Top 10 Financial Moves To Prepare For Disaster

1. Cash is King

Now is a great time to put aside some emergency cash in your home. You won’t be earning interest on it but it will be accessible in a true emergency. Ideally you’d like to keep it in a fireproof safe. In terms of how much, consider 1 month worth of living expenses (more if you have the means). Remember, in a world without electronics (EMP, Cyber attack), debit and credit cards are just plastic.

2. Multiple Banks – Diversify

With economic instability all around us, banks failing is not uncommon. Now, in the US the government insures all accounts up to $100,000. However, that could quickly go by the wayside if the crisis gets worse. Hedge your bets and have money in multiple banks to diversity your risk. In fact, in the case of a run on the banks, you’ll be get more via the ATM ($600 max per day per account) with multiple banks.

Ironically, most bankers at the local level (personal bankers, branch managers, tellers) will tell you that you should only have accounts at one bank for “simplicity sake”…so that you can keep track of it better. (ed. note)

3. Multiple Credit Cards

The same theory holds for credit cards. When the SHTF (sh*t hits the fan), folks will be trying to get ahold of as much cash as possible. Having multiple cards gives you the ability to have multiple ways to buy necessities or get access to cash. Just don’t overextend yourself to set up these cards (keep low credit limits).

4. Checks, Stock Cert, etc.

In a worst case scenario, checks or other variations of IOUs will not hold much weight. Don’t rely on these methods as cash. Banks may stop cashing checks, honoring money orders, etc. One of the themes of these SHTF tips is to keep your assets as liquid as possible.

5. Gold / Silver as Reserve

What will hold its’ value is gold and silver. Follow the SHTF tips they did back in old days. In the 1930’s during the Great Depression in the US, gold and silver coins were in high demand as people knew they had value. The dollar bill was risky as it could be worth less over time with rising inflation. Have some gold/silver to purchase your staples if necessary. For buying silver, an excellent resource that shows you step by step instructions is

6. Coins vs. Bills

When people store cash they get $20s and $100s and sock them away. Remember, when the SHTF making change may not be as easy as it is now. Have small bills and more importantly, coins on hand to be able to pay the exact amount. When things go south, you’re not going to be so eager to say “Keep the change”.

7. Foreign Currency

Having cash in multiple currencies can be helpful depending on your plan after the SHTF. If you plan to leave the country, besides bringing your SHTF Tips, you’ll want to have the currencies of the country or countries in which you plan to move. In addition, if you don’t believe your home countries’ currency will hold its value, it can advantageous to buy some foreign currencies now and take advantage of the exchange rate later.

8. Investing Options

Similar to having multiple banks, it would be wise to have additional investing options. One of the best SHTF tips is to try to keep your money in brokerages or investment houses that offer a debit card or some other quick way to get cash. Ones that offer the option to instantly transfer cash to your local bank can provide you a bit more security. Make sure it is a place you can trust.

9. Family and Friends Are Coming

Remember, YOU may be prepared financially but many have not followed SHTF tips and will not have planned accordingly, include friends and family. So, when setting aside cash, be sure to include contingencies along the way. A mother-in-law with no one to care for her needs to be with you. Also, be telling them to plan as you are along the way.

10. Quick Cash

Remember, disaster does not announce itself. In some cases you may need to leave your home rather quickly and fumbling around looking for your cash is not ideal. Keep a stash in your bug-out-bag.

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