Monday, March 18, 2013

Time to Build Cash Reserves

For those that are able to increase their cash reserves at home, please consider Cyprus as a canary in the coal mine. The government has decided to steal 6.75% - 10% of the people's money as a "bail-in" tax.

To remain below the radar, I highly recommend a slow and steady approach to save cash from your accounts. Do not take on any extra tax penalties or debt to increase your cash on hand.

If it isn't in your possession, then you really don't own it.

I recommend at least 2 months of cash on hand in various bill sizes to handle most emergency situations. In a SHTF scenario, cash can and will provide you an advantage over other people that are seeking the same goods.

Keep Right On Prepping - K




15 comments:

  1. Cyprus is just a test country to see what can be tolerated by the people. This "tax" could become very real for the USA as things continue to decline here and abroad. A good prepper pays attention and learns from the news about trends that can negatively effect their family.

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  2. In roughly two years, all tax revenues will be going to pay for entitlements. I look for a Cyprus event to happen here within that period or just before the two years is up.

    http://market-ticker.org/akcs-www?post=218859

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    1. Interesting post on market ticker. I do have some reservations about projections though, as Samuel Clemens said " There are lies, damned lies, and statistics."

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    2. True, but they are usually in error in being half-full rather than half-empty. So the logical conclusion is to expect this to happen sooner rather than later.

      As far as the author goes, he has a long track record of be very accurate with his predictions.

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    3. I haven't heard of the author, but I tend to avoid the perpetual doom and gloom economic sites for mental reasons. I like being prepared, but not depressed.

      I do honestly believe that there will be a "bank holiday" in the US before the fat lady sings.

      "If you’ve no debts and have $10 in your pocket you have more wealth than 25% of Americans."

      source: http://www.forbes.com/sites/timworstall/2011/12/14/six-waltons-have-more-wealth-than-the-bottom-30-of-americans/

      We are frugal and ahead of most Americans in our economic plan.

      Delete
  3. Cash is always good to have. I wonder in the case of a collapse if there will even be anything to use it on though but it certainly cannot hurt.

    In the case of a bank holiday it would be "priceless"

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    1. It will have some use, especially early collapse while there is still full faith and credit behind the currency. In a "black swan" event, it may last only a few hours, and only on people still in denial.

      In a longer slow collapse, or bank holiday, it may last anywhere from several days to weeks.

      It's really all theory though, a cash bride to open a closed store for your personal shopping might prove very effective. Of course, I'm thinking an EMP blast scenario to go by the gas station to buy groceries before the store owner realizes that the goods are worth a lot more than double their normal price.

      "Could you open the store for a hundred?" I'm sure the hourly employee would say yes, quite quickly...especially when you mention a tip after he helps you shop.

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  4. I don't know the depths of the bank holiday in Cyprus but how many people here keep enough cash to fill up their car twice in a week? To buy groceries for a week?

    The Bank holiday was declared on Saturday and won't be over until Thursday. I'll be debit transactions and even credit card functions are blocked.

    I think you are wrong; it is past time to build a cash reserve. Still time to add it though. Cash on hand, with precious metals that can be exchanged if/when the cash runs out.

    Right now we think the bank holiday will only be limited to Cyprus but Greece is still in trouble as is Italy, Spain and a couple of others.

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    1. "I think you are wrong; it is past time to build a cash reserve." I stand corrected.

      As for my family, we have been one the Dave Ramsey plan for over 3 years, so it's all cash envelopes for us. We need more cash to weather a bank holiday though.

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  5. Good post but.....aren't you on vacation?

    Unless something drastic happens in a little over a year we will be able to call Dave and yell...We're debt free!

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    Replies
    1. Yes, we are on vacation. An early congratulations on being debt free. It is a wonderful feeling.

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  6. A cash reserve is so important There are so many who don't have even a few dollars at home. I’ve nominated you for the Liebster Award you can check it out at http://frugallivingonthewatkinsranch.blogspot.com/2013/03/i-was-nominated-for-liebster-award.html
    Connie

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    Replies
    1. Wow, thanks so much...I consider that a high honor.

      Delete
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    ReplyDelete