Step 2: Finances
This is an area I do not have a lot of experience in. I didn’t get a very good financial education when I was younger, because my parents didn’t get a good financial education when they were younger. My uncle gave me my first financial education book, and that helped a little, but it wasn’t until I found a book in a little free library around the corner from my house, that I actually started to GET IT.
So, I’m super new here and just testing the waters - basically don’t take financial advice from me.
But also, maybe don’t take advice from some old dudes that make money selling you financial advice - I’m sure you’ve heard their names (I’ve tried some of their ways in the past, and it didn’t get me anywhere).
The thing about financial emergencies is that the better state your finances are in, the less financial emergencies you will deal with in your life. I read a statistic somewhere that said 50% of Americans wouldn’t be able to handle a $500 emergency without using a credit card. Even though I’m not in America, it’s probably safe to say that’s applicable in most places.
The book that changed the way I think about my financials is “Her first 100k”, by Tori Dunlop. I think she’s doing great work - have a look at the info she’s putting out there. You might gain some benefit in your own life/finances and I’d say that’s a win. Whatever advice you follow, keep checking in to make sure it’s working/getting you to where you want to go. If not, it might be time to find a new “guru”.
Don’t buy things for prepping until you have an emergency fund
So financials for prepping: obviously you need money to buy things to be prepared, like extra food, water, fuel, bags, supplies, etc. But there’s a subtle art to stockpiling money in the form of an “emergency fund” that you’d be silly (yes, silly) to ignore. This will be what you turn to when the SHTF. Every extra cent. Every extra dollar you can find at the beginning - even before you buy a single thing for prepping - save it and put it in something safe that you can access at any time, and in something that makes you a little extra (like a HYSA). If you’re short on cash, this will be HARD. At first. And it might be hard for a long time. Things are way more expensive now than they were even 5 years ago. So I get it. But get this started if you haven’t already. Get it started now. Get your money for your bottle returns? Save it. Even if it’s only $5. Sold something on marketplace? Save it. Another $10. Birthday money? SAVE IT. Rebate from the govt? SAVE IT. Got an extra $2000? Then don’t touch it unless there’s a REAL EMERGENCY.
Don’t buy yourself a present - until you have your emergency fund all set up. And start stockpiling a tiny little stash of money that is only for real emergencies like:
an injury that keeps you off work/without pay
hot water tank blows up
you need medical attention and don’t have insurance (in a country like America)
your car for commuting to work breaks down
you need to travel to say goodbye to a loved one/friend who’s passing is imminent
a pandemic
emergency dental work after your kid smacks you in the face with a hairbrush (ok it was a broken nose, and since we’re in Canada, we don’t pay for this kind of health care. Dental though…that shit ain’t free).
The point is: this is not your vacation fund (a mistake I may have made a few dozen times, but it’s how I met my husband…), this is not your Christmas present fund (a mistake I’ve made a few times also), and it’s not “oh i have enough to buy that thing i’ve always wanted” money (Yes, i have done this many times also - SEE - I’m not the best for financial advice! But we’re all learning here.) This money is for real emergencies only, and if you keep adding to it, you’ll then be able to eventually buy all those things that you want outside of your emergency fund. Do the emergency fund stuff first. TRUST ME.
For all emergencies, you’ll be happy you have that little stockpile - whether you’re starting with $2 or $2000. This can also be where you source your little stashes of cash for your Bug-Out-Bags, or your Get-Home-Bag (more on those later). Follow the advice of the experts and save at least 3-6 months of living expenses before you do anything else (and no, $1000 is not enough for anything - have you seen the cost of a new dishwasher lately? Or a hotel room and a few days of eating in restaurants for a family of 4). Put it in a HYSA so that at least it’s not doing nothing and you’re making a little tiny bit of money with it. I know, it’s not much, but if you start out with $2 in your emergency fund, and keep adding to it, you’re gonna be real excited when one day you’re making $2 on your emergency fund in interest a month. This shit snowballs. Seriously. Do this. Then start tackling your debt. Then start taking the money you were putting on your debt and add it to your emergency fund and investments for the future. Slowly, but surely, you’re taking control of your finances and giving yourself more peace of mind, and more assurances in the face of whatever comes in the future. Because the future is coming whether you’re ready or not.
I started 3 months ago and have saved up a few hundred dollars (for prepping purposes). It’s not much, but it’s a start.
And do yourself a favour - start learning from some experts (not just any instagram bro telling you how to make money fast), or some random prepper website, and sorting out your finances today. You’ll be stoked you did.
Just a reminder: I’m no expert and nothing in any post/blog/section of this website should be taken as advice. I just want to be prepared so I can worry less, and enjoy life more and I wanted to share it with you! Have you taken your finance from disaster to totally prepared? Any tips/tricks you have for me - let me know! :)
