[Dane]

When oil peaks, it is going to be bad news for our economy and even now things aren't looking good for the US dollar. Do you really want your life savings in a mutual fund or a bank when depression-style recessions begin? You could simply withdraw it all...but then you would risk losing it through theft or fire or what not. And if things really get bad, what good will peices of paper do you? Even gold might become worthless, because after all it is only metal. Perhaps it will never get that bad, but do you really want to leave your savings in the form of numbers in a bank's computers? When the power goes off, say bye bye to your money.

I really think it will be impossible to tell whether we are facing simply a global depression with the worst effects only facing the poorest countries, or whether it will be a total break down of civilization as we know it. That is why I would be hesitant to spend all of my money preparing for the peak...you can't be sure of what you have to prepare for. There has to be some way to save your money in a form that will be valuable to you no matter how good or bad the post-peak situation is.

What do you plan on doing with your money, or what are some options you are considering? Are you going to spend all of your money preparing for the peak, or are you going to save it somehow?

[mindfarkk]

i'm going to invest it in things that will serve me either way. for instance, property paid off, growing food part-time, a few chickens, and a home that can power itself off the grid. a penny saved is a penny earned, as they say. that should be enough to keep me busy for a few years. by then we should have a better idea how this is playing out. if i can, i'd like to farm part-time and work part-time in my profession, as a private practice. if things were to go downhill quickly, i'd be prepared to move to complete self-sufficiency. i expect if that were to happen, my boyfriend's kids would want to move in with us pretty quickly, and so we would have a next-generation to learn and help with the farm (i am no spring chicken and have to think of what happens when i'm not strong enough to fend for myself). in the end.... well i'd rather walk into the woods and surrender to the elements than die in some resthome anyway. that has nothing to do with PO, that's just me.

[Kingcoal]

If you own a home, take out insurance that will pay the mortgage in case of financial hardship. Pay off your credit cards down to zero. Pay off your car loans. In other words, pay off all variable interest debt and secure the other debt with insurance. If you've done that already, buy chinese made stuff now because it might never be cheaper. Get your home situated with an efficient heating system, new windows, etc. In other words, take care of as much now before you loose your job.

If you get out of debt and secure your mortgage debt, get your home outfitted and still have money left over, buy gold because it will probably go up to $500/oz next year. The key is to shed all your variable interest debt and prepare yourself for hard times. You might loose your job and have to take one making half as much money.

A lot of people say buy gold, buy hedge funds which is good, but you have to take care of other things before that. If you loose your job, your insurance will pay the loan while you're out of work. You'll be able to survive and keep your home. That's the whole thing. A lot of people will buy gold and keep their car loan, only being forced to sell their gold and loose their car when they hit hard times. Get out of debt before thinking of investments.

If you don't own a home, get completely out of debt and save your money. If things get really bad, you might be able to pick up a decent deal on a home. During the Great Depression, people actually profited off of it, buying up foreclosures, etc.

[frankthetank]

pre-spend it
post-burn it for heat/cooking

j/k

maybe not...

I guess the only sure thing is the dollar is going to keep devaluating versus a basket of currencies.

[savethehumans]

Crazy as it sounds, I'm a member of From The Wilderness, and Mike Ruppert and his allies have a good track record of warning us of when the financial cow patties are about to hit the fan. I am counting on this to give me a few days' warning, so I can get my money the heck out of my bank account!

Meanwhile, I will live on it (rent, bills, food, etc), try to develop barterable skills (equipment costs, lessons, supplies), buy a moped to get around, and fix up my adult tricycle to get around when the moped can't do the job anymore. I don't have the $$ to buy land, or build. I can only hope to latch on to a budding community in time....

[spear]

Im no investent advisor nor do I have much investment experience but history shows that whoever has the lands and properties,has pretty much what they need.Now Im betting that land will always go up.Give me 500 acres post peak and I´ll find the serfs to work it for food.That in turn will give me whatever the currency will be at that time.I´ll give an example.Before WW2,my wifes grandfather bought farmland outside the city.He was a city boy.He then worked this land and during and after the war,he would sell his produce in the city.In many cases,he would trade it for land as the prices were low.He would pick up an acre of city land for a few bushels of grain or whatever.I wont divulge information on what ALL of the property that he bought then is worth today.Now I see a similar trend.Maybe you personally wont benefit from the land but someone dear to you will.

[uNkNowN ElEmEnt]

Is there such a thing as depression/recession insurance to pay it off? Otherwise you would think that they would not insure anyone just because they lost their job. I mean it happens a lot in this day and age.

I guess it might be different here in Canada, I'll have to check. thanks for the clue.

[kpeavey]

Does it make sense to plan for the future if you don't have your current situation under control
Do you take a loan to buy a boat when you don't yet have a honda generator in case the power goes out?
Do you go out to dinner because you have earned a night out, when your home food storage is inadequate to last a month?
I once had a woman ask me what I would charge to build her a wishing well for her front yard. I look around at her 3 kids and asked if she has a college fund for any of them?

People have misplaced their priorities.
They are trying to keep up with the Jones's by buying a new SUV, big screen TV, or inground pool when they have not yet covered the basics.

Air
This is not an item I really worry about. If a problem occurs where I don't have it, I likely would not survive anyway.

Water
2 gallons per day per person for 2 weeks =14 gallons/person is the absolute minimum requirement to have on hand in your house right now. If the water supply goes down, you have 2 weeks to find a replacement source. Having a 2 week supply puts you ahead of just about everyone you know, work with, or live within a mile of. In event of disaster, this may be the single factor which saves your life. Estimated cost if you bleach your empty milk jugs and store them full of water under the porch=$0.00.

Food
Food is cheap, easily accessible, easy to store. Canned goods, dry goods, frozen foods. The minimum to have on hand is a years supply of food for each person in your home. Store the foods you eat. Buy in bulk, save a lot of money. Food production ability is also necessary. You have a years supply, this is the time limit you have to develop your lands to produce enough food to get you by after the storage runs out. This means you also need seed, know how to grow them, know how to save seeds from the planting for the next crop. After crops, knowing how and being able to raise your own livestock gives you the ability to raise your own food.

Clothing
Sufficient clothing to last a year for all seasons, and the ability to mend them. It may also be wise to get some clothing that is larger than your normal size, so at least you can look like everyone else when they are starving.

Shelter
A home, not an apartment or rental property, in a good state of repair.

Power
An independent source of electricity, be it a generator, solar, wind. Depending on the grid for your power is to place faith in a system which will undeniably fail within your lifetime.

Security
A means of self defense. Dogs are a good start. Smith and Wesson is also an avenue to pursue. Firearms are safe IF YOU ALSO KNOW HOW TO USE THEM. Spend the money, go to gun class, practice with it, learn and practice gun safety.

Education
Fat, drunk and stupid is no way to go through life.

Retirement
If you have all of the above, and the money to pay for property taxes, you can retire anytime you like. The need for money will be mostly gone already. This makes you independent of an economic collapse, and removes the fear of it.

Once you can guarantee all of this, then you can go for the luxuries and fancy stuff. Work until you drop dead if thats what floats your boat.

I see people I know spending their hard earned money on things they don't need. A cover to a kleenex box that looks like a cow. Shiny wheels for their car so they can look cool. The right label on a shirt. The latest movie on DVD.
If you cut out all the frills, junk food, entertainment, decorations, and direct your attention at your needs, you can cover your arse. Do people really need to be entertained with a giant TV with surround sound for 6 hours a day?
Most people have their priorities screwed up. It is not necessarily their fault, consumerism teaches people to get what they want and to get it now. You can pay for it later. If you get the big screen TV, then lose your job and can't afford to heat your house, exactly how did you pay later for that TV?