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Discussion Starter · #1 · (Edited)
Hello there folks,
I am fairly new to this way of life and this forum but I feel I have made big headway just in the last month with preps. I cannot believe how woefully unprepared I was prior to coming here. For that I thank you.

My current question has to do with how much money, in cash, people keep for emergencies. Assuming cash will still be king, at least at the beginning of a disaster, is there a general rule for how much to have on hand? Are there other forms of currency that you all are acquiring in place of cash?

I am ready to be educated!!! Thanks!
 

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Psalm 34:4
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I don't think cash will be more than neatly decorated toilet paper within the next year.
That's why I'm spending it now on food, guns, and ammo. Why save something that will be worthless soon.
 

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"Dolt"
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Hello there folks,
I am fairly new to this way of life and this forum but I feel I have made big headway just in the last month with preps. I cannot believe how woefully unpreoared I was prior to coming here. For that I thank you.

My current question has to do with how much money, in cash, people keep for emergencies. Assuming cash will still be king, at least at the beginning of a disaster, is there a general rule for how much to have on hand? Are there other forms of currency that you all are acquiring in place of cash?

I am ready to be educated!!! Thanks!
My personal rule is a minimum of 6 months living expenses. This include house payments, utilities, car payments, food, gas, and if you have them credit card payment.

Again this is bare minimum, it takes planing on your part, and time to save as most can not just drop this amount of cash into a safe over night.

On top of this minimum you need to consider extra for things like car repairs, home repairs, possible medical expenses, etc. Work on the 3 months then work up from there.

IMHO
 

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Discussion Starter · #4 ·
Thank you docyoung. I usually have that in a bank account, but I am wondering if atm's cease to work due to extended power outages, etc, and vendors cannot accept credit or debit cards and that kind of thing, how much to actually have in your home. Do you suggest having that much cash in your home? I think I need another firearm and a really good safe!!!
 

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Thank you docyoung. I usually have that in a bank account, but I am wondering if atm's cease to work due to extended power outages, etc, and vendors cannot accept credit or debit cards and that kind of thing, how much to actually have in your home. Do you suggest having that much cash in your home? I think I need another firearm and a really good safe!!!
"cash" in your bank account isn't really cash. You saw what happened to some banks, imagine what it will be like when they SHTF. It won't matter if you have a million dollars, you won't be able to get to it.
 

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I am whatever I say I am
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gold is best
I don't mean to re-start the eternal argument, but just want to say that gold is not money. Most people have never seen a golden coin and do not know how to value them. Keep at least 3 months of expenses in cash (dollars) on hand in small bills, $1 to $50 ($100 bills draw attention, especially if you are holding more than 4-5 of them in your hand). That will get you through a power outage situation (ATMs not working), or a bank failure.
 

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Discussion Starter · #9 ·
DownInaBunker- thanks so much. that is basically the info i was looking for. i will have to build up to that, but it seems like an appropriate amount to have at some future point.
 

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Cash at home, is a good ideal.

Not all disasters mean the end of the wold, but hurricanes (for me & doc), floods, snow storms, etc., can mean, as mentioned, the atm and bank computers are out.
 

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Shield Up Sword Drawn
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Gold is good for the future when the chaos is over. Then you have something to start over again with. But most people will not understand the value of gold as a currency. Silver is a better bet for dealing day to day however, change is even better. Buy quarters, nickles and dimes. This is currency and metals. They will retain some value even when paper money is valueless.

Think about it. Would you have rather had fists full of confederate money when it became valueless or 1/100 of that amount in coin?

If you had a few bags of change when everyone else has valueless dollar bills you would be considered rich. But the real valuables would be water, food, bullets, guns and fuel.
 

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Simple Man
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As of now I carry some cash, I am slowly growing the amount every payday. I keep it packed in my everyday carry/get home bag. All small bills ($5's, $1's and one $10). I also keep change in rolls, $20 in quarters, $10 in dimes, $4 in nickles and $1 in pennies. My goal was to keep $100 total on me at all times, but I think I am going to increase that amount to $135 ($100 in bills and rest in change). The rest will get stashed away for a rainy day.

Wow, I feel as is I have gone into too much detail, hope nobody on here tries to rob me now! :eek:
 

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Improvise Adapt Overcome!
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The problem I see with Gold, is that the value will not be appreciated by most people in a severe long term situation. If we are in an economy where the coin shops are no longer open, then trading Gold dimes with eachother is would have to be will be done.

A Gold dime is worth about $100.00, but hardly anyone knows that, and you couldn't convince anyone who doesn't already know. You'd actually be better off with paper money, because, even if it has become worthless, regular Sheeple will still value it more then Gold.

Gold is a good thing for situations where we will she horrendous economic times, but not a total social/economic collapse that blasts us into a primitive or third world existence. In that situation, bartering will be king.
 

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Forever Vigilant
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I doubt that the bottom will completely fall out. However, the bigger issue will most likely be extreme inflation. Looking back at historical chaos in civilized nations as it pertains to economic collapse and inflation, the problem becomes that your cash has very little purchasing power.

Cash will be good to have early on to use with those that want to trade commodities (food, guns, ammo, shelter, etc.) for cash. Those people will later find that they cannot buy back the commodities that they sold with the cash. As with any good investment strategy, it is best to diversify.

Cash in hand - six months of all expenses as a minimum as was already suggested
Food - non-perishable food and paper goods. The more you can stock up on the better. This food cache will most likely not become the end all food supply for you and your family, but a hedge against inflation where you can supplement with fresh goods that you will buy at the store.
Clothes - these get very expensive during times of high inflation. If you have growing kids, purchase 2 years worth of clothes, shoes and socks at the sizes you think they will be in the future.
Shelter other - If your home is not paid in full, you should consider setting up an alternate place to live in the event that you lose your job and cannot find employment. This is not going to be a house. This is going to be a small paid for place (100 square feet per person in your family) on a paid for piece of land. You should consider setting the place up with a couple of solar panels and batteries for power, plenty of fire wood (pre-cut and stored), filled propane tank, composting toilet, well water on the property, stream on the property, or rainwater catch system with cistern. Think self-contained and self-supporting. Chances are that you may not be able to afford public utilities or to move around much to obtain supplies. If possible, this alternate shelter should be owned by a trust, and not personally owned. In my case, my alternate shelter is a sailboat so that I can easily move on a whim.
Guns/Ammo - this should be self-explanatory. Purchase what you can afford.
Fuel - Fuel storage can be expensive, but try to start stockpiling in fuel drums. Get a pump. Once you get the amount you think is sufficient start rotating fuel out of the oldest drums or storage to your vehicle and refill the drums as it is used. You do not want to store fuel long term so rotate and use it until the SHTF.

The point? Commodities are King. You must have food, water, and shelter to survive. Get these now with your cash, then don't worry about cash too much after that.
 

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Happiness is 2 at low 8
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Gold is good for the future when the chaos is over. Then you have something to start over again with. But most people will not understand the value of gold as a currency. Silver is a better bet for dealing day to day however, change is even better. Buy quarters, nickles and dimes. This is currency and metals. They will retain some value even when paper money is valueless.

Think about it. Would you have rather had fists full of confederate money when it became valueless or 1/100 of that amount in coin?

If you had a few bags of change when everyone else has valueless dollar bills you would be considered rich. But the real valuables would be water, food, bullets, guns and fuel.
Yes, but... (there's always a "but") Prior to 1964 coins were made of silver, gold or copper. The metal in the coin was the value... Today the copper colored penny is copper plated zinc and has virtually no value. Nickles, dimes and quarters are 80% copper and 20% nickel; again they have no where near their value in the metal from which they are struck.

This means the heavy coins will have no more value than the worthless paper you talk about, they'll just be heavier...

Allan
 

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Modern day gold double eagles. You can get them thorough the US Mint but they are a bit pricey right now. If you need to sell one then you can go to most coin shops or any where gold purchased. You do need to keep track of what they are worth and some coins are worth more as a coin than the gold.
 

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Shield Up Sword Drawn
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The problem I see with Gold, is that the value will not be appreciated by most people in a severe long term situation. If we are in an economy where the coin shops are no longer open, then trading Gold dimes with eachother is would have to be will be done.

A Gold dime is worth about $100.00, but hardly anyone knows that, and you couldn't convince anyone who doesn't already know. You'd actually be better off with paper money, because, even if it has become worthless, regular Sheeple will still value it more then Gold.

Gold is a good thing for situations where we will she horrendous economic times, but not a total social/economic collapse that blasts us into a primitive or third world existence. In that situation, bartering will be king.
If you come to me to barter and you hand me a gold dime I am giving you no change. So you just spent $100 bucks on whatever it is that you needed when silver would have done the job. Gold is for the future after the troubles are over.
 

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If the economy tanks we are very likely to see a major inflationary period.

Right now the general direction is deflationary but most economists are saying that the fed printing trillions of dollars and pumping it into the economy will eventually be very inflationary.

Forget the 700 Billion dollar bailout. We are fast approaching 4 TRILLION dollars spent on repairing the economy and the end is nowhere in sight.

Dont believe me?
* $2T Emergency Fed Loans
* $700B TARP
* $300B Hope Now (the government's year-old attempt at mortgage workouts)
* $200B Fannie/Freddie
* $140B Tax Breaks for Banks
* $110B: AIG

http://finance.yahoo.com/tech-ticker/article/126117/Bailout-Price-Tag-3.5T-So-Far-But-%27Real%27-Cost-May-Be-Much-Higher?tickers=AIG,FNM,FRE,XLF,^DJI,^GSPC,C

That number is rising everyday.

If Fanny and Freddie get into more trouble the amount needed to cover them could be as high as 7 Trillion. There is talk of another tax break coming as well. Dont forget the GM bailout.

This total could easily reach 10 Trillion within a year.



Anyway back to the question...

Imagine inflation at 20% a year, which BTW is on the LOW END of what most economists are predicting. Do you want cash that is losing value at the rate of 20% every year?

Keep a reserve but no more than a few months worth. Of course if your job is in jeopardy then you might consider more.

Think about it this way, many food items have risen as much as 40% so far this year. If you used that money to buy a years worth of food, I think you'd be doing much better from an investment point of view, than holding onto cash. We have already seen what happens to the price of guns and ammo in an Obama presidency.

So here is my recommendation, which is also what I am doing to the best of my ability...

1) Minimum of one month and maximum of two months expenses in cash.

2) Minimum of one year of basic food staples.

3) Get into a regular monthly purchase plan for silver and gold. Dont go broke doing this, but put something in it every month.

4) Buy guns and especially ammunition. Many say 1000 rounds per rifle caliber, but I would advocate 10 times that at a minimum per rifle.

5) Dont spend a lot of time worrying about debt, other than say credit card debt for instance. Hyperinflation will make those 1000 dollar per month house payments seem a lot easier to deal with soo enough, IMO.
 

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Yes, but... (there's always a "but") Prior to 1964 coins were made of silver, gold or copper. The metal in the coin was the value... Today the copper colored penny is copper plated zinc and has virtually no value. Nickles, dimes and quarters are 80% copper and 20% nickel; again they have no where near their value in the metal from which they are struck.

This means the heavy coins will have no more value than the worthless paper you talk about, they'll just be heavier...

Allan
Metals will still hold more value then worthless paper no matter what they are.
 
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