Today’s article is by Gale Newell, a young woman who is taking positive steps toward becoming self-sufficient. Gale has written for a number of prepper blogs and submitted the following article to us to help us get control of one of our most important resources — our money. This may become the first installment in an ongoing series on financial issues from a prepper perspective. I’ll turn this over to Gale now, and chime in with my own comments below hers.
Budgeting for Prepping
Paper currency will always be a major factor in your life, unless you plan on disappearing into the mountains to live the rest of your life in a cave. Some of us (including me) hope to do this someday, and live a self-sufficient life. Even then, someone will probably find you and want money for something. Until TEOTWAWKI comes and the foundation of our society crumbles, paper currency will continue to hold value in our world. So, what can you do now, as a prepper?
Step 1: Keep track of all of your expenses. There is still a lot of value in balancing your checking account. In addition, recording all your transactions in your checkbook’s register allows you to double check everything your bank does, without relying on an internet connection. A bank has thousands of transactions every day and mistakes, while rare, do happen.
I personally don’t carry my checkbook on me. While this means I can’t record my expenditures as I make them, I keep the receipts from all my transactions in my wallet and then add them to my checkbook’s register at the end of the day. It only takes few minutes and it provides me with an organized record of all my expenditures. Furthermore, it provides me with an accurate, up-to-date balance. Online banking is great, but it can take a day or two for transactions to clear.
I personally like to sit down and compare my checkbook’s register to the information available at my online banking. It’s a quick way to double check my work and the bank’s numbers. This could be seen as an optional step, and it is, but I highly recommend doing it. If everything is accounted for and looks good, it’s time to create categories to sort your finances into.
Step 2: Budget. After about a month of recording transactions, the process of creating a budget can begin. Here are some very useful budgeting forms from www.DaveRamsey.com, which can help you divide your overall budget into meaningful categories. If you are looking to cut certain expenses out of your life you could label a category “unnecessary expenses.” Once you have sorted your various expenses into their proper category, add them up. The totals in each category should give you a good idea of where your money is going.
Step 3: Evaluate. Now that you have a good picture of what you are actually spending your money on, you can decide which areas require some cutbacks. If you created an Unnecessary Expenses category, you could immediately use that money somewhere else. The Unnecessary category could be very handy if you need to save up money to put towards outstanding debts, or if all your debts are paid off, put that money towards additional preps. All you would have to do is set aside the amount you would normally spend on expenses you deemed unnecessary into something like a savings account. Any money sitting in a savings account should not be touched for any purpose other than putting a down payment on a house or getting out of debt.
Hopefully this will help readers see how staying organized and planning ahead can reduce the stress of living within the current times. Budgeting is not something over the head of a prepper. In fact, it becomes doubly important for reducing your financial footprint and making strides to getting off the grid. In a capitalist economy in which everything revolves around money, remember there are things much more important than material goods and extra stuff. Use saving money as a chance to reconnect with friends and family, not spending so many nights out or making impulse purchases.
Gale Newell is continually working on being a self-sufficient human being. She finds herself spending her summer days outdoors, whether raising food in her organic garden or playing cards with friends and family. She enjoys grilling meals on her old-school charcoal grill and has overcome an addiction to multiple television series. Gale feels freer than ever and is truly happy. She is prepared for the future and ready for whatever happens next.
Phil’s Two Cents Worth on Budgeting for Prepping (pun intended)
Gale brings up some excellent points. The late, great motivational speaker Zig Ziglar was known for saying, “Money isn’t the most important thing in life, but it’s reasonably close to oxygen.” Next to tithing and providing for the needs of your family, budgeting for prepping may be the most important thing you do with your money.
Creating a realistic budget can be terribly difficult because it forces us to be deadly honest with ourselves. The things that will really kill your budgeting process are the dreaded occasional expenses. We all have WAY more of them than we are aware of. I read recently that the Back To School season is the second biggest shopping period of the year, second only to Christmas. The average family spends $600 per child on back to school expenses. Did that annual expense make its way into your monthly budget? I just had my roof replaced a couple of years ago. It cost thousands, and it’s something that typically has to be done about once every 15 years where I live. Is that in my budget? How about medical expenses, insurance, car maintenance, saving for my next vehicle, replacing my aging water heater, or the need to travel across the country to visit a sick or dying relative? How do you budget for these kinds of things? I’m going to need to replace virtually everything that I own at some point. Do I have that in my budget? Do you?
I recommend making the most realistic budget you can possibly conceive of, then adding about 30% to it, which you stick in the bank or your private vault, and guard it against foolishness and dissipation until you really need to tap into it. Great advice, Phil. [ Note to self: Maybe I really need to start doing this myself, instead of continually being taken by surprise and driven into debt. ]
An obvious way to squeeze the most out of your prepping budget is to buy items when they’re on sale. September is National Preparedness Month. (Who says our friends at FEMA aren’t looking out for us?) You’ll find some deep discounts on prepping supplies from all of the following vendors. We’ve bought from them and are able to recommend them to our readers.:
Once again, our thanks to Gale Newell, who saw a need and stepped up to address it. I look forward to more thought-provoking articles from her in the future.