Prepping or becoming wealthy, the wise way.
As I am writing this the Covid-19 (Coronavirus) is still ramping up in the United States and people are panic buying in bulk all sorts of things, but especially toilet paper, hand sanitizer and cleaning chemicals. As a result, prices have greatly increased and online scamming has gone wild.
Stop overpaying for stuff during a panic. Don’t pay $5 a gallon for bleach (it was sub $2 three weeks ago), retail plus for TP, steak, ammo, whatever it is. If you NEED it get it. If you are frightened, step back. You don’t need a 3rd handgun right now. You have not even taken a class and received professional training on how to use it effectively now.
What do wise wealthy people do? They don’t buy in scarcity; they buy what is inexpensive at the time. Right now, what is plentiful and cheap? Do you have enough of that? Not necessarily for now, but for an event or investment?
For example, I would think it wise to get as much fuel as you can. Gas has not been this low in years. If you only have room for one 5 gallon can, get it and fill it up, if you can store four 55-gallon drums, get the four drums and start filling them, as your budget allows. It should be a priority to invest in the cheap while it is priced below market value. Other purchases may need to be put off. No Starbucks, no new tattoo et al.
Another example of what is on sale is many stocks. While the stock value of Zoom has skyrocketed, other stocks of everyday companies that will be around and will be needed have plummeted to discount levels. The time to invest in them may be now. Back during the Obama administration, Chrysler (FCAU) automotive was less than $3 a share in December 2011. Before Covid-19 struck it was up to $24.17 a share. It was $6.40 a share as of closing March 19, 2020 (last night). While I am not a Chrysler fan, this is just one example of where you could spend your money on something that will have more value in 3, 5 or 10 years than overpriced TP or hand sanitizer.
Another wise investment may be re-financing your mortgage, the FED just went to a 0 (zero) percent interest rate, you could reduce your home required payments or wiser yet, reduce the interest rate and keep paying the same payment (assuming the new one would require a lesser payment). You would pay off your home faster and with less out of pocket. A home free and clear of a bank note is much better than overpriced and panic bought stuff.
When times are good and or plentiful you should be acquiring what is needed in an event slowly and when on sale. For example, canned green beans have gone to $1 a can at Walmart during this virus. They were 65 cents a can. When they were on sale for 35 cents you should buy 1, 2, or 3 extra’s, what you can afford. You can read more about my thoughts here: http://www.the22man.com/2016/10/prepping-emergency-food-2/
It would be wise to give up luxuries to make these sale purchases. As Dave Ramsey say’s, “you have to live like no one else, so you can live like no one else”. Eat out less, drink coffee at home, quit smoking (yes, I went there, I quit, so can you for freak off!), don’t buy a new house just because everyone else is.
My prediction (not a prophesy, just a thought) is that as things get back to “normal” prices on many items that are not available will come down and go on sale. In person events will come back, you probably will be able to go to a baseball game, take a firearms class or attend a Broadway performance for less than they cost a year before. The businesses will be back open, they will need the customers (money) and provide discounts to get you in their doors. Maybe home repairs will be more reasonable and affordable?
The lesson is, quit or don’t panic buy, don’t overpay unless you must have it, look for where it would be best to spend or invest or save now. Keep calm and carry (concealed) on.
Until we meet again, keep your booger hook off the bang switch until on target and ready to fire.