaced by fiat(paper) money. So my question is if the great financial collapse happens, which I believe will happen very soon, what will replace banks, fiat money and the stock market.
The stock market can not exist without banking and fiat currency as we know it. The government can easily print a new type of money but who would trust new paper with just a new color of ink? No one, certainly not me. Will the new form of money be digital data? This would be a very easy way for government to control our lives and tax us, etcetera.
I am sure some secret master government department has this all planned out. If you or I can anticipate this new form of government financial means of commerce then there is an opening to make a lot of new money. If you wonder why I ask this question go see the movie “The Big Short”. There is a lot going on behind the scenes.
Hey, maybe they have a nefarious scheme to abscond with the winning powerball ticket!
Fer Sure there is scheme afoot…
they are selling millions of these power ball tickets to foreigners, and now it is announced that yes, you can purchase one as a tourist, yes you can take ticket home with you, but you may not bring any tickets back in to the United States. It is against some Federal law, and will be confiscated by Border Security if found.
Powerball was asked by reporter, “does that mean that a Canadian or other might have the winning ticket confiscated by Border Security?” and the answer was “Apparently So” — interview with Powerball Authorities
Fer Sure..I see you mentioning tourists but I was wondering if illegals or refugees can buy tickets and win!? Wouldn’t that be a kicker!?
I think there is NO problem with any of those purchasing a ticket/collecting the winnings.
as a Canadian, who is a bit too far to drive down, I gave it some thought various ways to “get a ticket”, but really there is no way to get one/guarantee an ability to collect.
read quite a few articles and interviews with the Powerball “folks” in charge..
the latest interview stated (more or less) that yes they were now aware of this U.S. law about bringing “in” tickets (even ones purchased IN the states), and if a winner from abroad came forward (Canada or otherwise), they would “work with” them to cope with the border rules. Now to my mind that might well mean, golly gee, we will talk the border folks in to only confiscating half your winnings.
but, from what they (Powerball folks) said, in the couple of interviews I read, it matters not any one’s “status” (refugee/tourist/etc), only that they physically purchase said ticket themselves, in the Physical United States (as opposed to online/having it shipped to them/getting it free with Bakery Purchase as one store is doing for Canadians, etc). They seemed to be fairly adamant that the only way to legally get/claim a ticket winning was to purchase it oneself in the U.S., and physically claim it oneself in the U.S..
my understanding was anyone physically IN the U.S. can purchase/claim (criminal, El Chapo, Tonya Couch, Undocumented “worker”, tourist, or even a U.S. Citizen).
In IL, they are giving lottery winners IOUs. Not sure how that would be handled with the multi-state powerball game. This is blatant theft, as the state collected way more than the prize IN CASH.
I thought most contests said in the fine print “open to legal US residents only”.
okay okay, tongue firmly planted in my cheek,
maybe it is like the United States laws on “Natural Born Citizens” only can run for President….? Maybe if you’re born in Calgary, Alberta all is okay?….
no, I think the fine print on this lottery is different from what I have read in articles, but it is a good point to check out…
Well if you look at Greece, the barter economy is booming. Initially when the crash occurs, people will return to a barter economy. I read that a farmer in the crash crunched state was paying his workers with a portion of his harvest. He also would trade use of his farm implements with other farmers for use of their equipment. So I think initially that is what will happen. I also keep PM for times when the person I need to “buy” something from doesn’t want what I have to offer. After all, gold and silver have been used as currency for more than 5000 years. Made into coins for more than 2000 years. Even though the different Empires have come and gone, there gold and silver still hold value.
I keep plenty of items that I think will be in demand, but I also keep PM’s. I like to have plenty of options. I’m not sure if there will be a stable fiat currency in my lifetime, but when it comes, it will likely be a one world currency.
Let’s not forget that knowledge is your most precious commodity that cannot be stolen from you. Maybe you know welding, shoe making, Doctoring. This is just a couple of skills that will likely be in demand. You can barter your services for your needs.
@ Peanut Gallery
Spot on. Diversity is the key, knowledge and skills being part of it.
Doesn’t matter how much money you have.
Investing in yourself, with knowledge and skills. Are easy and only take time.
When things go bad, these are the things that will be priceless.
The basic tools to perform needed tasks, primitively.
Not a cordless drill but a hand drill or brace and bit.
The basics, before power.
As far as a hand drill or brace I suggest using them for a few weeks before you say they are the go-to tool. I have several cordless drills and saws, I bought Milwaukee M-12 cordless tools instead of the 18-volt ones for a few reasons. One of the big reasons is that they are 12-volt and I can charge them from one of my solar panels so I can continue to do good work if there is a grid-down event. Another advantage of 12-volt cordless tools is that when or if the battery dies I can power them from a 12-volt battery that is charged by solar power. All it takes is to solder a wire to the drill and run it to the battery. While cumbersome, it will work well. Also Milwaukee makes a quality tool that will last for years, my Milwaukee 12-volt impact driver is more powerful then my dads Porter Cable 18-volt one.
I can’t imagine trying to run a 4-inch deck or construction screw in by hand. It can’t be done unless it has a head on it made for a socket wrench. I also have thousands of deck screws put up (I have my own home repair business) for use down the road. They in themselves are a form of wealth as the prices keep gong up.
Virtually zero interest – saving up for retirement is difficult ! With the rise in food costs, that is a better investment as you KNOW you will need to eat something, regardless of what economy or job forecast you will experience.
A few years ago when the interest rate was so low, finally convinced dh that leaving XX amount in the saving account was a losing battle. He said but it does not cost us $$ to keep it in the bank, my reply was really?? You are telling me that if we leave it in to make pennies on the dollar for not having to pay xx amount dollars in service charges is worth it? He finally realized that they were playing on the mind set we were taught as children by our parents, and culture.
We pulled the money out but left about $20 in the account since we have to keep it open due to direct deposit every month.
The young lady was aghast that we would take out the majority of the money, she said are you sure? You are losing interest and we have to charge you a fee for being below the required amount. Looking at her and said at those interest rates our bank is offering, we can afford your xx amount you charge. Smiled and took our money and left. My piggy needed to be fed a whole lot more than theirs.
During this exchange I was starting to get rather peeved at the teller, knowing she was a young 20 something. We/I gave her the benefit of doubt since she was so young. Really…does get under your skin since it is your money.
As far as government and banks think (and act) it’s not our money, it’s their’s.
That attitude is what caused me to minimize my use of banks almost 20-years ago.
I do keep extra money in the bank. One of the things I established long agi is having four different credit union accounts. Credit unions provide better service and fewer expenses for those services. Having four means my money stash is diversified and risks are spread out. Just last week one of my credit unions had a computer problem for three days and I could not complete any transactions over the phone. If I really needed to get to my money or pay a bill I had three other options. I carry four ATM cards which means I can get the max from each card on the same day. I don’t typically need to do that but I did do it once to pay cash for a large purchase. I do sometimes walk in and get large cash disbursements with no problem. Admittedly these have been less than $10k withdrawals so no report required. I resent the limitations the government has placed on citizens but I can work within those limitations.
I am like you. We have accounts in a credit union and a bank. I figure if we had to my husband would head to one and I to the other.
This is the very question I am asking at the moment. My husband retired this month for the 2nd time. He is 71. We continued working in our 60s while others retired. I still work teaching online. After much thought we decided to close out several of the 401 type accounts. The money has been used to clear all debt and deepen the pantry to 6-12 months depending on the product. The vehicles were paid off last year. Now it is time to access what to do with the balance after establishing a 3 month emergency fund. We have been working at serious prepping over the last 10 years. So we have the silver and gold. I have to say at other points of life I did not think this would ever happen. We know we will not see the end of a mortgage in our life time. Having a VA loan has had its perks. I realize a month ago that if things would turn our son could “assume” our loan if needed. We have to plan ahead if we need to go into long term care. We all never want it but sometimes that is how life turns out. I like some of the ideas presented because this has been on my mind seriously over the last couple of weeks. Our timing to exit the retirement plans from the market was not our timing but just at the right time.