Prepping in America Today: PT 1

in finance •  8 years ago 

The term "prepping" has really gotten a bad reputation through the mainstream media. Most people think of aliens, the rapture, tin foil hate wearing loonies in the middle of New Mexico, etc when this term is brought up. So what does prepping really mean? 

Well, like anything else in our society there are several "levels" of preparedness. 

Let me state that everyone is responsible for dictating their own situations and making decisions based upon their own research. These topics are simply food for thought. 

If you do not believe in "prepping" and believe the world is a safe and wonderful place than the following STILL applies to you! These are common sense preps.

I think the most basic and essential level of preparedness are those "preps" that help to secure your family by mitigating everyday (most likely) negative events. This could be seen all over this country during the 2008-2009 financial crisis. Many American's drank the cool aid and thought keeping up with the latest and greatest was more important than securing their future financial well being. Many became over extended through ever expanding available debt, until all the sudden it was not expanding anymore, rather contracting quickly. We all know what happened next, as millions lost jobs and their homes. 

Since we are in similar times now, let us address what can be done to mitigate the damage of things like job loss, accidents, house fires, etc.

First, are you currently living beyond your means? This will obviously vary from person to person, but simple questions like; Are you living paycheck to paycheck with little or no savings? If you are, how can you cut costs? If you feel your costs are already low, how to you earn more income? I am a big believer in working for yourself on the side using some skill you have or would like to learn. I am not a believer of going to get a 2nd/3rd job for $10 an hour. I believe this is a monumental waste of time that only drains your creative energy and pulls you further from your family. Another point is whether the costs of living in the area in which you reside are worth the job you are currently holding. EX: If you make $58,000 working in downtown Seattle, you are probably far worse off then someone making $42,000-45,000 in Iowa. Yes, I know, Seattle is much more appealing in most cases then a city in Iowa, but nice areas can be found anywhere and we are talking about getting your family out of a financial hole, not gazing at a sunset over the water. Not to mention that your commute in Seattle is probably eating another 2hr/day. When purchasing items be smart, in many cases quality beats cheap. If you buy an ax for $35 but you need 5 of them to get your through the next 5 winters than that $120 ax is probably the better option. Buy in bulk if you are going to use it! Countless times I have seen people grab a small bottle of ketchup/ranch or whatever from the store because it is cheaper, yet the price is 3X more per an ounce than what the bigger bottle is. Again, be smart make your dollar go farther buy treating your purchases with the attention they deserve.

A second item to look at is your housing situation itself. This is the most important step for those who want to move their preparedness to higher levels down the road, as your decision here will serve many purposes. If you living a county/school district/suburb that has experienced rapid real estate price increases consider selling now/soon. Once you do this, consider renting until there is a price correction in your area or move further from town where real estate prices will be lower/more stable and net the difference. Yes, you will have a longer commute, but if done right it will be well worth it in the long term. In the event of a real crisis, that 40-45 min commute will now be an asset, buffer zone, that keeps the riff-raff from your front door. Remember the term sell high, buy low. It applies to real estate. Note: this can be a very hard sell to your family as moving school districts, further from friends, ect will be headwinds in your decision.

Third, have your basic insurance up to date. Fire, flood, auto, etc. These are important to financially shelter your family from things that just happen. I do not purchase life insurance because I do not think it will be around by the time I need it. I think purchasing hard assets for my family to fall back on is a better option but again, I am not a financial adviser, just a personal opinion.

Lastly, every single person on this planet should have at least 2 weeks of food in their pantry, toiletries, and water available for their family. One gal a day per a person just for consumption is a general rule. 14 days X 4 people is 56 gallons. So, yes this a lot of water but it is essential. Power outages, snow storms, hurricanes, tornadoes, water supply poisoning, etc happen around this country every year. I do not see this as "prepping" I see this as common sense that anyone who cares about their family should address.

Surround yourself with good friends and family. I believe that the best times are behind this country(USA) in terms of "standard of living". We all must be smart and willing to be flexible to keep ourselves in the best situation possible.

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Great post