Do you know there is a storm coming? If so, how are you going to protect yourself? We see Greece in the news and the financial happenings over there. Let me sum up. Too much debt. When you have too much debt you can’t pay your bills. Then your household(country) starts to collapse. Since we are focused on the individual here, I wanted to give a list of the things you can do to prepare yourself financially.
- Get rid of debt. Start with credit card debt first, then move to more permanent fixed rate debt. I am willing to guess about 90% of your financial headaches come from consumer debt. Resolve to pay it off and never use one again.
- Put money into savings. Try to put at least 10% into savings. If you can put in 20%. Keep 6-12 months worth of monthly expenditures in the bank. You see as you pay off debt you have to put less money into savings. This frees you to spend/invest money in other worthwhile areas.
- Invest in only the best companies. Look for those with a track record of riding out downturns in the economy. Think big companies.
- Develop your local community. Find ways to bring your community together. Start a dinner group, gardening club, sewing class, firearms training, camping group, etc. Anything that will bring you and your neighbors together.
- Try to invest in land. Land that helps produce something. Maybe you just put a bunch of fruit trees, berry bushes, or other perennials.
- Become more informed. Learn about finance. Watch a TV show and pick out a term you do not know and learn it. Do that everyday. As the financial arena gets worse you will want to know what they are talking about. Also realize most of the people on TV have no idea what they are talking about.
- Don’t act in fear. Think before you do/purchase anything. Be frugal not cheap. Buy things which have value and will last.
- Try and increase your self-reliance and self-sufficiancy. Look at what you can do with the 6 tenants- Food, Water, Security, Shelter, Energy, Sanitation.
- Remember when you are prepared you will be able to prosper. Remember the best time to prosper is when you are ready. Those who have cash in the bank, no debt, and are informed will be the ones who succeed.
Making Life’s Road a Little Smoother.