I’ve pretty well settled on the 1.X series of “The Road Ahead” posts dealing with simple things the average Joe and Josephine can do to deal with the financial impact of rule by the Trimvirate of Greed and Envy. Now, a disclaimer: I’m not a financial expert, and anything I suggest is simply common sense, not advice from a competent financial advisor. If you can find some such person and are able to afford consulting with them, you might be well served to do so.
How to cushion the blows of a government ruled by he Trimvirate of Greed and Envy? One obvious route for common folks is to focus on real wealth: precious metals, ones home, etc. If you’ve already been setting aside resources in precious metals, good on you. Gold is good, but perhaps significant investment in gold is a bit beyond your means. If you need to start really small and build up, try collecting–or even small-time buying–pre-1964 US silver coins as a decent place to start. Even if all you do is keep an eye out for them in your nightly change, pretty soon you’ll have a small collection of coins that are worth more for their metal than for their face value. You might even find a few collectables that are worth more to a collector than their silver content. Cash those in for more silver–or even gold–coinage that’s not worth as much to collectors and keep on growing your precious metals pot. Silver and gold aren’t the only choices for precious metals, but they’re a very smart place to start as you climb the learning curve.
Another obvious place to build and/or protect real wealth is your home. Look around. Are there maintenance things that you’ve put off? Do them as soon as possible! Any capital improvements that have a good ROI prospect? Do them as well, as soon as you are able. Money–and especially sweat–spent here are better than money in the bank, even in a market of housing price downturn, especially if you intend to make your home yours for a long time. (Here at twc central, for example,we don’t plan on moving, and the bank won’t even own a piece of us after next year–but our “payments” will mostly continue in maintenance and improvements that have good ROI prospects.) Even at “depressed” real estate pricing, compared with other homes in our area that are selling, our investment in this house has a value that well exceeds inflation over the term of our nearly-retired loan. But do look very, very closely at potential ROI on further investments in your home.
Another way to improve your home investment is to accelerate your loan payoff. Look at how your loan is structured and find a way to pay a little extra on the principal with each house payment. Really own your home sooner. Sure, you’ll lose an interest deduction on your income taxes when you pay your home off early, but there are ways to deal with that, too, and if the SHTF and a really big financial collapse hits, you’d have only maintenance and property taxes to deal with–a Good Thing.
What? You don’t “own” your home (aren’t buying it)? If you’re single, consider this: we “talked” our single adult children into moving back in and saving the money they were throwing away every month on rent, etc. But do NOT just spend any money saved. If your parents are amenable to the idea, use the opportunity wisely. Learn what it is to truly live frugally. Become a tightwad and ELIMINATE every single solitary luxury item you can. SAVE every single penny you can and put it to work making money, so you can pay OFF any debt you may have accumulated, save for a home of your own, emergencies, etc. Learn to forgo that cuppa humongously overpriced Starbucks coffee, etc., and really save every red cent you can against future need. Learn to effect delayed gratification.
Of course, those same principles can be wisely applied by anyone.
Married and renting. Learn to live cheaply and save for a wise investment in a home you can afford. Dream home? Don’t count on it, and DO NOT PUSH YOURSELF into a home you cannot REALLY afford.
Simple things, eh? I’ll talk further on things like this as time goes on, but for a tip to a frugal living blog, just CLICK HERE. You’ll find further links there. Start your research going for tips, tweaks and principles of the tightwad living style. Prepare for the worst in the coming days of rule by the Trimvirate of Greed and Envy, or be expect to be caught with your pants around your ankles right when you need to move quickly.
Not a happy thought.
Do note: my lil automated “scripture of the day” feature on my right sidebar notes Matthew 6:19-21 today. Ironic? Not really. I’m not advocating, here, “lay[ing] up treasures on earth” but simply taking prudent steps to protect ones finances and provide for ones family, instead of relying on a fickle government run by people who do not know you and do not give a fig for you and yours. Do what you will.
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