Every ounce of critical financial planning can go to waste if you don’t have an emergency fund to back it up.  Emergency funds are a lifesaver when unforeseen expenses crop up.

There are emergencies that need immediate attention such as a daily-use home appliance breaking down or car repairs demanding early intervention. Because these emergencies usually require your immediate attention, attaching a debit card or a check-writing facility to your short-term emergency fund can be of use. You will have immediate access to your funds putting you in a position to use them whenever the need strikes.

On the other hand, a long-term emergency fund saving can get you out of the woods in case of dire emergencies, not under your control such as a natural disaster or job loss. Long-term emergency funds can be stored in investments which may take several days to liquidate.  The short-term fund should hold you over until you’ve accessed these funds.

When Emergency Funds Really Save the Day

Realistically speaking, an emergency fund is not a “backup fund” you can use to buy anything you want. Learn to identify what a real emergency is and how it impacts your lifestyle in the long run. Examples might include:

• A family emergency requires your attention and you need to make travel arrangements right away.
• A major everyday appliance such as the dishwasher or refrigerator breaks down and you need it repaired/replaced.
• You currently don’t have health insurance and suffer from a critical illness or injury which requires immediate medical care.
• A car issue you can’t figure out which demands the attention of a mechanic.
• The basement gets flooded due to a water heater problem.

Pay Off Your Debt First

Before planning an emergency fund, make sure all your debts are paid off. Large amounts of debt can be a real thorn in your side, particularly if you are paying high interest on them. Settle your debts and, under all circumstances, avoid the urge to accumulate more debt. Failure to pay your debt means you will continue to accumulate more debt (interest etc.) and may end up in hot water if your lender goes the legal way.

First, you have to make sure you don’t owe any back taxes from the IRS. Tax debt should be settled first to avoid unnecessary seizure of any properties you owe. Consulting a tax professional can have many advantages. They can help you through tax law, taking into account your financial situation, so that you pay back the smallest amount that is legally owed.

If you owe unsecured debt such as credit card bills, getting into a debt settlement program is one way you can free up more money to deal with monthly expenses and help settle debts within a reasonable time frame. Avoid bankruptcy as much as possible by exploring your debt relief options and invest in a debt settlement program to find closure fast. Remember, bankruptcy can have a lasting mark on your credit report.

When Should You Save?

It is generally a good practice to pay off all your debts before you start focusing on emergency fund savings. However, it’s permissible to start saving while you have some debt if you’re making all your mortgage payments on time. Make sure all your monthly credit card payments are being taken care of. Finally, you shouldn’t have any loans that are high interest and really low in terms of savings.

High-interest charges on ‘expensive debts’ make it more challenging to finance your emergency fund, so you need to clear those first.

Why Do I Need an Emergency Fund?

You need an emergency fund to fall back on in case a financial emergency arises. Knowing you have cash in hand will keep you trouble free. In addition to this, there are several other reasons why you need an emergency fund:

• Life is unpredictable! You may lose your job or start making less money all of a sudden. In such times your emergency fund can be of much use. It will help cover your day to day expenses while you look for another job or ways improve your finances.
• Health emergencies can arrive anytime. Sadly, your health insurance may not necessarily cover every hospital visit or medication expense. Have an emergency fund plan and you’ll never have to play the choosing game between your monthly rent and your well-being.
• No matter how much we care, accidents can happen and may result in huge problems. Anything from your car breaking down to your house catching fire can be troublesome. In such conditions, your emergency fund can help bring you out of hot water.

A Backup Piggy Bank for Obligations, Not Entertainment or Desire

The whole idea behind emergency savings is to have a backup source for meeting life’s obligations, and not desires or what you consider ‘leisure’. Focus on the bare necessities only:

• Mortgage payments when finances are tight
• Automobile expenses outside of fuel and normal maintenance
• Insurance
• Utilities
• Food
• Healthcare etc.

There are taxes to be paid off and monthly or quarterly home maintenance. It’s always good to save a little extra which acts as a cushion should you find yourself unemployed.

Building Your Emergency Fund

When building your emergency fund, take the following into consideration:

How Big?

Your current financial status and insurance coverage decide whether you should have a big or small fund. Generally, it’s a good idea to have sufficient emergency savings to take care of 3-6 months’ worth living expenses. If you’re out of a job, it gives you enough time to find work while supplementing with unemployment benefits.

You need to do math and see how much you can afford to save every month after paying all your necessary expenses. Try to reduce unnecessary expenses so you can save even more.

Where Do I Keep it?

You should keep your savings in an account that allows you to withdraw funds whenever you need it. A checking account is an ideal account since it has little to no restrictions on withdrawals. However, the downside is that you have to do away with interest in most cases.

On the other hand, you may also choose a savings accounts. Your money will increase slightly each month due to interest, but you may have to deal with certain restrictions on withdrawals.

Ideally, you should keep your money in two places. A larger amount in a savings account – untouched until you really need it – and a smaller amount in a place more readily accessible.

Steps to Take in Advance

• You need to have a monthly savings goal. Get in the habit of saving on a regular basis. Even a small percentage adds up. It can be a percentage of your net income or a fixed amount, such as $500 per month. You should let this amount decide your other expenditures as a rule.
• If there’s any money left in your checking account before the start of the next month, move some or all of it to your emergency account.
• When filing taxes, you might want to have your refund directly transferred to your emergency savings, as it could be in the thousands.
• If you’re not saving enough, consider cutting back monthly costs through carpooling, eating out less frequently, not throwing away leftovers or having coffee at expensive places.
• Get a second job or freelance doing what you love to save extra for your emergency cash savings. Sell unwanted items in your house.
• Every few months, it’s a good idea to check how much you’ve saved. This will help you see if you’re reaching your goals or if you need changes in your plan. Plus, knowing how much money you have will also allow you to take better decisions in case of an emergency.

Final Thoughts

Everyone needs to have an emergency fund for when things get rough. When you fail to have a cash reserve for these unexpected situations, you’ll be left with little choice but to reach for the credit card, which is something you want to avoid all together.

Say no to debt, find relief from it fast and always learn to distinguish between necessities and luxuries when saving up those extra dollars for emergencies.

Sources:

• http://www.finweb.com/financial-planning/the-importance-of-an-emergency-savings-fund.html#axzz4BG0MCvYt
• http://www.curadebt.com/debt-consolidation-options/
• http://www.moneysavingexpert.com/savings/pay-off-debts
• https://www.nerdwallet.com/blog/finance/life-build-emergency-fund/

Statistics show that about 33% of all Americans age 25 and older have college degrees and those numbers are rising over time.  Unfortunately, many Americans use loans to finance this higher education.  Nothing welcomes your adulthood like getting the first student loan bill in the mail.  These bills can control your life if you’re careful.  And, while we don’t recommend taking loans in the first place, following these six steps will help you steer clear of trouble and manage your debt in a responsible manner:

1. Don’t Ignore Your Student Loan

Most of us would agree that student loans are no fun to pay back.  Completely ignoring them, however, will lead to serious consequences in both your credit rating and financial future. Make sure you start paying them off right after finishing college.  

Editor’s Note: College loans typically give you a six month grace period from graduation before you have to start paying them off.

2. Set Up A Budget

Your lifestyle completely changes after college.  You’ll need to start paying attention more to your financial surroundings and managing the flow of money through your accounts.  Part of managing your income and expenses will involve tackling your student loans.

Monitor all your incomes (paychecks mostly) and expenses (rent, food, utilities, student loan payments, etc.) and create a budget off this information.  It will help you determine your repayment strategy and show you where you can and cannot spend money.

There are apps and programs that can help. Third Party phone applications like You Need A Budget (YNAB), Mvelopes, and Mint, as well as software programs like Zilchworks and Quicken, can help you get on track.

3. Set An Affordable Monthly Payment

There is no one solution for everyone. Once you’ve set up your budget you’ll be able to get a clearer picture of what you’re capable of committing to pay each month – no less than the minimum of course so you don’t default.  If you can’t handle the minimum for whatever reason, it is best to talk to the loan manager as they are usually willing to work with you.  It is much better to set up smaller monthly payments over a longer time than default on your loan.

You will get rid of your loan sooner (and pay less interest) if you pay a higher amount than the monthly minimum.  This approach should be a goal, however.  Minimum payments should be considered mandatory for the reasons we’ve listed above.  Side note – if you have a lot of debt, consider looking into the debt snowball payment method as a way of getting out of debt faster.  It won’t be easier, but it works..

The recently created Pay As You Earn Repayment Plan (PAYE) also aims to make paying off student loans more manageable.  

Editor’s Note: I have no experience with this plan so please check with consultants to see if your loan and circumstances qualify you for the program.

4. Research Forgiveness Options

There are some lawful ways to have your student loans dismissed.  There are also certain criteria you must meet to qualify for a student loan forgiveness program. Research available student loan forgiveness programs at the state and federal levels to see if there is a student loan forgiveness program that suits your situation.  In the meantime, make sure you’re keeping up with your minimum payments.

5. Set Up Automatic Payment Options

One of the best solutions for student loan repayment is to opt for an automatic payment option.  These programs will automatically deduct a preset amount each month from your account to pay off the loan.  You will not have to worry about writing a check each month as it will be deducted automatically on a certain date.

Typically, you have the option of picking which day of the month you pay the loan.  This option allows you to do helpful things like schedule your payment for the day after your paycheck is credited to your account.

This approach takes the responsibility of remembering to write a check and mail it (or even just log-in and process payment) each month out of your hands and keeps your credit and status in good standing.

6. Make Extra Payments Whenever Possible

We touched on this item in Step 2, but the best tip for managing your student loans (after not taking them) is to pay them off as early as possible.  You can do this by making extra payments whenever you have a few dollars in your pocket.

When making extra payments, make sure it is explicitly clear that the extra money in your payment is to be put against the principle of the loan and not against the next future payment.  Also, if you have multiple student loans, always apply any extra payments to the loan with the highest interest level first.  This approach will reduce the amount of interest you pay and reduce the total cost of your loan over time.

Conclusion

Student loans are beastly things that are best avoided.  That being said, if you have them, it’s best to service them as much as possible.  We recommend following these six steps and also consulting with the most experienced, informed and active student debt consultants you can find in order to resolve your debt the most beneficial way possible to your current situation. Student loans can be trying but they are survivable.

It’s difficult being an urban homesteader. In order to make it, you need to be independent.  Independence can mean many things, but a lot of people think of owning a good amount of land.  So what is a poor city inhabitant who longs for the country life supposed to do? Become debt free!

Going Debt Free

Homesteading and independence go hand-in-hand with being debt free. The tips below will allow you to homestead anywhere.  They will also show you how to cut expenses and save cash.  The culmination of this effort can result in a debt free lifestyle.  The same kind of lifestyle that might see you own that real estate in the country.

Container Gardening

Think you need a patch of earth to grow vegetables? Reconsider. You can grow tomatoes, lettuce, squash and potatoes in simple containers.  Items such as barrels, pots or hay bundles will do.

Even better, container gardening is perfect for those new to planting. You have fewer plants to manage, less weeding and less immediate cost and time.  You can grow a significant number of crops in minimal space, even if all you have is a small balcony.  All you need is a little planning.

Zucchini and strawberries can grow in hanging wicker bins.  Similarly, tomatoes can be grown in little tubs.

Gardening and growing vegetables doesn’t require large machinery or planting equipment. All you have to do is make use of the things available to you.

Make and Use a Solar Oven

One of your biggest expense can be your utilities.  Have you thought about how you can continue on the debt free path and cook for free? A Solar Oven is simple to make and can completely reduce your utility costs.

Keep Some Chickens

A friend of mine hatched chicks from prepared eggs utilizing an electric skillet set on low.  They used some water to keep the air inside the skillet soggy and a towel to pad the eggs. Five of the eggs hatched and three of the birds made it to adulthood. She now keeps these three hens in her lawn. When they are mature enough, these animals will supply her with eggs once a day.

The cost of feed will most likely be offset by the amount of money you spend on eggs.  You can take the savings and put it towards your debt free goals.

Raising chickens isn’t for everyone.  Make sure you check the rules and regulations of your city.  Also, make sure you are on board with raising livestock.  It’s a full-time commitment.

Live Simply

A smart thought for anybody, yet key for a trying homesteader. Figure out how to curtail costs now, keeping in mind you are busy.  Dispose of the extra costs in your life. A homesteading lifestyle requires that you figure out how to deal with what you have as opposed to rushing to the store for something new.

Do you need those three TV sets? What about that vast closet of clothes? Learn to get by with what you have now.  Heading to the store when you’ve ‘made it’ might not be as easy as you think.

Conclusion

Living simply also means curtailing any extra costs that you might be incurring.  Doing things like paying off any loans that you have taken as soon as possible can lead to a debt free lifestyle. Do not to buy items on credit. The simple life may be what’s needed to get you to your debt free goals.

Riots, EMP threats, NASA’s megadrought, clashes between religious fanatics, the U.S. debt increasing and the coming elections – all of these situations point to the same thing: the world may go down south at any time. I’m not saying they will – I hope they won’t – but are we really crazy for prepping for them?

Our minds are running in overdrive about prepping while the Government’s telling us everything is fine and we don’t need to worry. Sometimes they call us crazy… even though preppers are some of the nicest and friendliest people you’ll ever meet.

I wrote this piece to give you tips on how to prepare without appearing crazy or freaked out about what’s to come. You’ll find my prepping suggestions reasonable. Acting on them will make you feel safer and I can almost guarantee you’ll sleep sounder knowing you’re ready for what might come.

Seven Reasonable Prepping Tips

#1. Get Into Shape

Bad situations bring out the worst in people.  When push comes to shove, people will start thinking they have more of a right to something than you and you may need to fight one or more thugs one on one. You may need to jump, crawl, climb and run to save your life. You may need to pull or carry an injured loved one to safety. All of these require strength, flexibility, speed and stamina.

Fortunately, it’s easy to improve all of them. The easiest thing you can do is just walk more! I, for one, love walking and I always find excuses to leave my car in the garage and run errands on foot. Jogging, hiking and going to the gym will all improve your fitness levels and work your muscles. I suggest you focus on tactical fitness exercises such as sit-ups, push-ups, pull-ups, jumping jacks and so on.  Remember, prepping is just as much about gaining skills as it is gathering gear.

#2. Get Out Of Debt

I don’t know if an economic collapse will come before the next major natural disaster or if it’s going to be the other way around. What I do know is that, in the case of either one, you don’t want to be owing money to banks or to anyone else.

We’ve always said that you should start of prepping by paying off your debts right now even if that means more effort or not eating out every day. You know what they say, the more you sweat, the less you bleed…

#3. Move Out Of The City

What usually happens during riots is that the downtown area of a city turns into a battlefield. That’s the last place you want to live because you can’t get in, you can’t get out meaning you might get stuck inside for days, even weeks. Even worse, you might get yourself injured trying to get home.

Try to find cheaper housing in the suburbs. You’ll have to be careful about the location, though, to avoid high-crime neighborhoods. You want to be safe before and after a riot, not just during, when those low-income rioters who also live in the suburbs decide to take justice into their own hands. You’ll also want a quick way out of the city if need be.

Fortunately, you needn’t go further than this website to learn about life in the suburbs.

#4. Start Stockpiling

No, you don’t have to fill an entire room with toilet paper.  You should, however, have a pantry full of foods with a long shelf-life such as canned veggies, jams, peanut butter and honey. All you need to do is buy a little more food than usual with each time you go to the supermarket.  Make sure you’re paying attention to the nutritional content of your stored food as well.  A healthy you is a stronger you.

Buy the things you like to eat so you can easily incorporate them into your diet. Food rotation is important because you don’t want to end up with a spoiled pantry. Of course, you can get other things in bulk such as the aforementioned toilet paper, floss, soap and other hygiene products. You should never run out of any of them – catastrophe or not.

#5. Find New Hobbies and Passions

Hiking, camping, fishing, woodworking, gardening, crafts – these can all make you better prepared without anyone suspecting the real reason why you’re doing them. If you thought about finding a new hobby, maybe now’s the time.

Who says you have to start a hobby on your own? You can do many of these things with your kids (and bond with them) or with your spouse (and possibly bring back the romance into your marriage). Hobbies are great bonding opportunities. Who knows, maybe one of them will turn into a passion.

#6. Prepping Your Car

Engine oil, transmission fluid, a toolbox, a spare tire, a shovel, these are things every driver should have in an emergency. To go the extra mile, why not add water and even a few snacks in your trunk? Not just for SHTF events but also in case you get stuck in traffic for longer periods of time. Add an AM/FM radio and a few blankets, too. If you’re stuck in heavy snow for hours, you don’t want to use fuel and your car’s battery to stay warm and hear the latest news.

Last but not least, make sure you have a good first aid kit. Not the basic one that came with the car, of course. You can make your own from scratch to make sure you have everything you need.  Keep an eye open for sales on first aid equipment and you should be able to do this step on the cheap.  For example, I bought some Ibuprofen last night and they had a “buy one get one free” promotion. Now, I can keep the extra pack with the other in my bug out bag or I can add it to my car’s survival kit.

#7. Start a Medicine Cabinet

Keeping in mind that I’m not a doctor and that you should only use my advice for information purposes only, I want you to build on the previous idea of assembling a custom first aid kit. You can take it even further by buying things such as:

• Bandages (triangular, 2×2, 4×4, H bandages etc.)
• Nitrile Gloves
• Burn and Trauma Dressings
• Sam Splint
• Instant Cold Packs
• Dental Kits (dental care is going to be tough in a post-collapse world)
• …and more.

Note: You shouldn’t store your medicine in your bathroom. Keep them in a dark, cool place because the heat and moisture from your shower will decrease their shelf life.

Final Word

Truth be told, I could write another five articles with all the basic prepping actions you could take and not look crazy. This one should give you a great head start in tackling all sorts of scenarios, including a natural disaster, riots or an economic collapse.

Whether you’re a suburban homesteader, ranch owner or a city dweller, being a prepper is about possessing a particular mindset that governs each of your decisions. It means utilizing each resource to the max, never discarding a resource that can provide some value someday, and staying in the moment while also preparing for the future.  A prepper feels no shame in using man made tools or forged goods to accomplish a certain task. They also tend to refrain from luxury or the unnecessary. There is usually is no room for a big screen television, fancy automobile, or anything beyond what is necessary to live. Those that can live happily without luxury items will have the easiest time transitioning to a TEOTWAWKI. Here is how you start putting that idea into practice.

Firesale!

If you don’t need it, get rid of it. Sell everything you have that holds any financial value and isn’t necessary for you to carry out your life. Why should you do this? One, you can use it to pay down any outstanding debts you may have (this will be touched on later), and second so that you can practice living on only the items that you need to live – an absolute must for when SHTF.

Craigslist and EBay are the tools to meet this end. You’ll find certain items that won’t sell on Craigslist will be picked up in only a few hours on EBay, and others have needs for items you don’t. This money should be socked away for later emergencies (medical or for stocking up on supplies). Or, if you have outstanding debt, put this money towards paying those debts off.

Debt – The Iron Shackles of Our Time

Why is debt such a bad thing and how is it relevant to prepping?

Because it is modern slavery.

People love owning your debt.  They want you to owe them.  They hunger for that interest payment accruing on your outstanding accounts. This interest is going straight from your bank account and into their pockets. Whether that interest you pay on a mortgage, car payment, credit card, or student loan, money going towards interest will stack up quick. Think of interest as money being tossed straight out the window. This is part of being in debt, and it is holding you back from any goals you may, financial or otherwise.

Whether you have to sell everything you own to get out of this debt, consolidate smaller debts into one lump sum, or declare bankruptcy and start anew, take any means necessary to get out of debt and break the shackles holding you back.

Now What?

So I’m free of debt, but also free of my big screen television, sound system, video streaming accounts, motorcycle, and anything “fun” I once previously owned. This bites, so where do I go next?

If you are committed to being a prepper, you need to rethink your entire lifestyle; new mindset, new hobbies, new values, new you.

• Mindset – This new mindset will be about living life the way you expect to when SHTF. This means without excess and enjoying the little things in life. Material goods are useless fragments of clutter and hold no value beyond the initial euphoria of owning something new.
• Hobbies – Lessen your dependence on electronics. Spend time with friends and family, play cards or board games, and spend evenings having meaningful conversations with others. Another popular prepper hobby is canning food, it can be a surprisingly enjoyable way to spend time and you’re able so prepare food supplies to be stored for later dates.
• Values – When SHTF, protecting your family and yourself will be the number one objective on a day to day basis. Commitment to the family should be instilled within your spouse and children. Spend time with each other do things together. Also teach them to save, use only what they need, and to think carefully before making any decision.

Prepping is about being ready for any event that could happen in the future, but to do that you must take action now. Reexamining your current lifestyle, removing the shackles of debt, and completely changing your life may all seem like unclimbable mountains now, but chipping away and working towards this lifestyle is what prepping is about.

When SHTF, will you be able to hit the ground running?  Does The lifestyle you’ll need to lead then differ much from the lifestyle you’re living now?

Ask yourself – Are you truly prepared?

I want to let you in on a dirty little secret about prepping: it ain’t cheap!

Once you get through your “Oh, crap!” moment, you’re going to do the same thing I did. You’ll realize that there’s a whole lot of action you need to take and a fair amount of things you need to acquire. A lot of these actions and acquisitions require money – money you might not have right now. So, what are you going to do to get started?

Go into debt?

Buy it on credit cards?

WRONG!

You’re going to do the first thing I did – sit down and make a plan to get out of debt. If you do nothing else described in this series, you’ll benefit immensely just by getting out of debt and creating financial independence for your family. Not being handcuffed by the credit card companies and banks will make you breath easier and sleep sounder.

Why My Finances?

Your first thought might be “why should I get my checkbook in shape before I stock up on beans, bullets or band-aids?” The answer is simple: without a solid financial backing, you can’t buy anything. Putting yourself into debt just to ‘be prepared’ is detrimental to your cause. You can have all the food store, medical supplies and firearms you can handle, but you’ll be up a creek without a paddle if spend all your money on preps and can’t afford to pay your mortgage or rent.

Where To Start

The first thing I recommend doing to start getting your finances in order is nothing.

Sound counter-intuitive? It is.

You’re not going to change your spending habits, you’re not going to change your income, you’re not going to change your monthly bills. You’re simply going to track your incomes and expenses for the next three months. Tracking this information lets you find out where your money is coming from and where it’s going.

How To Track Your Finances

There are a ton of different ways to track your money.

Some people like the old school method of pencil and paper. And that process works just fine. Write down dates and transactions – incomes and outcomes. At the end of the month, add them up.

Other people, myself included, prefer a slightly more technologically advanced approach. There are many software applications (both freeware and paid) that allow you to track your expenses. We have been using the freeware software Microsoft Money Plus. Yes, it’s Microsoft, but it does a great job of providing a clean interface that allow us to easily track my money. In addition, it allows us to run monthly reports. Plus it’s free – that’s a bonus for this endeavor! You can find it, along with a handful of other free finance tracking software suites, on this site.

Batten Down the Hatches

Now you need to take an honest look at the results of your financial tracking.I’m going to warn you right now – this next step isn’t going to be comfortable.

We spent three months tracking my financial transactions – every paycheck, Dunkin Donut stop and fill up at the gas station. After three months, we was able to generate three monthly reports and get a pretty good snapshot of how we spend our money.

At this point, we could see where we needed to tighten the belt a little. One of our big findings was that we were eating out – ALOT! Those $5 breakfasts, lunch runs and “we’re too tired to cook” dinners were catching up to us. We had a couple of other areas we were unknowingly spending a lot of money.

The next step is to tighten up in your overspending areas. This step will be uncomfortable. Not going out to eat as much as we used to sucked. For instance, I personally felt like I was losing a social aspect of work.  Likewise, we felt we worked hard during the week and deserved to go out to a nice dinner on the weekends. But you know what else we found out? We found out we were able to save some money in just a few months. After tightening the belt a bit for a few months, we were starting to see our income trump our expenses for the month (you’re still tracking your finances, right?).

We made a list of our debts – credit cards, loans, mortgages, etc. And we also stumbled upon Dave Ramsey’s Debt Snowball. Spend some time reading up about this approach on your own, but the premise is this:

Pay off the smallest debt first by adding additional monthly payments while still paying your regular monthly payments to all your bills. Then you take the money you were paying monthly on the first bill and tack it onto the payments for the next smallest bill. Once that loan is paid off, you take the money you were paying on the first two loans and attack the third smallest loan with that extra monthly money. And so on, and so on. Essentially you’re paying the same amount every month, but your debt starts to disappear.

Download the Debt Snowball spreadsheet from Vertex42.com

We’re in the middle of this process – approaching some of our bigger loans – and can honestly say it works. Dave Ramsey has a pretty good approach to financial security – give him a chance.

Financial Independence – Now What?

So you’ve paid off everything with exception of maybe your mortgage. What do you do now? First – give yourself a giant slap on the back. You’ve done something that most folks don’t think is possible. You’ve used what you have to get out of debt. You can breath easy. You can sleep sound at night. Next – make yourself a promise. Promise yourself that this will NEVER HAPPEN AGAIN! Make smart decisions, don’t finance your wants and live debt free. Now you can prep with an open mind.

You’re probably asking – do I need to take care of my finances before I do any prepping?

The answer is YES…and NO.

First, remember that building up your financial security is a big part of prepping, so don’t overlook it. Second, realize that you can do small things on a daily, weekly and monthly basis to build up your preps. We’ll get into different ideas when we talk about water and food storage. Also, if you can find ways to augment your income, you can justify making a ‘prepping fund’ where you can save money and put it towards prepping. This approach doesn’t strictly follow Dave Ramsay’s advice, but I have found that allowing yourself an occasional ‘reward’ does help you keep on the straight. At least for me, sometimes I need something more than seeing the monthly statements disintegrating before my eyes. Just be sure that your occasional treats don’t overtake your debt reduction process.

I hope you enjoyed this first article on Prepping 101. I am happy to answer any questions in the comments section here or on Facebook. If you don’t want to make your question public, you can always email me at dan AT suburbansteader.com. Keep an eye out for our next Prepping 101 article on identifying what you’re doing that’s working against self-sufficiency.

photo credit: psyberartist via photopin cc