Before we talk about
money, consider that, beyond what you have in a file cabinet or safe
deposit box, many of your important records, assets, liabilities and
money are simply electronic records in a database. Both an
extended loss of power or a cyber-attack by a foreign government can
make all records and money in the bank unavailable or even disappear
until stability is restored.
Short Term Events
Preparation for short term events generally comes down to two
things:
1. Keep a substantial
cash reserve at home and in your bug-out-bag. Don't rely on Credit
or Debit Cards or Personal Checks when all the lights go out.
2. Monitor events
and your investments daily. Don't be surprised at the negative
financial effects of a forewarned crisis on your investments. Be
prepared to shift investments and 401Ks to more stable long-term assets
and investments.
Phases of a Long Term Crisis
A crisis that creates a lack of confidence in currency and banking
systems or creates a catastrophic situation that prevents financial systems from
functioning will be replaced by a barter system as a means for
people to acquire and exchange necessary goods and services.
Any 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.
Bartering
Your economic survival plan needs to include stocking of goods for
barter and perhaps development of a needed skill for service-goods
exchange. The goods that are great for
survival bartering during the first
phase may not be the same that are considered valuable in the last
phases.
Gold, Silver & Diamonds
Accumulating a reserve of currently precious materials, such as
gold, silver and diamonds for use during a crisis is a hedge for
after things are restored and can be used for maintaining value
during hyperinflationary periods.
If used during a crisis, you may end up quickly depleting your reserve at highly inflated cost
just to get food if you have failed to pre-stock a sufficient quantity.
Remember, things are only worth what someone is willing to pay/barter.
Next
Business
Survival Plan
See the ADVANCED
Area for Specific Plans
