Being a Prepper means being ready for anything, and that includes financial preparedness. Whether you’re new to prepping or you’ve been preparing for years, it’s never too late to start taking important steps to safeguard your finances.
You don’t have to be an expert in finance to make smart money decisions—there are simple things you can do right away that will put you ahead of the game. In this article, we’ll discuss 10 financial strategies that every prepper should consider when planning for the future.
Financial stability can help enhance your overall preparedness plan and help you build up the resources you’ll need in an emergency.
Establishing effective financial strategies now will enable you to be better equipped if a natural disaster or an economic collapse occurs.
The Importance Of Financial Preparedness For Preppers
For preppers, a sound financial plan means taking the time to save money and create an emergency fund in case of unexpected disasters. It’s also important to engage in financial planning activities like saving wisely, acquiring valuable tangible assets, and understanding leading economic indicators.
The idea behind financial prepping is simple: If and when things do finally fall apart, you want to minimize as much as you can, the effect that outside events will have on you and your loved ones. The more secure you are financially, the less likely you’ll be caught off balance by a financial collapse.
How Financial Stability Enhances Overall SHTF Preparedness
You can be prepared for any situation that comes your way by having financial stability – and it doesn’t have to be difficult or overwhelming. Financial preparedness is integral to a prepper’s SHTF planning, and the lack of a plan could leave you at risk in the event of an emergency.
Preppers with financial savvy stay away from high-interest debt, they focus on saving money, and invest in assets like precious metals to make sure they have more resources than those who don’t. Having too much money isn’t a bad thing; it can give you peace of mind knowing that you’ll have the resources necessary to survive during difficult times.
Sound personal finance habits are key to being prepared financially and having extra money for those unexpected rainy days.
Create an Emergency Fund
You should create an emergency fund to help you cope with unexpected expenses. Start with a goal to save at least 3-6 months of your living expenses to start developing financial resilience.
Here are some tips for setting up and growing your emergency fund: set a goal, open a separate savings account, make regular deposits, and if possible, add extra money each month.
Pay yourself first.
The Importance Of An Emergency Fund For Unexpected Expenses
Unexpected expenses will happen, so having an emergency fund is key to ensure you’re not caught off-guard. As a prepper, when you set up your financial preparedness plan, setting aside money each month for an emergency fund should be a top priority.
Having money set aside in bank accounts or other safe places helps to smooth the bumps when something unexpected happens. Preppers may also opt to invest in precious metals like gold and silver or even junk silver coins that they can use if needed.
A solid emergency fund is the short-range plan that protects your long-range plan when unexpected expenses do happen. It keeps your financial house in order.
Tips For Setting Up And Growing An Emergency Fund
Setting up such a financial cushion may seem like a big deal, but this isn’t a complex issue. I wouldn’t suggest getting any more complicated than finding a high-yield savings account that you can access quickly for this part of your plan.
Begin by using direct deposit to set aside money each month until you reach your desired savings goal. Challenge yourself by cutting back on non-essential expenses or finding ways to make more money – either through passive income sources like investing or taking on a side hustle.
With some planning and discipline, you can have an emergency fund set up in no time so that if unexpected financial problems arise, you’ll be ready!
Diversify Your Income
As a prepper, it’s beneficial to diversify your income for several reasons. You’re going to pay off debt at an accelerated rate, build savings, and you’ll be accumulating valuable tangible resources – not just assets – but resources.
Having an additional income is the next layer beyond having the emergency short-term savings account we were just talking about. Preppers are big on redundancy. You have long-term and short-term savings; you should have primary and secondary incomes.
When you commit to prepping, you’re committing to becoming debt free and investing in many other material resources. You’ve probably already asked yourself “Where is the money going to come from?” We’ve got some ideas…
The Benefits Of A Diversified Income For Preppers
Having two or three income sources is like a lifeline for preppers – you don’t want one random decision made by someone outside your home to derail your SHTF planning. Diversifying your income allows you to become more self-sufficient.
With multiple sources of income, preppers have the ability to pay off a car loan or credit card early, take a first aid or ham radio course, purchase generators and water storage equipment, and fund an emergency savings plan.
Diversifying your income also provides preppers with knowledge of different financial topics. This can be extremely beneficial when looking for ways to prepare financially during an emergency situation. We’ll come back to those financial topics later.
Different Ways To Generate Income Outside Of Your Job
Over 70% of millionaires have seven or more sources of income. Let that sink in…
The good news is that you don’t have to be a financially savvy Wall Street investment banker or stock market guru to diversify your income and prepare for a potential banking collapse or the next great depression.
There are many ways to generate income outside of your job. For example, you could start an online business, freelance, or get into garage sale arbitrage. Some folks work a second job at a hardware store to earn some extra cash while getting discounts on prepper supplies.
A powerful and fun side hustle is to find free stuff online and develop your barter and trade skills to acquire items you need for prepping. This will create extra cash flow while helping you develop a skill you’ll need in an economic depression.
Having multiple streams of income can help you stay away from personal economic hardship, and stay afloat during a financial collapse or if any of the various natural disasters occur.
Reduce Debt and Manage Expenses
Reducing debt and managing expenses are key components of financial preparedness for preppers. Reducing debt reduces your monthly cash outlay. A strategic approach to managing expenses will improve your financial stability.
The Importance Of Reducing Debt To Improve Financial Stability
The less debt you have, the fewer strangers you’ll have involved in your life and in your decisions about how you live your life.
Paying off debt is the key to financial freedom. It helps as you prepare for the unexpected. Everyone has their own idea of what it means to be financially secure and how to become self-sufficient, but reducing debt is an important first step.
Taking control of your bank account by reducing your debt ties up less money in interest payments and gives you more flexibility when it comes to setting aside additional money to purchase precious metals and other items on your prepper checklist.
Lastly, you’ll have more breathing room if your social security benefits are delayed or reduced due to government insolvency.
Strategies To Manage Expenses And Minimize Unnecessary Costs
Preppers understand that their financial security is key for survival in the event of a disaster, so it’s important to take stock of your current expenses and look for ways to minimize unnecessary costs.
Start by looking critically at your current spending habits over the last 6 months. Where are you overspending? Once you’ve identified areas that need improvement, make the changes. That might mean cutting out certain luxury items or downgrading to a cheaper alternative to save money.
This kind of knowledge, while it may sting a bit at first, can make a huge difference when it comes to saving tens of thousands over time. You may discover that you can redirect some wasted money toward stockpiling resources and a savings account without hurting your lifestyle.
Creating a budget will also help you stick to it. Decide how much money goes into each category like groceries, housing, utilities, transportation costs, etc. When it comes time to pay bills or do shopping trips, there’s no guesswork involved. It’s helpful to separate your “needs” from “wants.” This way, when times get tough or unexpected expenses pop up, you know exactly where your priorities are.
If you layer a bit of a secondary income on top of this and split the extra income one-third/one-third/one-third between paying down debt/building savings/and accumulating SHTF preps, you’ll be pretty surprised where you’ll be in a year.
Invest In More Than Just SHTF Preps
You, as a prepper, should seriously consider investing in tangible assets. This includes categories like precious metals, real estate, or prepping resources. Before you choose an investment, do your research and understand the risks involved. As an example, don’t buy a piece of land that can’t pass a perc test.
Investing in tangible assets will be important if the Federal Reserve becomes unable to keep banking transactions moving and people lose confidence in the American dollar.
The Value Of Investing In Tangible Assets For Preppers
Growing up, my Dad always told me, “Don’t ever sell your tools; as long as you have your tools you’ll have a way to make money.” Preppers recognize the value of having physical assets that can be used in a variety of ways.
Not only do they provide financial security, but they also serve as bartering tools and potential sources of income when times are tough. Tangible assets like silver and gold coins, land, collectibles, and hand tools offer preppers many advantages over conventional investments.
Hard assets tend to hold their value better during economic downturns and can be easily converted into cash if needed. Furthermore, these types of investments can give preppers some control over their situation because they own a tangible asset outright and have complete autonomy over it.
Investment Options: Silver And Gold Coins And Land
Preparing for the future can be daunting, but investing in precious metals and land gives you an edge – tangible assets that can help protect your interests and give you peace of mind.
With gold and silver coin you have two value levels of currency. Yes, with gold you can buy anything. But would you pay $100 for a $2.50 set of shoelaces? Have both silver and gold so you don’t cause yourself to overspend in tough times.
With a good parcel of land, you can cultivate crops. This investment will provide something that no other asset can match.
Preppers have long valued the importance of tangible assets as part of their financial preparedness strategies because when the going gets tough they’ll always have something to fall back on.
Tips For Acquiring Gold And Silver Coins And Bars
Understand weights. A Troy ounce is about 31.1 grams. A standard ounce is about 28.35 grams. A gold bar is about 10 grams.
Understand purity. 24-karat gold is the most pure gold. Anything less than that has been mixed with other metals. That’s not a problem so long as you know.
Buy from a reputable source. You don’t want to get suckered by a charlatan so buy from trusted sellers. A few names to look at are APMEX, BOLD, CMI, JM Bullion, ModernCoinMart, Provident Metals, and SD Bullion.
Don’t buy only the biggest or purest form. You’ll want coins (a.k.a. rounds) and bars in different karat weights. Just like you have different denominations of paper money, different purities and forms of gold and silver will give you different “denominations” so that you aren’t forced to overspend for a resource in an SHTF situation.
Dollar-cost average into your coins and bars. It’s very hard to time the purchase of commodities. Don’t hold yourself to that goal. Decide what your budget is and buy a little every month or quarter. Then set it aside. In time, your average entry point will be sound.
Hold it in person. If things go bad fast, you may not have the time or ability to travel to another city to get your gold and silver. If it’s not in your possession, you don’t control it.
Learn Bartering And Trading Skills
In the next great depression, barter and trade will be essential for survival. Acquiring skills and goods used for trade will be beneficial in that situation because you’ll be able to exchange items of value without the need for paper money.
Valuable skills or items that could be used for bartering include carpentry, sewing, gardening tools, canned food, and medical supplies.
Understanding the significance of bartering and trading as an alternative form of economic exchange can help you ensure your future security in the face of uncertain times. As we’ve seen in recent years, a recession or economic downturn can cause serious financial distress for individuals and families. If there’s a bank run, you may not be able to get cash to conduct purchases.
By developing bartering and trading skills as part of your prepping strategy, you’ll be able to weather the storm. Bartering and trading not only provides access to goods and services that can be hard to find during times of scarcity, but also allows you to build stronger communities with people who share your interests and values.
Done right, it’s an efficient way to get the things you need while helping others out too – which is why it’s so important for preppers to include this skill in their arsenal.
The Benefits Of Acquiring Skills Or Goods Used For Trade
In an SHTF situation, wealth is going to be redefined. Those who have the skills and goods used for trade will benefit immensely. You won’t have to build and grow everything you need because you’ll be able to barter for it elsewhere.
As people struggle to make ends meet during financial hardships, having certain commodities available for barter can provide a much-needed income. As an example, if you’re able to repair cars, you could offer your services in exchange for food from a local farm or other goods that may be scarce in an economic crisis.
Relationships formed through trading are often stronger than those based on money alone, and they can lead to collaborative efforts that create abundance and stability in times of difficulty.
By developing the necessary skills and stockpiling preps needed for trading, preppers can increase their financial security while making valuable contributions towards the well-being of their communities as well.
Understand Insurance Coverage
Understanding insurance coverage is a key part of any financial preparedness plan. It’s important to thoroughly review all of your policies and make sure you have adequate coverage for each type of risk.
Different types of insurance relevant to preppers, like home insurance, flood insurance, and health insurance, should be evaluated carefully to ensure they provide the necessary protection in case of an emergency.
Additionally, consider additional options like private supplemental policies or umbrella coverage to make sure you’re fully prepared.
The Importance Of Reviewing And Understanding Insurance Policies
It’s crucial to look over your insurance policies so you know what you’re covered for – don’t just take someone else’s word for it!
Too often, people assume they’re covered for a certain event only to find out that their policy doesn’t cover it. You should work with your insurance company as part of your financial preparedness strategy and give them examples to test whether or not you’re covered.
Not only does this help protect you from unexpected expenses but also helps ensure that you’re not paying too much for coverage that you don’t need. Having an understanding of all the different types of policies available can be very helpful when trying to make sure that you’re properly protected.
Knowing what type of coverage is best suited to your needs is a big deal. Taking time each year to review and update your policy is beneficial as well. This makes sure that it’s up-to-date with any changes in your assets or situation.
Different Types Of Insurance Coverage Relevant To Preppers
Let’s take a look at some of the different types of insurance coverage pertinent to preppers.
Home Owner’s insurance is a significant form of protection for any prepper who owns a home. It provides financial coverage in the event of damages caused by weather, fires, floods, or theft. Make sure that your coverage is high enough on your personal property to cover theft of your SHTF equipment.
Flood insurance is also necessary if you live in an area prone to flooding. It’ll cover damage from water entering your home from outside sources like lakes, oceans, or rivers and can provide relief if a storm wipes out your property.
Health insurance is another key component for any prepper, as it helps protect against costly medical expenses in the event of injury or illness. If you’re self-employed or have no access to employer-sponsored health plans there are options available like short-term health plans that offer basic coverage at reasonable rates.
Your car shouldn’t have just the State minimums on it. All that does is protect the other guy a little bit, while doing nothing for you if you’re hurt in the same accident. And it likely won’t replace your car. Your auto policy should protect you too.
You should also consider an umbrella policy that covers any gaps left by more traditional policies. This type of policy can be especially helpful for preppers who are looking for extra peace of mind when it comes to their financial preparedness strategy.
Develop a Long-Term Financial Plan
Prepping is a long game. Creating and maintaining a long-term financial plan is serious for preppers who want to ensure their future well-being.
Setting goals, saving for retirement, and preserving wealth are all important components of a comprehensive plan that will help you stay on track.
The Importance Of Having A Long-term Financial Plan For Preppers
It’s important to take the time to review and assess your current situation and create a plan that meets your needs. Prepping for uncertain events requires having a sound financial plan in place – one that takes into account natural disasters, a banking collapse, and other unforeseeable events.
Even if you don’t have much money now, having some type of long-term financial resources can help you work through financial problems during difficult times. That’s why it’s important to make sure you have sufficient savings, as well as emergency funds and tradable coins, set aside.
Having an emergency fund ready will also help you prepare for any sudden job loss or medical bills that may arise unexpectedly.
Your long-term financial planning should include both short and long-term goals for yourself, a wise budget to spend only what’s necessary while still putting some money away each month to build up savings and investments.
Creating a diversified portfolio with different types of investments is also important to protect against market volatility and inflationary pressures so you can maintain stability over time even if the markets decline suddenly or prices rise dramatically due to unforeseen events or crises.
Ultimately, having a solid financial foundation means being better equipped to navigate through turbulent times with greater confidence in knowing that your finances are secure no matter what happens around you.
The Benefits Of Setting Goals, Saving For Retirement, And Wealth Preservation
Making sure your financial future is secure can give you peace of mind and help you rest easy in knowing that you’re prepared for whatever comes your way. If the next great depression happens after you retire the consequences could be life-changing.
Setting goals will provide a roadmap that will help keep you on track. When it comes to retirement planning, think long-term and consider the benefits of starting early – even if it’s small savings each month.
When it comes to preserving wealth, there are strategies available to help protect what you’ve already earned. Investing in real estate or precious metals are just two examples of how preppers can safeguard their assets.
A comprehensive financial plan allows preppers to be intentional with their money now and later down the road. Actively managing investments, and taking steps towards financial preparedness, could provide greater security for those who want to be ready for anything!
Tips For Creating And Adjusting A Comprehensive Financial Plan
Getting a grip on your finances is key to ensuring peace of mind and long-term success, so it’s important to create and regularly adjust a comprehensive financial plan.
To do this, start by taking an honest look at where you stand financially. Look at your income and expenses and determine how much money you can put towards savings each month. Once you have an idea of your budget, set some short-term goals as well as longer-term objectives that will help you get ahead financially.
You’ll also want to factor in any potential risks when creating a financial plan. Consider the possibility of job loss or unexpected medical bills that could impact your monthly budget and derail your progress. If possible, try to build up an emergency fund in case of these kinds of scenarios.
Additionally, make sure to keep track of changes in the economy or market trends that could affect investments or other financial decisions you’ve made for yourself. With careful planning and regular adjustments, you can ensure long-term financial success!
Learn Basic Financial Skills
Part of what it takes to prepare for SHTF is to have a command of basic financial skills. These skills break down into budgeting, tracking expenses, basic investing, financial literacy, and understanding the stock market. These skills can help you afford the resources you need for any long-term emergency situation.
Understanding the stock market can help you make more informed decisions while you grow your money over time through stocks, bonds, mutual funds, and other investments. As an added bonus, it helps you keep your finger on the pulse of the economy.
Money Basics And Financial Literacy
Staying on top of your budget, tracking expenses, getting into basic investing, and brushing up on financial literacy can help you control your finances. Knowing how to manage your money is a key part of being a prepper.
With budgeting, it’s important to keep track of all your income, your monthly payments, and how you spend money so you can plan ahead for any unexpected costs. Categorizing your expenses will help you get an idea of where you’re spending too much or not enough.
As far as investing, there are many different options available, from stocks to bonds to mutual funds. You should either work with a financial advisor or do research on these investments before taking the plunge.
Finally, learning basic financial literacy will give you the knowledge you need to make smart decisions with your money. A good understanding of finance will go a long way in helping you understand how money works.
Resources For Further Education In Financial Skills
Your personal financial situation is integral to prepping, so it’s important to find resources that can help you develop your financial skills further.
There are many options out there and each one offers something unique. For example, there are online courses, books, podcasts, youtube channels, and even local groups dedicated to teaching financial literacy and investing strategies.
With so many available resources, you can learn the basics of budgeting, tracking expenses, basic investing, and more advanced topics like stock market trading or real estate investing.
You can read one financial book at a time and listen to a specific financial podcast once a week and this alone can help you improve your understanding of money and your personal finances.
Take the time to research different learning options so you can get the most out of whatever resource you decide to use.
Prepare for Economic Uncertainty
If SHTF is going to happen, it’s important to understand the potential impacts of economic uncertainty and how best to prepare for an economic crisis or banking collapse.
Knowing how to monitor leading economic indicators and how to adjust your financial plans accordingly can help you stay ahead of the curve if and when disaster strikes.
Taking steps now to protect yourself financially will be invaluable if another Great Depression should happen or another unexpected event occurs.
Potential Impacts Of Economic Uncertainty On Preppers
Feeling unsure about the future can be like walking a tightrope—it’s important to have backup plans in place to ensure you don’t fall.
As you prepare for SHTF, this means having strategies in place that will help you weather any economic uncertainty that might arise. This includes stockpiling food, water, and supplies as well as having multiple sources of income.
Preppers must stay informed about current events and potential risks so they can be better prepared when the unexpected happens.
If and when SHTF happens, every step you’ve taken toward self-sufficiency from building a financial reserve to stockpiling food to creating a bug-out plan can and will be tested. You just won’t know how, until it happens.
In an economic or banking collapse, paper money will likely be less trusted and less accessible. Your trading skills and the resources you’ve accumulated will be needed.
Ultimately, financial preparedness is key for preppers looking to protect themselves against uncertain economic times. As long as you take the necessary steps ahead of time, you’ll have peace of mind knowing that you’re ready for whatever comes your way.
Tips On Monitoring Economic Indicators
Staying ahead of the curve in turbulent economic times means keeping a close eye on certain indicators and adjusting your plans based on what you’re seeing.
As a prepper, it’s essential to stay abreast of current developments in the economy so you can anticipate any changes that could affect your financial strategies.
Start by familiarizing yourself with the most important economic indicators, such as the Consumer Price Index (CPI), Gross Domestic Product (GDP), Unemployment Rate, and the Monthly Jobs Report. Research how these indices are calculated and what they mean for economic growth or decline.
You should also monitor news reports about major market shifts, political events, currency movements, or other factors that could have an effect on your personal finances and SHTF plan. By doing this regularly, you’ll be able to spot trends early and make adjustments where necessary.
In America today, it has become increasingly important to stay current on international trade relations and what’s happening with key commodities like oil. If you’re concerned about an economic event, you should develop an understanding for how the largest economic players on the globe are interacting with each other.
By doing this regularly, you’ll be able to spot trends early and make adjustments where necessary. Staying up-to-date with economic events gives you the best chance of weathering an SHTF Situation.
Conclusion
We’ve discussed ten financial preparedness strategies for preppers. Take action and implement these strategies with your own plans.
Financial preparedness is a crucial aspect of overall preparedness. By following these ten financial preparedness strategies, preppers can improve their financial security no matter what comes their way!