My Money Management System

            Hello, today I decided to share my insight on saving money. I based all my techniques on one popular question, “how much money is enough?”, and my money management plan works on one simple principle. Due to inflation, it is not a good idea to have large amounts of cash hoarded away. My money plan covers emergencies, which include the risk of job loss, and equipment failure. I consider my automobile, travel trailer, refrigerator, etc. as equipment. I consider job loss to be a major concern during this recession. The yuppie financial adviser Dave Ramsey recommends a savings of around $1,000 for personal emergency. I consider this amount to be adequate, however if your situation can’t seem to allow you to save a whole grand, I would consider $500 bare minimum. This “rainy day fund” should be available in cash format in a moment’s notice. It should consist of different face values, and I prefer seven Benjamin’s, ten Jackson’s, five Hamilton’s, five Lincoln’s, and twenty-five Washington’s ($1000 in total). I recommend finding a safe hiding place (NOT A BANK) for your emergency “loot”. If you think it is safe (personally I don’t) to tell one trusted person about your hiding spot, go for it.   

            The next step is to consider your place of employment. Personally, I work fast food and I feel my job will always be there (at least until the robot food service workers rise up). For those of you that work factory jobs, I don’t understand how you sleep at night. The risk of being shipped overseas has never been more of a reality. I currently live on around $300 a month, however when I move into my trailer, the cost will rise to about $500-$600. You should have a minimum of six months saved and I refer to this savings as “Job Security fund”. I don’t trust banks when it comes to keeping important money safe, so finding a hiding place for your “Job Security fund” is vital. Let us imagine your factory was shipped to a shit village in Indonesia, meanwhile your own city is having grid electricity problems. You didn’t listen to your buddy Homestead Hermit, and you put your survival money in the bank. If the A.T.M. at the local Pilot Travel Center doesn’t work, what can you do? Not a damn thing!

            The “bread and beans” of my survival money plan relies on $5,000. Your plan may require more or less cash, and in the end it is all about what you feel comfortable with. With my personal plan, $1,000 is for emergency use and $4,000 covers my expenses for around eight months. It really is that simple. With U.S. currency no longer based on gold or precious metal reserves, the risk of deflation is obvious. Imagine waking up, turning on CNN or Fox News, only to find out the bottom has dropped out of U.S. currency. The suicide rate would jump a mere %75, and businesses would shut their doors instantly. Riots would begin, and even rural areas wouldn't be safe. Don’t depend on money alone, a good stockpile of food and water will outlast any stockpile of green paper. I will save my food/water stockpile info for another post. Stay safe, and keep your eyes open….

P.S. - WOW!!! The travel.trailer.hermit blog just hit 1,065 views. I want to thank all you guys for the loyal support. I almost forget to remind you guys that The Hermit won't be posting tomorrow (Saturday 1/5/13) or the day after (Sunday 1/6/12). As always, I reserve my wonderful weekend for sleeping in late, reading, etc... However, i will be back online Monday with a wonderful post about God knows what. See you then!

Until next time, Homestead Hermit--- signing off….