Well, I finally unloaded (ha!) the last of that ammo I picked up a few weeks back. So..what to do with the lump of cash that resulted from it? Well, I have goals. I finished my Emergency Fund goal 11 months early and it looks like I just finished my HSA goal ten months early. (By the way, according to journalism standards you write zero to ten as words but any number over 11 can be represented in numerals. Check your AP style guide.)
So, when the Emergency Fund hit its 2022 goals I was able to redirect the planned monthly allocation elsewhere. And now that the HSA is topped off for the year I can re-allocate that funding elsewhere. Most notably into more silver. Goals remaining for year: silver, gold, Roth, and land purchase fund. Probably in that order. Even after capping the HSA for the year I still have enough left over to pick up another five of these, which will go a good ways towards lowering my required monthly purchases to reach my goal.
Fortunately, I’ve spent the last twenty years buying food, guns, ammo, etc, etc, so there really isn’t much else for me to buy in regards to preparedness….except, of course, for that Big Chunk O’ Nowhere. Still working on that.
I may have mentioned it, but my basic goalsetting paradigm is to increase whatever it is .. gold holdings, silver holdings, HSA balance, Roth balance, Emergency Fund balance, etc…by 50% from the previous year. In the last year or two, that’s become a tall order, obviously, as those balances increase. But, in the last year or two I’ve also been making more money…so I’ve been able to keep up with my rather unreasonable goals. In a few years, though, I’ll probably have to start stepping it down in order to keep things realistic. Maybe shave off 5% every year…increase things by 45% next year, 40% after that, 35% after that, etc. We’ll see.
I’m fortunate in that I’ve paid off the vehicle, house, debts, etc, and pretty much have no debt load to suck down money that would otherwise be free to use elsewhere. Also, I’m pretty cheap. As a result, I can chunk a rather large percentage of my income into things like metals and mutual funds. Part of it is just dumb luck and part of it is living a life of priorities. But, the final result is all the same… a bit better financial security than almost half of the population.
It’s often overlooked, but preparedness is about more than being prepared for a big crisis. Its also about being prepared for when there isn’t a crisis.
Good for you Commander. It sure is a nice feeling to be 100% debt-free and not living paycheque to paycheque.
Just this afternoon I was able to pick up a 1,000 round case of 5.56 Russain Barnaul ammo at a steal.* It sure is nice having some discretionary funds.
* Thanks to Biden, the gunshops around here are flush with the stuff.
Got the house paid off and try to build some better balances on some metals. Would like to see the balance on the Ira grow but you bet on a ponzu scheme it only grows as long as the suckers keep putting the money in.
Commander:
It would help a lot if you could point out at WHAT point do you say Gold -Good, Silver – Good, Prepping Supplies – Good.
It’s time to buy land.
Finding the right balance is hard…
Ceejay
Its subjective. Thats why I almost never answer any of those questions about “how much is enough” that pop up from time to time. For example, if I said I had two years worth of stored food, some idiot who thinks he’s being clever would say “But what if the crisis goes on for more than two years!”. And If I said I had fifty years of food they’d say the same stupid thing. If I said I felt comfortable with, say, 1000 oz of silver someone would chime in with ‘what about…’. Same thing for first aid kits…you make a list of what you have and someone jumps in with ‘but you dont have….’
So, no, I’m not gonna give a hard number on what I think is enough for me. I’ll know when the right amount has been reached and that it’s time to move on, but Im really not feeling like engaging with the pedantics by giving an exact number.
Commander:
I don’t mean whether you have X thousand ounces of Silver or whatever – I mean how many years of income do you feel the need to cover.
It will be different for each of us.
We all earn different amounts and can put aside at different rates.
Working out the “Sweet Spot” isn’t a hard-and-fast figure, it depends on our state of mind.
Sorry if I seemed to be prying!
Ceejay
Its not prying, but its still the same type of question. If I say “Yeah, I keep [X} years of income” some genius will comment with “But what if the economic emergency youre in lasts more than [X] years?”
Probably a good way to figure out how many years or months of income you might want to have in reserve (in cash, gold, whatever) is to think about the last really rough patch you hit, how long it lasted, and then work from there.
One of the perks of not having a family of your own is not having to worry about their future after you pass.
I have two cousins, both brothers who find themselves in a predicament. Both have never been married and have no children. Both are retire age and find themselves with too much property to own. Sell it is their only option. The older will likely pass away with several hundred thousand to spare in the bank. Who does it go too ? Be a shame for the state to be given this.
So be sure when you live your life, to also enjoy the fruits of your labor too. Because there is no hard and fast rule when your demise comes.
And then there’s the SLOW Crisis. Like the drunk on a very long winding staircase sometimes stumbling upward (a little better) but more often downstairs.
Where products get smaller, prices a little higher, shelves look less abundant, weekly paychecks need a little MORE from the savings to cover this week’s needs.
MOAR money to the “Social Safety Nets” so even MOAR fake money chasing the few loaves of bread on the shelves.
Not quite a crisis, more a slow cooking than a boil. Gasoline a little higher each week, Gov.com talking about “Price Controls” like they never read what HAPPENED the last few times they did that.
The Magic Phrases of “This time it’s Different” and Modern Monetary Theory says as WE Print our Money, so we can Never run out of it”.
Weimar Germany might have some interesting historical notes for the wise to read. Something about Price Controls, smuggling sacks of heating coal and potatoes into the wealthy who traded their Family Silver for them.
PanFamWar is coming, disease, famine and warfare to hide the “Elite” created troubles is coming.
Read Ferfal and his experiences in Argentina with a economic collapse. Lots of good info especially relevant timely info(not historical).
Good to hear you are doing so well Commander Z! You’ve not only provided good advice over time but set a very good example – thanks.
I would quibble with one point in that you are better off then almost half the population… I’ll guess you are better off than 95% of the population. Most have debt, don’t save or save very little and are not anywhere near prepared enough for more than a day or two of bad storms. You are the exception and I’m glad you are out there to show it can be and is being done.
Trust me, theres parts of my life where the majority of the population is probably in better shape than I.
it’s hard to do man, but get the hell out of dodge fast. I bit the bullet and did it 20 years ago and now I’m way ahead of the game. the longer you put it off the harder it will be. tomorrow never comes.
CZ this may be a opportunity to upgrade, maybe wheel and deal to better preps ie several modest guns for one or two top tier (.50 cal may be soon in hand),more canned beef,less tuna,freezedry machine instead of buying prepackaged,everyone can use a better knife. In other words quality over quantity-cry once on price but enjoy the quality.