- Well, golly. Maybe this explains why Ben Bernanke’s economic concepts are so … um, oversimplified.
- Upcoming: This Friday is (once again) National Ammo Day. Maybe you could buy yourself a box of Glasers or other frangibles. You know. Just in case the airline doesn’t supply them.
- Good question: If you owe uncomfortable amounts of money, should you pay off debt first? Or should you set aside a fund to tide you over in case of emergencies before getting aggressive about your debts? Sierra Black of Get Rich Slowly has her thoughts.
- Bovard on the biggest threat to freedom.
- Wow. these people really know how to throw a protest!
Claire,
I have always lived within my means even though it meant not having lots of things I wanted and some things I needed. I always viewed debt as a sometimes necessary evil to be avoided whenever possible. Paying off debts has always been a very high priority for me.
That said, I think having a stash of cash available for emergencies is an absolute must. I don’t mean cash in the bank. I mean cash on hand. Enough to survive for several months if you are cut off from your source of income and access to your bank account. Your survival depends on being able to adapt to unforeseen problems and cash in hand will often be indispensable in that regard. Some pressing emergencies can’t be dealt with by barter.
The Fed Reserve’s first picture in the pdf says it all: a bunch of upright, uptight men and women sitting around a table making plans for OUR money. Where do these bozos come from?
I love the catchphrase of the Cannabis Party, urging people to “Live like it’s legal.” Beautiful! And applicable to most everything — except aggression.
In Bovard’s article, he asks “Have we transferred to government the rights that we previously condemned in slaveowners?”
Well…yes. Since The War Between The States, the whole of the country has been treated like a conquered nation. What was done to the South in the form of “Reconstruction” was extended to every state thereafter (albeit on a less obvious scale at first).
With the aid of corporatism and elitism, the government has set its foot on individuals and States alike, while calling itself “democracy” and pretending to be the benevolent Uncle Sam. The arrogant attitude toward other nations has now become the de facto attitude toward its own population.
hmm…..methinks thou hast well said…
@Fred, While I agree with you and do indeed have my own stash of cash I believe that this stash is mostly worthless over the long (6 months) term. I’m guessing that we are in the less than 10% (probably closer to 1%??) of the US population that has such a stash. How many stores, gas stations, etc. could/will stay open if 90-99% of their population can’t buy (no cash, no credit)? Unless there is a local producer willing to accept cash I doubt a stash is worth much. Why do I keep my stash? To pay taxes and/or mortgage – I won’t be kicked out of my home by the government or corporations.
Just a few random thoughts on debts vs cash:
I’m assuming that when it all takes the proverbial-you-know-what that money will be worthless unless people decide to accept it for whatever payment is needed….and any debts owed would suddenly be either collected immediately or forgotten about entirely due to the chaos of the crisis…..especially if something disrupts computers, then all records (personal info, balances) will be erased/unavailable regarding any debts…..- perhaps that’s oversimplifying, or maybe even dreaming (LOL) –
If a widespread disruption happens, it’s still going to take some time for the gov or whomever to begin to confiscate the debt collateral from all those people – thus giving the people some time to gear up to save it……But if it comes to that scenario then everyone’s properties (owed or owned) will be in some kind of jeopardy, if it’s easy to grab…..
I don’t have any debt or credit cards, and as for savings, up until not long ago, I had that – but then decided maybe it would be better to turn it into tangibles…..”stuff” may ultimately be worth more than cash (assuming it’s not converted to gold & silver, that’s a different story)…..If we all end up in trouble, the hordes will be looking for specific items like food, gas & guns…….
I agree with ff44 and naturegirl. My reason for having cash on hand is not a hedge against the complete collapse of the country/economy. I know of people who have had their bank accounts seized by the government for one reason or another. If they had not had several months worth of cash available to pay bills, buy food and gas, etc things would have been much worse.
When TEOTWAWKI comes cash is likely to be of little value but until that point it makes sense to be prepared for lessor events that can still ruin your life.
From Crown Financial (similar to Ramsey), Richest Man In Babalon, and Biblical teachings, we have put together and adhered to the following formula:
10%+ to charity/church
This supports society, the legit downtrodden, etc. and helps keep money in it’s proper place in our hearts.
10%+ to savings. After setting aside a grand or so in cash, and at least six months living expenses in savings, we put the rest in conservative investments. I would include a food storage program in that catagory.
20% to debt reduction. Did this for the first three years of marriage. Now debt free.
Live off the rest. All percentages based on gross income.
Anyone who focuses solely on debt reduction and ignores savings is gambling. And gamblers lose.
I’m in better shape than most. The question I’m facing is how do I pay for some major expenses. Do I spend my emergency fund or borrow money from the bank at 4-5%?
I don’t like debt and I think we’re about to see some massive inflation so piles of cash will soon be worth less (hopefully not worthless) so I’ve been using the emergency fund. However I’m starting to wonder if paying back a low interest loan with inflated dollars might be better.
Tom, I am not a financial planner, nor do I play one on TV. But using your emergency fund to pay for something other that emergencies defeats the purpose.
I humbled my college inflated ego and worked nights and weekends delivering pizzas (and cleaning the crappers) temporarily to fund some stuff that we needed early on. Money earned there went directly towards goals, and we resisted the temptation to live off it in any way or inflate our lifestyle. Thus when the goals were met, the job went away. Had I had better people skills, I would have waited tables and not put the wear and tear on my vehicle.
Any consistent odd job would do the same.