Investing and Economics
This guest post is by Augustino
A crucial part of my preparations for the chaos and turmoil that I sense lies ahead, is similar to a three leg stool. If either of these legs is removed the stool is rendered useless except perhaps for firewood. So the three legs to my survival stool are 1-Shelter; 2-Food & water; 3-Defense.
BUT keep in mind that the three legs of my stool MUST rest upon stable and level ground and that level ground is being financially sound. Financial soundness results from numerous aspects of my economic health. I feel that I must have a source of income, in fact numerous sources of income are better.
We have an eBay account whereby my wife sells art work. I also have an active Craigslist income. I sell this and that and when I see a yard sale I almost always stop, buy anything I think I can sell and then do just that. And speaking of yard sales I have as many of those as possible. I also sell items on several on-line sites where what I’m selling is appropriate.
Now one aspect of, and way to increase your income and create a positive cash flow, is to do away with debt. So for the most part, any extra cash I earn from the methods mentioned above, I use to pay off credit card debt. Over the course of many years I was not into preparing for the chaos that likely to hit the USA, I was one of those “sheeple” convinced that if I couldn’t pay cash, well then reach for the credit card! What a fool I was. Now the cards are gone, sure I have one for emergencies or car rentals but for the most part its cash or no purchase.
The approach I use is to put together a list of all my debt. I put account number; phone numbers; website addresses; BALANCES of course; interest rates; payment due dates & minimum amount due along with any other related info. This document is on my computer and I review it regularly to make sure bills are paid on time to avoid late charges as well as to consistently update my balances and keep a running total of debt.
It’s inspiring to see that debt figure go down, incredibly rewarding! I list my debt with the least amount owed first, next least amount and so forth. I target the card with the least debt owed and hit it with everything I can muster. As I see balances vanish I then shift focus to the next debt on that list. Doing this provides me with a degree of control over this debt, and psychologically what I needed is control. Now as I pay off one card, the cash I was sending that card now goes to the next card I’ve targeted for eradication.
And I’ll progress this way until ALL the debt is gone! Then the extra cash will go into a cash stash probably in silver, maybe some gold but if times get hard as I say they will, I feel that a well stocked basement with food, water, and other supplies will be far more valuable than a safe filled with gold & silver. To a hungry man, to a man looking to feed his family, a bar of gold becomes miniscule when compared to a bucket of dry food like beans and rice along with a few cans of SPAM.
I want food & water and couldn’t give a rats rear end about silver or gold. In fact the person with ample food & water and let’s not forget a means of defending those supplies, but a man with ample food & water can most likely end up owning a ton of gold & silver after the food and gas prices skyrocket due to a super volcano like Yellowstone or that New Madrid earthquake in west Tennessee.
Sooner or later the USA is sure to experience a Katrina like event that will spew an exponentially greater amount of chaos and inflation upon US. And those that are financially “fit” stand the best chances of waiting out this upheaval. The way I see it is that if a person, if a family is of the mindset to get their financial house in order, it’s safe to bet that they will have the degree of discipline and insight to make a solid prep plan that includes supplies, shelter and defense of those items.
So the solid, level ground that my prepping rests upon is being debt free.
This is an entry in our non-fiction writing contest where you could win:
First Prize) Winner will receive a Stealth Body Armor Level II vest courtesy of SafeGuard ARMOR™ LLC and a $150 gift certificate for Wolf Ammo courtesy of LuckyGunner.com A total prize value of over $600.
Third Prize) Winner will receive copies of both of my books “31 Days to Survival: A Complete Plan for Emergency Preparedness” and “Dirt-Cheap Survival Retreat: One Man’s Solution” and a Katadyn Siphon Water Filter courtesy of Mayflower Trading Company. A total prize value of $107.
Contest ends on June 5 2012.