Stop Hoarding Cash!

I know....

With all the craziness in the world right now, the tendency to start hoarding is difficult to overcome. Especially since, even now, it is still not unusual to see empty shelves at the grocery story.

But remember, the purpose of prepping is to have enought, not to hoard and deprive others of necessary supplies.

Unfortunately, that tendency to hoard also pertains to cash. I have had several people ask me lately if they should withdraw most, if not all, of their money from the bank. 

My answer? Absolutely not!

First, this is not the type of situation where ATMs or electronic payment systems are down. You can still go to the bank and get cash if you need it. You can still pay your bills online and use your debit card to buy your groceries. If you have enough cash on hand to get you through a short disruption, you are good.

Second, your money is safer in the bank than it is in your home, It's insured. If you bring it home and you are robbed, or your home is destroyed in a fire or other natural disaster, you just basically lost all your money. Insurance may cover some of that loss, but probably not all of it.

Third, if your money is sitting at home in a shoe box, it is not working for you. It's not earning interest. It's not growing and building wealth. Until you need it to pay for something, it's just sitting there. Doing nothing.

"But what if the unthinkable happens and the banks collapse? How will I get my money?"

I suspect if it things were getting that bad, there would be enough warning signs for you to go withdraw whatever you think you needed. But let's be realistic. If the economy totally collapses, the odds of your cash being useful for anything other than kindling are pretty slim. So instead of hoarding cash, I would start stockpiling things that could be bartered in trade. 

Check out my article Bartering: Get What You Need Without Cash to get started.

And stop hoarding cash!

If Your Finances Aren't in the Best Shape, It's Time to Own It

I admit it. When it came to my finances, I turned a blind eye to my issues for a very long time. I knew counting how long it took a check to clear so I knew when I could pay my bills was risky. That charging everyday items on my credit cards because I didn't have enough cash on hand pay for them wasn't smart. That paying bills a day or two late so I wouldn't get hit with a ding to my credit score while waiting for my next paycheck was a clear sign of trouble. Sometimes I would miscalculate and then my husband would ask why the cable or the phones were shut off. I would try to make up some excuse, but we would still have a huge fight over my money "management." But I kept the blinders on and ignored the warning signs. I was trying to just hang on for the short-term until I figured out a way to fix everything...without sacrificing anything on my part.

But then the day came when I just couldn't juggle things anymore and I knew it was time to tackle my money problems head-on or I was going to wind up in serious financial trouble.

If you are on the brink of financial problems, you are almost certainly experiencing warning signs as well. You're paying bills late. You're fighting with your spouse over money. You pray there aren't any emergencies because you don't have the money to cover them. And you may also be ignoring the signs, hoping to hang on until something miraculously changes to save the day. Well, I'm here to tell you that this is one time you shouldn't wait for the miracle. If you are headed for a financial mess, it's time to pull your head out of the sand, take off the blinders, and own your problem.

I get it. It's embarrassing to admit you've let your finances get out of control. Maybe it wasn't entirely your fault. You lost your job or had an unexpected big expense. Maybe you have other issues like low self-esteem or depression and shopping makes you feel better. Maybe you feel like you have to spend money on your friends and family to earn their love. Whatever the reasons, it doesn't matter. It will be a lot more embarrassing if you wind up in court for debt, or have your wages garnished, or have to file bankruptcy. Now is the time to admit your finances are out of control and fix it!

I know how easy it is to get into money difficulties. It happens so slowly. Lunch with friends...your treat. Charge it. A little weekend getaway with your spouse on the credit card. You'll pay it off when the bill comes it. But then the car needs repairs and your child gets sick. But that's okay. You'll get it paid off next month. But then there's a great sale on shoes and you really love them and you've been working hard so you deserve them. And the dog needs a trip to the vet and suddenly you're making minimum payments and then the interest starts to pile up and suddenly....you're under a pile of debt and you don't even know how you got there.

If you were experiencing symptoms of illness, you wouldn't ignore them. You would make an appointment with your doctor to treat the problem before it became serious. If you are experiencing signs of financial illness, you shouldn't ignore them either. It's time to slow down, take a realistic look at your financial situation, and get whatever help you need. Before your financial illness becomes serious. 

If you're not sure how to start, I suggest you start here:

Thoughts on Things Financial: Your Guide To A Chaotic Money World Paperback

Best $4 you'll spend all day.