Tuesday, October 23, 2012

Financial Preparedness

Hey fans,

Been a little while since I've written anything on the blog.  I've been busy developing my e-commerce website and building a new one.  I've added a credit card processor to www.InternetPrepper.com (instead of PayPal).  All of this work is intended to help me become more financially prepared, and is an important part of overall preparedness. I'll talk more about that in a second.

The new website is still a work in progress, but I'm working to design and produce my own body armor.  (the new site is www.InfidelbodyArmor.com)  The armor will be hardened military-spec steel, the same type as used on military vehicles to defeat small arms fire and IEDs.  The prepper angle on it is that it is designed to take many, many hits without compromising its integrity. Meaning it can take thousands of hits and still work for a thousand more (ceramic plates can't do that- and to me, that's a requirement in a grid down situation where you can't order replacement plates).  I'll post updates as we start testing and get closer to sales production.

Back to financial preparedness.  When it is necessary to incur debt, such as a reasonable amount to purchase a modest home or to complete one's educations, the debt should be repaid as quickly as possible. Some forms of credit, such as credit cards, have particularly high interest rates.   Once you are in debt, you'll find that interest has no mercy.  It continues to accumulate, regardless of your situation, whether you are employed or jobless, healthy or sick.  It never goes away until the debt is paid.  Do not be deceived by credit card offers, even if they make debt seem attractive by promising low interest rates or no interest for a certain period of time.

If you do have have debts, pay off the highest interest first.  Once that debt is paid, start on the next one, sooner than you can believe, you'll be debt free.  But, it does take sacrifice. Maybe you'll forego the newest big screen TV or a newer model car.  Maybe you'll decide to continue to drive the clunker a few more years and pay cash for the next car.  Bring your lunch to work.  You'll find lots of little ways to save, but unless you write out the check each month on the debt, it won't matter.

Financial preparedness also means you need to make money.  I recommend diversifying your income to whatever extent possible.  You don't want to lose your 9-5 job because you spend too much time on your internet start-up, or let your 9-5 job hold you back from your start up really taking off- it's a balancing act.  Think of different ways to earn a second source of income.  Sell vegetables from your garden.  Do odd jobs.  Freelance or do consultant work.  Coach.  When I first joined the military, I also delivered pizza on the weekends and I made a lot of money in a short period of time.

You can do it.  Make a plan to play good offence (income) and good defense (thrift).  Buy the things that will help you to become independent and prepared. Save for a rainy day (start with 30 days and build up to six months or more).  Teach your children the value of money and the difference between wants and needs.  Stay positive and find ways of having fun while on a budget.

Good luck.

1 comment:

Karen Susan said...

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