Prep Updates 03/20/13

I recently had a comment/question posted which I would like to address.  To Lee, the reader who posted the comment, I’ll do my best to answer it here but please understand although I did limp my way through several business courses in college I am in no way a financial adviser.  I thought to answer it here because it seems like a question many might have, so I’ll take a stab at giving you my opinion.

PJ, being fairly new to prepping, can you guide me to further information on the advisability of keeping cash on hand? I basically live paycheck to paycheck, but wonder what the use of keeping cash on hand would be in the long run. I realize it would be helpful initially in SHTF, but wonder about long run and things like my 401K. Appreciated the guidance!

If any of you have kept up with my site/blog/ramblings over the course of more than a month you know i like to break problems down into smaller bites in order to attack them in sections.  Some might call this an fanatical dedication to bullet points, I simply call it organization.  With that in mind I’ll take a similar approach here although not necessarily in the order which the question was phrased.

1- The good news is that you (Lee) recognize that it is essential to have some cash on hand for immediate use after SHTF.  I wrote about the potential for using cash immediately after an EMP strike, but the theory holds true for many other disasters.

2- Ah yes, paycheck to paycheck.  Lee my friend, we have all been there and dare I say it…some of us might be there again at some point in our lives.  Just know that there were times in my own life when I stayed awake at night staring at the ceiling, wondering how I would put food on the table.  We lived on a diet of corned beef, canned corn and rice for way too long.  There were other times when I had to count out change on my table to scrounge up gas money.  The point is you are not alone my friend and the even better news is living paycheck to paycheck, while inconvenient, does not have to completely deter you from achieving your goals.

3- As to your 401(k) there are way too many unknown variables here which means I cannot in good faith attempt to tell you what to do with your retirement funds.  I can tell you that it does not hurt to somewhat straddle the fence with your overall prep plan, and by that I mean to keep contributing to your retirement plan if that is something you personally value.  You could do this while shoring up your prep strategy as well, nobody here is advocating that you have to be 110% ALL IN, forsaking that with which you do not agree.

I’ll close with this.  If you are fairly new to prepping remember to not get overwhelmed.  There is plenty of information out there on various strategies, some of which might contradict my recommendations, but the point is to gather as much information as you can before making your own informed decision.  Good luck Lee, and remember by being here you are already well on your way to being self reliant.

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Current events and opinion:

Chase Bank customers temporarily see ’0′ balance
PJ:  I’ve said it before and I’ll say it again, what is wealth if it truly is only 1′s and 0′s on a computer screen?  Sure this “glitch” got resolved but the weakness was exposed.  If you can’t go down to your basement and put your hands on it, don’t put 100% of your faith in it.  If a major cyber attack occurs and our networks get wiped out, that sweet little nest egg is long gone.

South Korea raises alert after hackers attack broadcasters, banks
PJ:  Continuing on with the hacking theme: Servers at television networks YTN, MBC and KBS were affected as well as Shinhan Bank and NongHyup Bank, two major banks, the police and government officials said. At least some of the computers affected by the attacks had some files deleted, according to the authorities.

Cyprus won’t stop a 20% U.S. stock rally: BlackRock’s Fink
PJ:  I hope not because I have an old 401(k) that I’m pulling the plug on this month.  Penalty schmenalty.  I want my fiat currency now before the next market crash so I can turn it into something of REAL value.

Family’s Home Raided over Facebook Photo of Child’s Rifle
PJ:  Facebook strikes again!

Thousands Line Up Outside Cal Expo Gun Show To Buy Ammunition
PJ:  So now they wait in line to pay ridiculous prices on ammunition.  Should have got it when you had the chance…

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