A lot of thought goes into preparing for the worst, from how much food and water you’ll need to survive, to how you’ll store everything and what you need to do if staying home isn’t an option and you need to evacuate. One thing that a lot of preppers might not fully consider is the importance of investing as part of your prepping plans.
Yes, there are many situations where having a diverse investment portfolio or a lot of money in the bank won’t help you, but this isn’t all about preparing for the future. It can also be a tool for financing your preparations and ensuring that you have enough money to fund your endeavors before the world ends, such as with an economic collapse. With that in mind, where should preppers be investing their money in 2022?
Learn The Basics
Investing is more complicated than just throwing money at the wall and seeing what sticks. Before you start investing, it’s a good idea to start learning the basics — how the stock market works, the options you might want to invest in, and how to make the most out of your investments.
First, you want to make sure that you’ve got some savings before you start investing. The challenge with investing, especially in areas like the stock market, is that it can be extremely volatile. One rule of thumb, though it is one that is generally bandied about colloquially, is that you should never invest funds that you aren’t willing to lose.
You can spend years studying investing and stocks, but you’ll still spend the rest of your life learning as things shift and change. This isn’t to scare you away, but you should be aware of the ins and outs of what it takes to turn investing into something lucrative or make it a tool to help you prepare for a survival situation.
In addition, you really should consult a knowledgeable and qualified financial advisor before taking action on any advice or ideas given here (or anywhere else for that matter). Years of hard work could be flushed down the drain in a matter of minutes if you make the wrong move financially.
Save or Side Hustle
Investing with a large portion of the income that you use to fill your savings account or pay your bills is not a smart way to invest. Instead, consider creating a separate savings account that you use specifically to manage your investments. Opt for a high-yield savings account, which we’ll discuss more in a moment, or something that offers some decent dividends if you maintain a specific balance.
If saving isn’t an option, because let’s face it, upwards of 54% of American households are living paycheck to paycheck, including many who earn more than $100,000 a year, and you’re still interested in investing money into your future, it might be worth it to pick up a side hustle. That way, you’re not using funds to invest that you might have allocated for other more important things like food, rent, or utilities.
Invest In: Precious Metals
Gold is still a powerful force in the economy, even if most people don’t see it in anything other than jewelry. Investing in precious metals — especially if you have the ability to purchase large stores of wealthy, like ingots, and store them alongside the rest of your survival supplies, can help you in a myriad of ways. Investing in ingots of precious metals like gold, silver, platinum and palladium gives you a physical item that you can trade or barter if the worst happens and the existing economy collapses.
Granted, purchasing much smaller coins would be a wiser use of funds, particularly if you intend on using them to barter down the road.
You also have the option of investing in Exchange Traded Funds or ETFs. These allow you to invest in precious metals in a less tangible way, but it has the benefit of being easier to liquidate, and in many cases, easier to get into because you don’t need a large amount of money to purchase bullion.
Invest In: Homeownership
While you probably won’t have to worry about paying rent if the world ends, do you really want to contend with creating a cache of survival supplies in a home that you don’t own and may have to move out of? Many survival supplies, like canned goods, are heavy and they only get heavier when you have to move them from place to place. Investing in a home that you can modify and turn into a survival shelter makes sense from a logistical standpoint, but it isn’t the only way to invest in real estate.
Just like the precious metals listed above, there are real estate ETFs that you can invest in, which allow you to make the most of the ever-changing housing market without the hassle and upfront expense of buying a home or buying and maintaining rental properties.
Invest In: Land
“He said, “Son, stocks may rise and fall, utilities and transportation systems may collapse. People are no damn good, but they will always need land and they will pay through the nose to get it.” – Lex Luthor, Superman the Movie
As Lex said, there will always be a need for land, and it can be a fantastic investment, both for diversifying your stock portfolio and for having enough space to survive what may come. There are large tracts of land in many of the less typically appealing areas of the country that are selling for a fraction of what you would pay in more densely populated areas. If you’re purchasing the land to develop, this can be challenging depending on how far it is from already existing infrastructure, like power and water, but it can also be beneficial if you find you have the desire to stay as far away from people as possible when SHTF.
Land can be an investment in other ways as well. If you have the option to purchase the lumber and mineral rights to a property, you may be able to sell or lease those rights to companies and use that income to support your preparedness efforts. It is important to note that if profitable materials are discovered on your property and you don’t own the mineral rights, whoever owns them can mine your property without your permission — and without paying you a penny.
Invest In: Barterable Items and Skills
Before we get into the more intangible types of property and investing, let’s take a close look at one thing that you’ll probably use the most if the world ends — the barter system. Most of what we think of as an economy exists in a digital space, and if the power and internet which support that space go down then much of what we think of as wealth will disappear in the blink of an eye! That means we will likely return to the barter system — trading goods and services for other goods and services. Investing in barterable goods, such as extra food, medical supplies, precious metals, ammunition or anything else that you can think of that might be valuable for trade could help keep you alive if you run out of something important in a survival situation.
[Editor’s note: I would be VERY wary of stockpiling items specifically for barter, especially items as crucial as food, medicine, and ammo. Take care of yourself and your family’s needs, then consider items for barter if you must. If you insist on having something to barter for SHTF, consider stockpiling comfort items, like alcohol, tobacco, and coffee instead. Remember, however, that showing you have ANYTHING in excess could put you in danger.]
Learning a barterable skill, such as carpentry, auto repair, sewing, or anything else that you could trade for goods is also an option and should be considered an investment. If you decide on one of these skills, take the time to hone it before you really need it. While a survival situation might give you all the time in the world to practice and hone your skills, you’ll find it harder to get the tools and supplies that you might need to complete your tasks.
[Editor’s note: Barterable skills are a much better idea! And if they can help YOU and your family survive, then all the better.]
Invest In: The Lottery?
Spending money on lottery tickets might seem like a waste of time if you’re preparing for the apocalypse because there is no guarantee of winning, but it can be a good way to hedge your bets, plus give you some extra money to work with if a prize does come your way. The trick is to study the odds and figure out which games to play to maximize your chances of winning without spending too much of your hard-earned cash.
Playing for the big prize might seem tempting because you’ll have all the money you could ever need if you bring home the jackpot, but the odds of winning it are fairly slim. Your odds of winning the top prize in a jackpot pick are 1 in 302,575,350. If you play smaller games, such as a daily Pick 3, your odds of winning a $500 prize are 1 in 1,000 — a smaller payout but much better odds. Choosing a 6-Way Combo play increases your odds of winning that same $500 prize to 1 in 166.7. You won’t be rolling in millions but playing the better odds for the smaller payout can give you a way to slowly supplement your survival fund without throwing money into the wind and hoping it blows back into your pocket.
[Editor’s note: There a reason why lotteries exist; same as with extended warranties, if you ask me. If you’re going to take your chances on the lottery, please don’t use anything you can’t afford to lose and for Heaven’s sake, don’t spend more than a few dollars at a time! And whatever you do, never let cats pick lotto numbers from pieces of paper strewn on the floor…they’re horrible at it.]
Invest In: Cryptocurrency
Cryptocurrency is a virtual currency that is picking up momentum. People who started out by laughing at people investing money in Bitcoin are eating crow when those early investors are cashing out with millions of dollars. Investing in cryptocurrency is a lot more complex than investing in the stock market. For one thing, crypto sales never close, where the stock market is only open Monday through Friday and is closed for all bank holidays. If you get a wild urge to buy a bunch of crypto at 3 in the morning, there is an app for that.
That said, there are new cryptocurrencies emerging every day, and apps like Public and Coinbase allow you to invest in pieces of the larger crypto names like Bitcoin and Etherium, or buy up lots of the smaller meme coins like Dogecoin or Shiba, just to name a few. The obvious problem with such solutions is that they are largely intangible and if the power infrastructure or economy collapses before you’re able to cash out, then you’ve wasted a lot of time, money and effort for nothing more than a handful of bytes that will vanish as soon as the power goes out for good.
[Editor’s note: I think cryptocurrencies do have their place in preparing for a coming economic collapse. That said, governments are getting in on the crypto game, which is never a good thing. As with everything relatively new, take it slow and never invest anything you’re unable to lose.]
Invest In: High-Yield Savings
Savings accounts are a great way to store your money long-term, but they don’t generally offer a lot in return. Opting for a high-yield savings account can make your money work for you by generating interest every year as long as you maintain a specific balance. These high-yield accounts have a higher interest rate than standard savings accounts, so the more money you keep in the account, the more you will make year over year.
It is important to note that these accounts usually have a fairly significant minimum balance and may severely limit the number of withdrawals you’re allowed to make during a month or a calendar year. Don’t throw money into a high-yield savings account and expect to treat it like a checking account. This is the sort of thing that you invest in for the long haul, though you will want to make sure to cash out if a disaster is looming so your funds are available.
Invest In: Stocks
We’ve finally reached the stock market. Investing in stocks, either by purchasing them through an investment manager or through one of the many apps like Public and Robin Hood that have tried to bring investments within reach of the average person, is traditionally a fantastic long-term way to build your accounts and create a more stable future. Like most of these investment options, a significant amount of research and preparation should go into building your investment portfolio. Don’t just start throwing money at brand names you recognize or ones that you happen to like without thinking about what you want that money to do and where that stock might go in the future.
It is important to note that like many types of investments, working with the stock market is one part skill and one part luck. Again, only invest what you’re not afraid to lose because you never know when the stock market might bottom out, taking everything that you’ve invested with it. Contacting a qualified and competent financial manager is always recommended.
Know When To Hold ‘Em
As with most things when it comes to survival preparation, it’s important to understand when to hold fast to your investments and when you should cash out and sell. A good rule of thumb is to buy on a downturn, and sell when the price peaks, but investments can be fickle and they don’t always work that way. Whatever you do, don’t put all your eggs in one basket when you’re preparing for an uncertain future, and make sure that you are able to cash out and liquidate your investments if the need arises.
Concluding Thoughts (from the editor)
As with anything, knowing what to do financially can be difficult. But coming at this from a prepping perspective should shed light on which options noted above are best for your situation. Personally, I believe that investing in land is most crucial than any other option, not only because it tends to rise in value during times of strife, but it’s difficult to truly survive, such as by growing a garden or raising chickens, without it. And the more land you have, the more options you have. If you want to invest in an orchard, for example, you can do that!
That said, I would encourage investment in precious metals, crypto (to a lesser extent), and perhaps a few barter items. I discuss more of my thoughts in my book on preparing for the coming collapse if you’re interested. Whatever you do, now is the time to get started. Waiting until the shit truly hits the fan is too late.
[Note: This was a guest post.]
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