Part of planning for the worst-case scenario is to make sure that you will have enough money or assets when all the banks shut down.
There are many situations where this might happen, other than a disaster.
Even a bank or financial crisis, a shutdown of offices and businesses, or a local conflict can already send many people scrambling for cash to buy provisions. You do not want to be one of those who has nothing in such situations.
In general, banks are safe because deposits until $250,000 are insured. Moreover, many people actually find it hard nowadays to live without a bank account and a credit card. They would need it to build a credit rating, pay bills, and purchase things on credit.
Still, especially after the housing bubble and the recession that soon followed, many people have started to distrust the system and want to look for alternate ways to keep their savings other than storing it in the bank. After all, with interest rates close to 0%, there is absolutely no advantage in keeping savings in a bank account.
Whether you are distrustful of banks or simply planning for the worst-case scenario, you should also consider putting your money in other places. Not only do you set aside (and not spend) your savings money, but you are also preparing yourself for emergency cases. Here are some ideas on where to protect your money:
1. Purchase Precious Metals
This has always been a popular way for those with money to store and want to keep it for a rainy day. Back in the days before paper money, individuals traded with whatever they had. After all, some metals are very rare and therefore, quite valuable. While no one pays with gold coins anymore, it is still a great investment that you may be able to get rid of easily.
Some metals also hold greater value than others, which is why it also makes perfect sense to invest in them. Just make sure you check which metals there are, and you can easily start a collection. More than that, you will need to close the barter system.
2. Store It In The Government
Stocks are highly risky and unpredictable, especially if you need or want a new car. The chances of winning big are high, but you might also lose quite a bit. During the recession, almost no one is making any money. However, the Treasury and the Federal Reserve of the US is not just safe and risk-free, it also has the highest rates at the moment. Though 1.5% is not much of an interest, it is still better than nothing.
3. Buy Other Physical Assets
Money is not just printed and distributed; every cent or dollar represents an amount of metal, most likely gold. That paper money and those small coins are only substitutes so you would not have to carry a gold bar every time you want to buy something.
You can also keep your assets in real estate, for example. Other than jewelry, watches are a popular option. Some also prefer to invest in artwork, but there are certainly many valuable things out there that can easily be resold or pawned in case of emergency.
4. Hide It Under the Mattress
A simple ATM breakdown or a liquidity crash can already justify hiding your money under the mattress or anywhere in your home. While you will certainly not risk your money losing value, you also lose the chance for your money to earn even just the smallest interest. Moreover, hiding your money at home makes it easy to recover in times of emergency. You do not have to choose under the mattress, you can also bury it in the backyard or simply keep it somewhere safe and where no one will see it.
5. Invest In A Business
Much like the other items in this list, there is no guarantee that you will earn anything when you invest your money in a business. But if it is profitable, then you can enjoy the return on investment (ROI) yearly. Some wonderful business ideas include a farm, as this allows owners to also grow food in case of a disaster or earn a huge amount of money.
There are many reasons now that make people very suspicious of their banks or at least, want another way to save some money in case of emergency. While it is difficult to live without a bank account entirely, you can easily lessen your reliance on these financial institutions. There is nothing to be ashamed of, if you think like a survivalist. You are not alone. And by following the 5 steps outlines beforehand, you can easily live a life without dependence on the financial institutions. Plus, you may even gain better interest than what these banks are offering now.