Financial Prepping

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Caribou

Caribou

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I'm not looking through 23 pages of titles, if there is another thread on this then perhaps the mods can add this in to the tail of the previous thread.

Once in a while we need to think about prepping our finances. I suggest that the most important financial prep is to have enough cash to pay all your bills for eight months, that means taxes, food, utilities, rent/mortgage, insurance, etc. Having a buffer in case of illness, job loss, etc. will help protect you from loosing everything.
 
Caribou said:
I'm not looking through 23 pages of titles, if there is another thread on this then perhaps the mods can add this in to the tail of the previous thread.

Once in a while we need to think about prepping our finances. I suggest that the most important financial prep is to have enough cash to pay all your bills for eight months, that means taxes, food, utilities, rent/mortgage, insurance, etc. Having a buffer in case of illness, job loss, etc. will help protect you from loosing everything.
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That is a good start and Dave Ramsey finacial peace university can help. But that leads to to every day millionaires were one can give like no one else because they have lived lived like no one else.


Ben
 
Great subject Caribou.

I recall visiting an investment broker in in the early 1980s when I was a 2LT. He told me to come back only when I had enough cash for 60 days emergency. He wanted to see the bank statement before he would open up an account for me. Then he set me on a plan to increase my savings incrementally while dollar cost averaging my investments, more into savings, and part to my church. He taught me a lot in that request, and the importance of allocating the first part of your paycheck towards long term goals before you head out for the evening on paycheck Friday. That broker also pointed out some biblical passages that speaks to tithing, putting away during your productive years, etc.
 
Neb said:
That is a good start and Dave Ramsey finacial peace university can help. But that leads to to every day millionaires were one can give like no one else because they have lived lived like no one else.
Ben
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If you were able to prep for charity that would be a laudable goal but I'm just worried about my family at this point.
 
phideaux said:
Three words for financial freedom for being prepared financially
" Be debt free"

Jim
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Absolutely, in my late 20's I became ill and couldn't work for 8 or 10 months. I had a few months worth of food, a few bucks, but what saved me from loosing everything was that I had no debt. My mortgage was paid and I was current on all my bills.
 
Don't confuse altruism and charity. Altruism is doing without - and causing your family to do without - for the benefit of someone you don't even know. I'm not into that. Charity is sharing what you are able to share with someone who legitimately doesn't have anything. I'm very OK with that.

Becoming debt free has been my goal, and it has been met. I did that by being frugal, but not in the extreme. I fixed what broke rather than replaced it with something new, cook my own meals rather than go out to eat, produce as much of my own food as possible rather than shop for it, and I didn't spend money on stuff I didn't need. All this resulted in more dollars to throw at getting out of debt and, now, building a good savings.

You don't accumulate wealth by spending it.
 
Another step in financial prepping is to gather some PM's. This is a later prep, after all debt is cleared, otherwise you are paying interest on your gold or silver. I have heard recommendations of 5% to 10% of your assets should be in PM's as insurance against inflation. A can of corn is insurance also but you can only store so much.
 
phideaux said:
Three words for financial freedom for being prepared financially
" Be debt free"

Jim
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Yes. Whoever said ex-wives aren't good for something?
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She taught me the hard way not to live payday to payday.
Back in the early 80's, every friday she would be parked behind the workplace to take my paycheck shopping and to the bank.
When I got free, all I did for 10 months was pay off loans.
Then, for more months, I built a security-blanket in my checking account.
I swore I would never have to balance my checkbook again. (and have not had to)
The freedom from worry became priceless. :)
When I was injured and could not work for 3 months in the late 80's, it never even blinked.:thumbs:

It is so worth the sacrifice to cut the bonds and not live in fear anymore!
 
I retired debt free, then bought a tractor, I wanted one for years & I think my son can use it after I am gone.
My food, home & car are debt free/paid for, so if I have to i could let the tractor go back.
I however will pay it off in 38 months, interest free is always good.
 
Supervisor42 said:
Yes. Whoever said ex-wives aren't good for something?View attachment 59562
She taught me the hard way not to live payday to payday.
Back in the early 80's, every friday she would be parked behind the workplace to take my paycheck shopping and to the bank.
When I got free, all I did for 10 months was pay off loans.
Then, for more months, I built a security-blanket in my checking account.
I swore I would never have to balance my checkbook again. (and have not had to)
The freedom from worry became priceless. :)
When I was injured and could not work for 3 months in the late 80's, it never even blinked.:thumbs:

It is so worth the sacrifice to cut the bonds and not live in fear anymore!
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Hey!

That is my story!

Ben
 
I still owe on the car, but they gave me 0 percent for 4 years, the term of the car loan. every other bill is paid in full, on time. debt free except for property taxes and income taxes.

Irritates my MIL, who spent years telling us to buy bigger houses and go deeper in debt, and now they are stuck in a house they can't afford. :(
 
dademoss said:
I still owe on the car, but they gave me 0 percent for 4 years, the term of the car loan. every other bill is paid in full, on time. debt free except for property taxes and income taxes.

Irritates my MIL, who spent years telling us to buy bigger houses and go deeper in debt, and now they are stuck in a house they can't afford. :(
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You did good.

Once you you get ahead of it you can fly!

Ben
 
phideaux said:
Three words for financial freedom for being prepared financially
" Be debt free"

Jim
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I would probably rephrase that as Become debt free.

For younger people with plenty of work life left in them, borrowing money to buy an appreciating asset, can be a good long term plan.

Some assets also provide an income along the way.......which can help that asset to pay their own mortgage payments.

My farm did that - I bought it with borrowed money back when I was 30 years old and now it's value has quadrupled and it's income helped me to pay it off.

I doubt anyone could have saved up enough money in a piggy bank to buy nearly 400 acres of good land in a 40 inch rainfall area with cash.

Everyone should have a plan to be debt free at least a decade before they retire.

Never buy a depreciating asset (like a new car) with borrowed money.
 
I got no ex wives, but the wife I have had for 36 years, still teaching me things.
 
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