Survival Financial Plan Elements
1. Find the cash to fund your
preparations
2. Create your Information Security
Plan
2. Plan for protecting
your financial assets during and after a crisis
3. Create emergency funds in
cash and a relocation bank account
4. Develop a Hyper-Inflation Plan
Being prepared for a short or long term crisis required financial
planning to effectively execute all your other preparations.
Everyone's plan will be different based on needs, size of group,
geographic location, potential crisis exposure, and resources. No
matter what your current financial situation is, you can create an
effective financial plan to reach your goals.
Step 1
Determine where your money is going and re-direct some to
essential survival goods and equipment. If you don't have a
budget, now is the time to develop one along with the self discipline
needed to stay on budget.
Step 2
Prioritize your survival needs from short term essentials to
long term plans. Start with a two-week essentials plan and build
from there.
Step 3
Create an emergency cash stash for use during a crisis.
During even a short term crisis you may not have access to your bank
accounts and stores may be unwilling or unable to conduct electronic
sales.
Step 4
If your survival plans include relocation to another area, establish an
emergency checking account in a bank in the community as close to your
intended retreat so you have access to cash at your new location.
Best solution is to use a bank where you live now that has a branch at
your retreat area.
Step 5
Create a Direct Deposit for any recurring income such as Social
Security, Retirement, Salary & Wages so you do not have to rely on the
mail and then having to make a trip to the bank for deposits. Use your
banks on-line system to check for deposits and withdrawals.
Step 6
Create a plan for bartering your goods and services in the
event of a financial meltdown. Even cash may become low valued
during a financial meltdown due to loss of confidence. Decide what
goods you can stock and what skills you have or can learn to survive in
a low-tech barter economy.
Step 7
Decide what you will do after a crisis stabilizes to earn a
living. A financial meltdown will cause massive loss of jobs and your
personal income. Decide now how you can prepare and get training
for skills to replace your current job. Having a skill set that is
different from your current career will be a tremendous financial boost
after the crisis stabilizes and a new "normal" is established.
Start a hobby that can be easily turned into an income producing
business. If you are creating a family plan, consider using family
members for your post-crisis business. Be sure they are included
in your new "hobby" and that they understand why you are making these
preparations. Select a skill that allows you to accumulate
the necessary tools, equipment, and supplies for the new post-crisis
business based on your current financial situation.
Step 8
Preparations for hyper-inflation involves two areas:
1. Make purchases of
necessary items well ahead of the beginning of hyper-inflation so you
don't have to pay inflated prices later. Other than food, which is
covered in other areas, clothing and consumables are the two major
groups to provide some personal protection against hyper-inflation.
Also consider stocking a large supply of a few consumables that can be
used for barter and trade.
2. Evaluate your
financial situation for weathering a hyper-inflation condition.
Look at where 401k and retirement accounts are invested. Discuss
with your financial advisor on how to protect your investments during a
cycle of hyper-inflation.
A long term
crisis will go through well defined phases:
-
Initial panic and unrest
-
Struggle to survive
-
Coordination between
small cooperative groups
-
Reestablishment of
control in society
-
Reestablishment of a
working value system
During the initial phase
of panic and unrest, if you are adequately prepared, you will have no
need to engage in any financial transactions. At this point, your
objective is to get your survival plan running smoothly.
The "Struggle to
Survive" phase refers to actions by the unprepared. This phase
may include mass migrations away from high-density population areas and
establishment of refugee camps. Be careful not to become to widely
known as a place that has lots of scarce resources and food. Expect
large numbers of looters and psychopaths to be traveling around your
area.
"Coordination between
small groups" will not start until physical security of the local area
is established. When prepared groups feel its safe to engage in cross
group exchange of goods, services and information, You and your group
needs to have prepared barter and services available to trade for thing
you don't have and service you need. The value of goods and services will depend on the
supply and demand, and when survival is the goal, demand for basic goods can become
very high. During this phase you will probably see the re-emergence of
farmers markets and swap meets.
Efforts to "Reestablish
Control" will not start to be effective until the wave of initial mass
panic response has been expended on the rocks of reality and people are
ready to be civil again, even if by a bit of coercion. During this
phase, beware of the negative effects of Martial Law that allows "legal"
theft of private property from
people who have prepared. Rationing by political favors may become very
prevalent during this time.
A new structured value
system will slowly establish itself as goods production and
distribution methods come back online. The economy will naturally seek to
stabilize a new value system. Old currency and bank accounts may
be semi-restored, but don't count on it. Also, be prepared for
creditors to start demanding payment of pre-crisis debts and loans which
can spark another economic crisis. In which case, just push the restart button.
Diversify for Survival
The same advice investment councilors give today will be true for
all aspects of your economic plan. Consider:
Barter: Be able to grow more food than
your group needs
Barter: Have skills that can be traded for material
goods or services
Barter: Stock extra items that will become scarce and in high
demand
Cash: Have a moderate amount of ready cash for initial phases of
the crisis
Valuables: Consider Gold and Silver coins as a post-crisis financial
plan only after you have completed all other survival plans. You
can't eat gold.
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