How do you "care" about your money?

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Stahlmann
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Joined: Fri Sep 02, 2016 6:05 pm

How do you "care" about your money?

Post by Stahlmann »

There was the topic about where the money resides/is altogether.

How about the way you secure "it".

I mean in every developed country there is the rule which says that you can receive your money back from your savings account up to some value (but what if one of major baks collapse :lol: ).

But then what? [with bigger amounts of money]

My question stems from that https://forum.earlyretirementextreme.co ... 67#p145867

Especially, if we tend go into more hermit mode and try to not leave any traces of our behaviour.

TL;DR To what extent do you trust your bank/brokerage account [or how do these intitutions guarantee trust]? It sounds "nutty", but the question is geared towards more preppy folks ("deeper" ERE).

One more time (in different words). There is war. How would your "monetary capital" ("numbers" on your savings account; ownership of stocks) be useful if you would not be able to withdraw it? Or somebody said that "Now you own 0,5X" (X was amount before war).

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Seppia
Posts: 2016
Joined: Tue Aug 30, 2016 9:34 am
Location: South Florida

Re: How do you "care" about your money?

Post by Seppia »

I think the best currency of all in case of a war/major SHTF scenario would be skills.
Knowing how to garden, hunt, find water, basic emergency response, repairing stuff, etc.
the opportunity cost of keeping all or a significant part of your possessions in cash/gold/whatever is huge, and you'd be planning for an unlikely event.
A bit of phisical gold sure doesn't hurt, same as a small house with some land in a remote but not too remote location.
But if the nuclear holocaust strikes, I don't think I'd care if I couldn't access my Royal Dutch stock
Last edited by Seppia on Sun Jul 16, 2017 8:06 am, edited 1 time in total.

Farm_or
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Re: How do you "care" about your money?

Post by Farm_or »

Isn't there a popular study, or is it urban myth? About the rich man who voluntarily removes all of his monetary belongings, starts again from scratch and in a relatively short time is right back where he started?

But to the original topic: caring for your money, start with keeping close tabs. Continuous learning about the economy and keeping your ear to the ground to anticipate change and act- preferably proactive.

Changes are going to occur. How you react to change is ultimately what determines how you can care for your money. Will you have the knowledge and ability to react advantageously, or will you do often like so many others and follow a crowd?

IlliniDave
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Re: How do you "care" about your money?

Post by IlliniDave »

I have a high degree of trust in them. In the US we have the FDIC and SIPC that protect assets at banks and brokerages/investment companies (up to limits), respectively. If you're woried about individual bad actor institutions, spreading assets across institutions to stay within the protection limits at each one is the obvious hedge. When it comes to prepper scenarios (some form of financial apocalypse) I'll sound like a broken record: land and guns. Even if you have gold by the pound buried in your back yard, you won't be able to "buy" your living. You'll have to go out and make it for yourself.

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Sclass
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Location: Orange County, CA

Re: How do you "care" about your money?

Post by Sclass »

Like this! :lol:

Image

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