Folks are getting a bit scared

     Some of this is based on my local observations and comments I’ve heard. So take it for what it’s worth as a data point and not a research paper or scientific study. Today I got my check from the gov.  for my disability. So shopping is always more busy on Wed. But I saw a bit more buying and a few more comments from clerks about how folks were buying up stuff. I think the SS, military, VA benefits checks not going out was a bluff, but some folks are reacting like it may happen and are stocking up a bit  (I Hope), or planning to get drunk and forget about their problems and hope it’s a bluff.
    I think most folks are starting to see at least that FRN’s (Federal Reserve Notes) are getting ate via inflation. No matter what the official rate of inflation is 2.7%. Folks know they have a lot of month left after the paycheck is spent. Basic foods like bacon, coffee, butter, milk, pasta and bread prices are rising monthly if not weekly. Energy prices and mad weather has made things harder and more costly. Amtrak trains are getting held up by the flooding in the Mid-West. Well you can bet freight cars are having a devil of a time as well. Between flooding and the drought America’s bread basket has been devastated Yet the USDA is saying things are fine, highest amount of “plantings” in years. Perhaps as fields die from drought and flooding farmers are replanting the same fields again trying to get some kind of harvest.
      This isn’t a dose of Doom so much as a dose of letting you know you are not crazy!  Basics are getting more expensive! The Media, Elites and government are lying to you. Things are bad and will get worse. But you still have time to get the basics and get a few good prices on items to see you through this. Beef should see a price drop the next few weeks. Time to make room in the freezer and buy some canning jars so you can take advantage of it. Grains, Cotton and Dairy, I think will keep going up in price, but there is always a bit of lag time built in. So while prices are not great.  I think they will be higher in a couple of months. Energy: if you can your heater oil/gas, and few gas cans filled with fuel. Insulate your home will give a huge bang for your buck if you can afford it.
     Financials: Get as debt free as quickly as possible. Cut out all that is not a need, and live on 70% of your income. It can be done, but only if you get out of debt. That other 30% must go toward 10% savings/ debt reduction, 10% Emergency Fund and 10% charity (this can begin at home).  Have 1 month of cash for month of bills at home (in 20’s) not in a bank. Build an “Emergency Fund” of 5 months total income in a money market or savings account. Something you can write a check and pay a big unexpected bill.  I’m a big physical PM (Precious Metals) fan as opposed to any of the other markets. While you can’t eat gold or silver, paper stocks, bonds, T-bills and FRN’s are not very nutritious either.
    I have done all of the above, 1 person making about $18,000 a year. No other assistance though I did qualify to get my house insulated. It’s not that hard living on less than $1200.00 per month in Idaho, I have Sat. TV, an Internet connection, a 2003 Kia mini-van, I buy silver and my home I’ve saved a bit of cash, got a bit of fuel, food and water. I started earlier than most folks and got a bit better price. But anyone can do it! I’m not special, except I think out of the “Box” on how to get things done.

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One Response to Folks are getting a bit scared

  1. ThriftyPuppy says:

    All good recommendations – the only comment I would make is that, if you are storing your money in a bank, choose a local one that you trust and is solid. You can use this list here as a double-check: http://bankimplode.com/list/troubledbanks.htm. I think we the People are finally waking up and realizing that this charmed life that we live is not guaranteed and we may very well lose it. Prepare yourself accordingly.

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