Lessons of 2020
~ Nothing is guaranteed ~
“The more you know about the past, the better prepared you are for the future.”
-Theodore Roosevelt
This is NOT about COVID.
These are lessons 2020 taught us about our fragile economy and world.
Preparing isn’t only for “doomsday” scenarios. It’s about being ready for everyday challenges that life may throw at you. Whether it’s job loss, facing paycheck delays, or dealing with an illness that prevents you from getting groceries, being prepared can help carry you in these times of need. Think of preparing as an extension of your emergency fund.
Moreover, preparedness can help you during economic downturns and potentially help you capitalize on opportunities that may come during these times. As the saying goes, more millionaires are made during market crashes and recessions than at any other time.
These are divided into two sections. Take a look and see if any of these tips could benefit you.
Build A Budget
A budget is more than just a list of expenses and income; it’s a strategic plan or roadmap for your financial future. A budget will also help you stop bleeding money which is very important if you feel we are coming into recessionary times. It can help you prioritize essential expenses and savings and avoid unnecessary spending. This will help you stay on track with your financial goals. Additionally, cutting back on non-essential expenses can better position you to capitalize on opportunities that may arise during a market crash or recession. A well-structured budget is one of the most powerful tools at your disposal.
Here are a few steps to creating a well-structured budget.
Identify your essential expenses. You must cover these non-negotiable monthly costs, such as housing, food, transportation, and healthcare.
Allocate Savings: Once you’ve accounted for your essential expenses, the next step is to allocate funds toward savings. This includes emergency fund, retirement savings, and short-term savings goals (home/auto repairs, vacations, weddings, etc.).
Cut Back on Unnecessary Spending: Review your discretionary spending to identify areas where you can cut back. This might include entertainment, shopping, and subscriptions.
Remember to regularly review your budget and adjust as needed to ensure you are making progress toward your long-term financial goals.
For more information and several ideas for creating a budget, check out the Budgeting page.
Secure Your Income
A steady income allows you to maintain your standard of living, pay essential bills, and avoid accumulating debt. It also helps reduce stress and anxiety, leading to a healthier you. Recessions often lead to higher unemployment rates, so take steps now to ensure a stable income. This preparation can help you weather potential job losses or reduced work hours during times of economic uncertainty.
Make yourself indispensable to your employer.
Show them you are reliable - Work when scheduled, maybe even showing up a little early and staying a little late.
Show them you are flexible - That you can work when and where needed, even if it’s not your normal schedule or department. Be knowledgeable in other areas or departments and be willing to help in other areas if needed.
Show them you are a valuable resource - Keep up with industry developments, advancements, and trends. Be a mentor by sharing your knowledge and helping others grow. This can enhance your leadership skills and make you a key player in the organization.
Show them you are a team player - Cultivate good relationships with colleagues, supervisors, and clients. Having a strong network can make you more valuable.
These are a few things that could make you a more valuable employee, and help you retain your job if layoffs were to occur.
Increase your streams of income.
Multiple income streams can help ensure you still have some income coming in if your employer is affected by a recession. Just like the adage: don’t put all your eggs in one basket; by diversifying your income streams, you can ensure not to lose all your income if something happens to one stream or another. Maybe even aim for income streams from different sectors/industries, as a good hedge against any disasters that might happen.
A few ideas could include a part-time job, investing, real estate/rental properties, creating a business or starting a side gig, writing a book, creating a course, and/or selling items online.
Create a Solid Emergency Fund (Super Important)
This time period has been one cluster of disasters. It went from “two weeks to flatten the curve” to an almost global economic meltdown in just a few years. The saying, “There are decades when nothing happens, and then there are weeks when decades happen”, is very much making sense right now. We suffered shortages of consumer goods, job losses, ransomware attacks that shut down gas stations, credit card systems, and even a large human resource software system (Kronos) that inhibited millions of employees from getting paychecks on time. We’ve also had supply chain breakdowns, major inflation, large catastrophic storms, and wars. This could all be a very devastating problem financially for anyone living paycheck to paycheck.
Having an emergency fund is imperative. None of us are immune to these crises or disasters. Having at least a 3-6 months (or 18-36 months if nearing retirement) emergency fund could help ensure the ability to buy groceries and pay bills if something happens.
Emergency Fund Tips Learned From 2020:
Log into your bank accounts frequently to ensure your balances are correct. Some banks have suffered system outages resulting in accounts showing $0 balances. Be sure you know roughly the amount in your accounts to ensure you will not lose your money. So many of us rely on information being online when we need it, but with the many outages and hacks, we’ve learned that will not always be the case. I suggest saving a printout of your accounts occasionally that you can use if you have to dispute any balance discrepancies.
Have a cushion in your accounts, especially if using debit cards. With the rise in gas prices, gas stations have increased the dollar amount of holds on their transactions. This means when you swipe/use your debit card an automatic hold gets placed on your account until the actual total clears your account. Some of these holds have been $175 per transaction and can take up to a week to fall off. This has affected some individuals’ ability to purchase other necessities like groceries. Ensure you are leaving yourself a cushion in these accounts for just this case.
Have emergency cash on hand: We can learn a lot from past disasters. After Hurricane Helene, many of the affected and some of the surrounding areas were only accepting cash. This was due to losing electricity and some of the banking servers in the flood, making it impossible to process credit cards. This highlighted the importance of keeping some cash on hand.
Keep a little cash in your vehicle (hidden well, of course) to afford you the ability to purchase gas if the credit card systems are down.
This came from personal experience several years ago. We were leaving a family gathering and had approximately an hour drive home. We stopped to fuel up on our way home but realized the entire block of this city was without electricity. The cashier said he could not process credit cards at that time, but we could get fuel if we paid with cash. Thankfully, we had cash and were able to fuel up. Now I try to keep emergency cash for just this scenario.
Optional: Have a Stock Up of your most used shelf-stable groceries and supplies. I think of this as an extension to my emergency fund. After 2020, I realized how fragile our economic system and world are, and how important having a small stock of groceries and supplies can be. This can help carry you in times of need. For example, if you lose your job, you can rely on your stockpile leaving more cash for other necessities. This can also be invaluable if you or a family member is sick and you can’t get to the store. These supplies can help you get by until you can shop again. Additionally, having a stock-up can be a money-saving tool, as items tend to rotate when they go on sale. Purchasing multiples of an item when it’s on sale allows you to potentially wait until it’s on sale again before buying more.
*Most say it’s not a good idea to keep your emergency funds in investments, as those could be down in value when you need them, or it could take longer to withdraw your funds due to banking/government regulations. However, others say your emergency fund should be in something harder to touch, like a “break the piggy bank” scenario. Do your research to find where you are comfortable keeping this money.
S.W.A.N. = Sleep Well At Night number
How much should you keep in your emergency fund? This is a common question with no one-size-fits-all answer. Most suggest 3-6 months’ worth of expenses while others may only suggest one month or even up to 12-36 months’ worth of expenses. This is due to the different life stages, priorities, goals, and risk tolerance levels. The goal of an emergency fund is to relieve stress by knowing you are prepared to handle unfortunate events. Finding the right number for your emergency funds will help reduce your stress and improve your sleep, which in turn will benefit your overall health. Remember, Health IS Wealth!
We know it’s wise to keep some cash at home, but too much can be risky due to theft, fire, or natural disasters. Similarly, while savings in a bank are safer, they don’t grow wealth and could be at risk during banking issues. One way to find the sweet spot for your emergency funds is to use the S.W.A.N. method—your Sleep Well At Night number.
S.W.A.N. Method Steps:
Start with Cash at Home: Save cash at home until you reach a point where having more makes you uncomfortable. You start to worry that the amount is too risky or would be too devastating to lose if something should happen to your cash. This amount is your S.W.A.N. number for your home cash emergency fund.
Move to a High-Yield Savings Account: Next, deposit money into a high-yield savings account until you feel uneasy about having more in that account. This becomes your S.W.A.N. number for your savings account emergency fund.
Apply this method to other funds: Continue this process for any other types of emergency funds you have.
When you find the balance that feels just right—not too little, not too much—you’ll sleep better knowing you’re prepared which could lead to a healthier you.
Go to Savings to learn how much you should have an emergency fund, where you should keep your emergency fund and tips to help you save for your emergency fund.
Go to Stocking up if you are interested in learning more about stocking up.
Cut Grocery Costs
Groceries are where most people blow their budgets, so budgeting and meal planning are more important than ever during recessionary times. Here are a few tips that might help cut grocery costs, if needed.
Take inventory of what you have before you meal plan, and only look at sales ads after you plan your meals.
This will help you plan meals around items you already have on hand limiting food waste.
SuperCook.com, MyFridgeFood.com, and Allrecipes.com are a few websites that let you search for recipes by ingredients you already have.
Planning your meals around sales ads can lead to more unused food that will be wasted costing you more money. Instead, plan your meals around what you have on hand, and then tack on a sale item such as a roast, and save it for next week’s meal plan.
Focus more on fruits and vegetables as your main dish and add your proteins as a side dish to your meals.
Fruits and vegetables are usually cheaper than the proteins.
You might be able to grow some fruits and vegetables at home.
You could stock up on fruits and vegetables more easily than a lot of proteins.
Don’t shop hungry! Create a grocery list and STICK TO IT.
Eating before you go grocery shopping could help cut down on impulse buys making it easier to stick to your list.
Focus on recipes that will help stretch the proteins, such as
making stir-fries, casseroles, soups, and kabobs,
adding your proteins on top of salads,
substitute quinoa, lentils, and beans for proteins.
Stock up on shelf-stable items you normally use when they are on sale. (More on this is listed below.)
Some items will also rotate when they go on sale, so if you buy extras when they are on sale, that could help get you by for a period until hopefully, that item can go on sale again. This can be a great way to save money.
Make Freezer Meals and/or Pantry Meal Kits.
These are meals you prepare in advance, ready for those busy days when you don’t have time for extensive prep and cleanup. This could help keep you from relying on fast food or the expensive unhealthy prepared box or frozen meals at the grocery store.
Intermittent Fasting
This is a concept several have said they use for health reasons and/or to help save money on their food budgets.
*I am not a nutritionist, nor have I heard this suggested by a nutritionist, so make sure to do what is best for your health. Remember your health is one of your largest assets, so if you’re interested in intermittent fasting, do your research and speak with your physician about what could be right for you to ensure you are not jeopardizing your health and costing you more time and money in the long run.
Go to Groceries and Gas for more tips.
For the grocery list I use, click here.
Pay down and avoid debts.
“The rich rule over the poor, and the borrower is slave to the lender.” Proverbs 22:7
Whoever controls your money, controls you. This is why it’s crucial to get out of debt and stay out of debt.
Avoid financing things that do not generate income. If it doesn’t put money in your pocket, do not go into debt to purchase it. While some use debt to make money, this should never be attempted without a fully funded emergency fund.
If you decide to take on debt, especially with a potential recession looming, ensure you have ample savings, the ability to repay the debt, and a contingency plan in case of job loss. Avoid high-interest rate loans, variable interest rate loans, and adjustable-rate mortgages (ARMs), as these can be detrimental during recessionary times. Remember, market gains won’t help much if you’re paying more in interest on your debts.
Go to the Debt page for tips and strategies about paying off debt and knowing the difference between good debt and bad debt.
Diversify, Diversify, Diversify!
While it’s useful to study charts and history to predict trends, the future is uncertain. No one knows exactly what will happen or when. The best strategy is to ensure your investments are well diversified.
Diversify your money into different assets such as cash, savings, stocks/ETFs/Index Funds in different sectors, precious metals, and cryptos.
Gold, silver, and other precious metals are not necessarily assets used to get rich, but they may be a great way to store some value during recessionary times.
I also recently came across inverse ETFs and found them intriguing as a potential hedge against recessions or depressions. While I’m not an expert and have not researched this much yet, I wanted to share this video, ‘How to Prepare for the Next Great Depression/The Great Reset,’ which discusses inverse ETFs. Remember to always conduct your own research before making any investment decisions.
Diversify your banks by utilizing different types of banks such as small credit unions, regional banks, large banks, and online banks. Some banks could suffer problems during recessionary times making it harder to access your money. We’ve already seen several cases of this just since 2020. Having multiple banks (and multiple types of banks), could help minimize the problems you could face if your bank suffers any issues.
Remember: Credit unions tend to hold a large amount of auto loans, so if the auto industry is affected, then the credit unions will likely be affected as well. Likewise, regional banks tend to hold a large number of mortgages (especially commercial mortgages), so if the real estate and/or mortgage industries are affected then the regional banks will be affected also. This is a good reason to diversify into different types of banks.
*Be sure to log into your bank accounts frequently to ensure your balances are correct, and so you are aware of the amounts in each account.
Diversify your preps. Life is unpredictable, and we can’t foresee what challenges may come our way. It’s wise to be prepared for multiple scenarios. Stock up on a variety of shelf-stable items, but also have go-bags ready with essential items in case you need to leave quickly. Plan a contingency for where you will go and consider stocking some items there. Keep cash on hand, consider holding some precious metals, and evaluate if cryptocurrencies may be beneficial for you in certain situations.
Save Cash for the Crash!
Save cash (or as some call it, “dry powder”) on the side to scoop up assets that might go for cheap during these economic downturns. Not everyone will plan for the future, and some might lose houses, businesses, and/or other assets due to not being prepared. Prepare and plan now! During economic downtimes, many large corporations will try to scoop in and gobble up these assets. I feel it would be better for our communities if average citizens buy these assets instead of these large corporations that have zero ties to our communities.
Educate Yourself
On average, recessions happen every 6-8 years. Educating yourself on different assets during good or stable economic times is crucial for recognizing good opportunities during recessions. Money can be made during recessions by those who are prepared and educated. Here’s how you can position yourself to benefit.
Understand Different Assets
Identify Beneficiaries of Recessions and Inflation
Companies that produce or sell essential goods, and who often see a steady demand even during economic downturns. (Food, oil, gas, rent prices…?)
Stay Informed and Adaptable
By educating yourself and understanding which assets perform well during recessions, you can make strategic investments that not only protect your wealth but also potentially grow it. Remember, more millionaires are made during market crashes and recessions than at any other time. The key is preparation and education.
Go to Recommended Books for a list of books, videos, and movies that may help with your financial education.
Buy Assets!
During a recession, the name of the game is who can lose the least. Valuable assets during these times often hold (and some may even gain) value helping your net worth. Some of these assets could even be a stream of income. Some suggest looking into land, oil, energy, gold and silver (God’s money), and/or good cryptocurrencies. Do your research to decide if any of these interest you and if they will be an asset to your portfolio. Watch for sales on your favorite assets and scoop them up when they are cheaper.
Before purchasing any assets, be sure you have a solid emergency fund, a well-stocked pantry, and have all debts paid off (or at least all high-interest debts paid) before purchasing assets. Once you are in a position to purchase assets, then you can start buying dips in things such as land, energy, precious metals, and even good cryptocurrencies.
Note:
If you are looking to purchase assets at the same time you are trying to build your pantries/stock-ups, then it’s suggested to spend no more than 1/3 of your funds on assets and use the other 2/3 of your funds on stock-ups. This still ensures you are prioritizing your pantries.
Only buy fixed-rate debt (never variable or adjustable), and only buy investments you plan to hold for at least 5-7 years.
Go to Retirement and Investing for other investing tips.
Resist the desire to cash out
During a recession, it can be tempting to cash out your investments to avoid potential losses. However, this decision can often do more harm than good. Investment decisions based on fear can lead to poor outcomes. Recessions are part of the economic cycle, and markets tend to recover over time. By cashing out, you might lock in losses and miss out on the eventual rebound. It’s important to stay calm and stick to your long-term strategy, rather than reacting to short-term market movements.
Recessions can also present unique investment opportunities. By staying invested in assets you believe are still solid, you can take advantage of lower prices and potentially increase your returns when the market recovers. Recessions can be like a fire sale event creating a huge buying opportunity.
As Warren Buffett says, “Be fearful when others are greedy and be greedy when others are fearful.”
Bonus Tip
Do not lend money!
Per Dave Ramsey, this is the fastest way to ruin a relationship. Is this amount worth losing your friendship over? Lending money almost always leads to tensions in the relationship. If the borrower struggles to repay, or if it puts your financial stability at risk, it can lead to damaged relationships. Only lend what you can afford to lose. Dave suggests, that if someone asks to borrow $100, you can say, “I cannot lend you $100, but I can give you $10 (or whatever amount works for you), and you don’t have to pay me back.”
Building Self-Sufficiency and Community
Building Self-Sufficiency
Things can change fast, and everything from thunderstorms to ice storms to you name it, could shut down some of the creature comforts that we are used to. The Texas ice storm of 2021 was a good example of this as it led to shortages of water, electricity, and/or food for millions of people. Consider alternative methods for lighting, heating, cooking, growing your own food, and either having, finding, and/or purifying water. Solar-powered gadgets could be good investments as well. Do your research, learn, and prepare now to find ways to help you be more self-sufficient should you need to be in the future.
It might also be a good idea to think about any repair supplies you might need to help you be self-sufficient along with various tools and weapons that could be used for repairing, hunting, and/or protection. Learn how to use these tools and practice safety at all times.
Building Community
While I say the goal is to become as self-sufficient as you can, it is also just as important to build community. Becoming self-sufficient takes a lot of time and energy learning, gathering, and tending to the items that will help you become self-sufficient, and our society does not allow much time for that. We are all working, raising families, and just trying to survive as it is. Building a community is super important as you can rely on each other for different things taking some of the pressures off.
Example: I heard a lady talk about how she is skilled in sewing, but she has someone in her community who has a wheat grinder. Instead of focusing on purchasing and storing a wheat grinder also, she and her neighbor have come to an agreement to trade sewing for wheat grinding.
Learn a Skill
Find and learn a skill that others might need (auto mechanics, welding, plumbing, electrical engineering, cooking, canning, sewing, gardening, etc.). This might be one of your most valuable assets. They say those who have a good skill will be fed. If needed, you can use your skills in exchange for food and/or other needed items.
Build a Library
Build your library with physical copies of useful “How-To” books. This can include cooking, canning, gardening, farming, foraging, medicine/herbs, household and auto repairs, and any other topics you think could be useful if you are unable to get that information elsewhere.
In my opinion, the Bible should be at the top of this list of physical copies to have on hand as you never know when you or someone else might need it.
Health is Real Wealth
Your health is one of the largest assets you have. If you do not take care of yourself now, you could be out a lot of time and money later. This could also make it more difficult for you if a crisis happens as you might not be able to get the medications you need when you need them. Focus on your health! Prepare now to get healthy and stay healthy, so your health will not be a burden to you or your family later.
Stock Up!
“Just in time” has been the attitude a lot of consumers have lived by for quite some time. This means you only replace something when you are running low or are out. Looking back to all the things that have happened during this time, it might be a good idea for your family to have at least a small stock up on hand of the items you frequently use, not only because of the lockdowns or supply chain issues but also if you lose your job or cannot get your paycheck on time. Think of this as your third step to your emergency fund. Even FEMA, Red Cross, and other disaster relief groups suggest having enough food and water on hand to last at least 3 days, sometimes up to 2 weeks. This is because after a disaster, it can be unsafe and, in some cases, nearly impossible for people to leave their residence for a period of time. It can also be important as supplies to stores, electricity, and water may be disrupted after these disasters.
And, although these may not be the prettiest, below is a link for stock-up lists I put together and use for my family. Maybe they will work for you or at least give you ideas for creating your own. Let me know if there's anything I may have forgotten. Stock-up Lists
Step 1 – $1,000-$2,000 in cash, or cash to cover deductibles, or one month’s worth of expenses in cash (discussed in the Make a Plan section)
Step 2 – 3-6 months (or 18-36 months) fully-funded emergency fund (discussed in the Make a Plan & Savings section)
Step 3 – Emergency food/supply prep
Examples to consider for your emergency stock-ups or preps would be any food items you regularly use with a somewhat stable shelf life, toothpaste, deodorants, shampoos, any medications you might use, and/or cleaning products, etc.
Check out my Printables for a few stock-up lists to get you started. These can be edited to fit your family’s needs as well.
You never know what life will throw at you. If an emergency happens (another pandemic with lockdowns, supply chain breakdowns/shortages, you lose your job or can’t get paid due to hacks or other ransomware attacks, or even if you or someone in your family gets sick and you cannot get to the store), having at least a small stock up of the things you regularly use can help give you the time to process and plan during stressful times and hopefully carry you in those times of need.
Aim to start small with having at least two weeks to one month’s supply, and then slowly work up to what you feel comfortable with.
3 Foods Suggested to Focus on First when Stocking Up: by Goshen Prepping
Rice - Rice is cheap and easy to store.
Beans - Most beans give you all the essential amino acids required for a healthy diet except one, however, rice includes this missing essential amino acid (methionine). This is what makes a meal of rice and beans work so well together. The downfall of rice and beans is that they do take a lot of heat/energy to prepare.
Can goods - Can goods are cheaper, ready to eat, and can be stored almost indefinitely as long as they are stored properly and the integrity of the can is still good. This means there are no dents or rust and it looks to be well sealed. (Tip: Be careful with the cans with the easy pull tabs. These may not store as well for long periods as the seal can become compromised more easily. Be careful to not stack these cans, and be sure to check on your cans frequently to ensure they are still well-sealed and not bulging. If there is any question, please discard the can. It is not worth your family potentially getting sick with food that has gone bad. Also, acidic can goods do not store as well for long periods of time. For more information about this, check out USDA – How long can you keep canned goods?)
A few easy strategies to use to build your stock:
Buy one (for now) Get one (for later):
This means every time you need something, you buy the one to use now, and then buy one or two extras to save for later. Then when you are out of one again, go and buy one or two extra, and save the extras. Eventually, you will have several items saved up and set aside.
Half and Half:
This is when you are halfway out of something, you go ahead and buy another to have on hand, and then when you are totally out, you buy another and repeat. This is a little slower and sometimes easier way to build up inventory in your stock-ups.
The 5 Can Plan:
This is when you buy 5 extra cans or other shelf-stable items every time you go shopping. This can be done with any number that works better for you, but it is an easy way to work on stocking up. (per Appalachia’s Homestead with Patara)
Streamline your recipes and add ones into your rotation that will have mostly shelf-stable ingredients:
This can help ensure your stock-ups will get rotated limiting anything expiring on your shelves, and it can help ensure you will know how to use the ingredients if the time comes that you need to. Be sure to have your recipes printed or written down, and stored in an easy-to-access location.
Check out this Pantry Meal Kit video to learn how pantry meal kits can help save you time and money.
Check out this page, Pantry Meal Kits, for shelf-stable recipes along with printable recipe cards you can use when putting your kits together.
3 Levels of Food Storage:
A well-stocked pantry is like a safety net—providing financial stability and peace of mind during emergencies. However, it can feel overwhelming when trying to get started. That’s where dividing your pantry stock-ups into sections can come in handy, and help you optimize your stock-up investments and create a pantry that’s practical and resilient.
1. Working Pantry
This pantry is one almost everyone will have. It is typically housed in your kitchen as this is the food you use every day or plan to use soon.
Most have anywhere from a few days to 1 or more months’ worth of food stored in this pantry.
2. Extended Pantry
Acts as a Personal Warehouse
This pantry houses a stock of the common, everyday, shelf-stable items you typically use.
This can be anywhere from 2 weeks to 12 months’ worth of shelf-stable foods you can shop from to restock your working pantry before heading to the store.
Money-Saving Tool
Some items rotate when they go on sale. Stock up when your essentials are on sale, so you can, hopefully, wait for another sale to restock maximizing your savings.
Be an Extension to Your Emergency Fund
An extended pantry can serve as a buffer against unexpected expenses. Similar to an emergency fund, a well-stocked pantry lets you rely on stored food during tight financial situations, freeing up cash for urgent needs.
Step 1: have a cash emergency fund
Step 2: have a fully funded emergency reserve of at least 3 to 6 months
Step 3: have a stocked pantry of 2 weeks to 12 months’ worth of food and supplies
3. Long-Term Pantry
This is anything you will store long-term (longer than one or two years). Be sure to research how to store these items properly.
Suggestions:
Be sure you’re investing before focusing on long-term storage as your investments are what will help you reach financial independence.
Focus on having a 9-month to 1 year’s worth of water, food, medications, and supplies before looking into freeze-dried foods.
Links for long-term storage ideas and information:
USDA – How long can you keep canned goods?
FoodKeeper App - Food and Beverage storage information for the best freshness and quality
US Emergency Supply – Storage Life Of Dry Foods
Creative Storage Solutions:
Finding space for your stock-ups is sometimes a challenge. They say older homes often had larger pantries and smaller closets, but modern homes typically have smaller pantries and larger closets. Be sure to prioritize what is important. This calls for creativity. Consider using the tops of closets or totes under beds for storage. Some even raise beds a little to create more space for their stock-ups.
*Remember to avoid excessive heat and moisture, as these can affect the longevity of your items, and ensure your storage is kid, pet, and pest-proof.
**Reminders for Stocking Up**
IMPORTANT: While preparing and stocking up can help you avoid setbacks from unforeseen circumstances, DO NOT get hung up on stocking up as your investments are what will propel you to financial independence.
If a stocked pantry is important to you, start with a small stock of 2 weeks to 1 month’s worth, then get your investments going, and come back and expand your stocks later.
Check the expiration date and package integrity of the items you buy, especially on the ones you plan to store. You will want to make sure the items will last the length of time you need them to. It is never fun when something expires on your shelves wasting your hard-earned money.
Rotate your stocks just as a store would by placing newly bought items toward the back and bring forward items that will expire the soonest.
Write the expiration date or purchase date in Sharpie on the front or top of your items.
This can help save you time as you will easily be able to see the items you should use first.
Check out the videos below for more ideas:
Preparing versus Hoarding
Hoarding is the excessive and often compulsive collection of items, typically with an inability to discard them. Hoarders acquire items without practical reasons, and in fear will often stockpile as much as they can of supplies during shortages while others are in need as well. They will usually spend all their money on hoarding items leaving no money for savings, which can be detrimental to themselves, especially during an economic crisis.
Preparing, on the other hand, means getting ready beforehand. It involves acquiring a set amount of extra consumables or supplies with practical purposes, stored for future use or rotation. This acts like an insurance policy or emergency fund, helping you through disruptive periods such as illness, job loss, or economic crises.
Pre-paring is done when resources are sufficient, allowing for staggered acquisition without causing shortages.
Prepare. Do Not Hoard.
Here are a few other links that might be helpful when trying to prepare.
Stocking Up / Preparing Lists (Blog post about why, when, and how we use our stock-up lists.)
Pantry Meal Kits (Blog post about the benefits of pantry/shelf-stable meal kits.)
Pantry/Shelf-Stable Meal Kit Recipes
5 Can Plan (Easy stock-up methods.)
“Bug Out Bag”
This is also sometimes called a “go bag”, “bailout bag”, “survival bag”, or “72-hour bag”. This is a bag kept ready for quick evacuation if needed. This can be for any reason such as a natural disaster, fire, civil unrest, or any other type of emergency. (The 2023 train derailment in East Palestine, Ohio is a good example of how a bug-out bag could help.) By keeping essentials in a ready-to-go bag, you won’t be left scrambling and potentially forgetting necessary items when you need them the most.
While a backpack is commonly used, any type of bag or small suitcase will work. Most focus on packing essentials for 72 hours, which may provide the time needed to evacuate and regroup without the immediate stress of finding food and supplies. This approach can also prevent you from becoming an immediate burden on others if you plan to evacuate to another house. It will hopefully give you time to reach your destination and maybe even have time to figure out how you can contribute in exchange for their hospitality.
When planning your “bug out bag,” it’s a good idea to look at things with at least a year shelf life. This way you do not have to change items out of your bag constantly. You can update it once a year replacing items that are about to expire.
For a copy of our “Go Bag” items list, click Printable Go Bag Templates.
Items to Consider:
Food
food for three days for each person
These should be non-perishable foods that will store well. Don’t forget any needed utensils, paper cups or plates, napkins, and a can opener, if needed.
nfant formula and baby snacks
gum
Water
water, water filters, and/or purification tabs
It’s recommended to have at least one gallon of water per person per day for at least three days for drinking and sanitation. At a bare minimum, a person should have at least 16 ounces of drinking water per day to live. Be sure to include cups or containers if using filters or purification tabs.
Bleach can be used to treat water, but DO NOT use scented, color-safe, or bleach with added cleaners. Also note, bleach only has a shelf life of approximately six months, but proper storage can help it last a year before its effectiveness begins to drop. Here is the American Red Cross link for ensuring water is safe.
Cleaning/Hygiene
disinfected wipes or household chlorine bleach and a medicine dropper
Bleach can be used as a disinfectant when diluted to nine parts water to one part bleach.
regular hygiene products (soap, shampoo, toothbrush, toothpaste, deodorant, razor, lotion, sunscreen, hairbrush, hair ties, etc.)
moist towelette compressed tabs, hand sanitizer
flushable wipes and feminine supplies
diapers and wipes for infants
Clothes
change of clothes including a long-sleeved shirt, long pants, underwear, and sturdy shoes with plenty of socks
rain ponchos, jackets, hats, and gloves
sleeping bag or warm blanket
small sewing kit
First Aid/Medications
first aid kit (mask, gloves, tweezers, scissors, clippers, tourniquet, alcohol prep pads, triple antibiotic ointment, band-aids, etc.)
garbage bags, emergency thermal blankets, cooling cloth, hand warmers
any medications (prescription and non-prescription)
sunglasses and prescription glasses
Security
whistle to signal for help
battery-powered or hand crank radio
matches in a waterproof container
flashlights and extra batteries
paper and a pen, pencil, and/or a permanent marker
important documents (copies of insurance policies, identification, bank account information, important medical records, physician contacts, and local maps in a portable waterproof container)
cash including change
pocketknife
Other
books, games, puzzles, or other activities for children
keep a wrench or pliers handy to turn off utilities at your home
This is not an all-inclusive list but is intended to get you thinking about what you might need.
This video by Kristen from Six Sisters’ Stuff is what inspired me to create bug-out bags for my family. Check it out to see why she created bug-out bags, and what they include in theirs.
Emergency Preparedness for Your Pets
Our pets are important members of our household, so it makes sense to prepare an emergency plan for them as well.
Here are some things to think about for our pets:
Food and treats - for at least three days kept in an airtight, waterproof container.
Dry food can go stale and make your animals sick, so be sure to rotate this just like any other food.
Water - for at least three days specifically for your pets in addition to what you and your family might need.
First aid kit - (cotton bandage rolls, bandage tape, scissors, antibiotic ointment, latex gloves, isopropyl alcohol, saline solution, and flea and tick prevention)
Collar with ID tag - Your pet should wear a collar with its rabies tag and identification at all times, but include a backup collar and ID tag.
Harness and leash
Crate or other pet carrier - If you need to evacuate in an emergency, be sure you can easily take your pet with you provided that it’s practical to do so. In many cases, your ability to do so will be aided by having a sturdy, safe, comfortable crate or carrier ready for transporting.
Bedding - something you can put down for your pet to sleep on.
Sanitation - Include poop bags, pet litter and litter box (if appropriate), newspapers, paper towels, plastic trash bags, and sanitation cleaners/wipes/hand sanitizer to provide for your pet’s sanitation needs.
Picture of you and your pet together - This can help if you become separated from your pet for some reason.
Familiar items - familiar toys and blankets
Important documents (names and contact information of veterinarians and veterinary hospitals close and in nearby towns, your pet’s registration information, adoption papers, vaccination documents, and medical records kept in a waterproof bag or container)
Review Policies and Prepare Your Paperwork
Periodically review important documents.
Review Insurance Policies
Rapid inflation has hit almost everything we buy making the cost to build or repair anything a lot more expensive. Review your home and auto insurance policies at least every few years to ensure you will still have adequate coverage if needed. Without proper coverage, you may find yourself unable to rebuild or replace your home or vehicle in the event of an unexpected disaster.
Review Wills, POAs, and life insurance policies
Life can change very rapidly, so be sure to review your will, any power of attorney you may have set up or should set up, and your life insurance policies as you want to ensure your loved ones are taken care of and that you are not leaving anything up for grabs for the state.
Make a “What if?” folder
This is a folder that contains all your personal information for loved ones should something unforeseen happen to you. This may contain your personal information such as contacts, medical information, insurance information, household expenses, a list of your bills with due dates, a net worth statement along with instructions for accessing your accounts, and end-of-life arrangements. This might even include other important paperwork such as birth certificates, titles, passports, and maybe even a few pictures.
Secure paperwork
When it comes to this paperwork, a safe is a great place to store this information, however, remember that even though a safe might claim to be fireproof, the temperatures inside a safe during a fire could get hot enough or stay hot long enough to make paper documents unreadable. Place important paperwork inside a fire-resistant case/bag inside a bigger fireproof safe for extra protection.
Plan a Security Protocol
This is not a fun one to talk about, but it could save you a lot of headaches and heartache later.
Decide a meeting place for you and your family if you were separated during an emergency or crisis. If you were unable to reach your loved ones by phone, would they know where to find you, or would you know where to find them? Having a meeting place (or a couple of meeting places) could help them find you more quickly.
Designate an out-of-town contact everyone can report to in the event of an emergency. An out-of-town contact may not be impacted by the disaster or emergency you are facing in your local area. This may be a better way to keep communications. Since cell signals may be spotty during a disaster (especially in the disaster zone), you can use your precious signal time to inform your out-of-town contact of your condition, location, and plan instead of wasting signal time trying to contact others who may also have spotty service. Then when others have a signal, they can contact this same out-of-town contact to understand your location and plan to find you. This may help to get everyone connected again.
Have a family code word your loved ones could use in texts or phone calls.
This may be helpful for teenagers to use which can either mean pick them up right away or call the police.
This may also help younger children know if a person is safe to go with, such as if someone tried to pick them up from school that was not authorized.
This may also help other family members know if it is truly you on the phone. With the advancements in artificial intelligence, the ability to mimic someone’s voice is scary. Many have said they’ve received phone calls from what sounded like their child, grandchild, parent, or sibling asking for money, but these were scammers using artificial intelligence to mimic the voice of the person they knew.
Plan now so you and your family are prepared.