Prepper: How to Move Off Grid Now for $10k
Moving off grid is usually a slow and deliberate transition which happens over a period of years. A transition from modern city and suburban lifestyle to a lifestyle in the country. Lets face it, simple country living is the main thing I think most appeals to folks who want to live off grid.
Many people I know have a lifelong dream of owning a cozy country cabin or log home in the mountains. It’s kind of what the American Dream used to be. Now though that dream is becoming shadowed and ever-distant in the minds of the people. Some people give up and get sucked into a monotonous 9-5 work routine and give up on their dream because it seems so out of reach and so far away.
Rejoice! Because that dream is alive and well in the hearts and minds of millions of people all over the world who realize the dream is still possible, and even more so, within reach. It’s right there for those with the willpower and motivation to make it work.
Moving off grid takes planning, patience, perseverance, persistence, tenacity, audacity, and an adventurous spirit.
So…how do you move off grid now?
Simple.
Sell everything you own and use that money to buy land and move off grid.
Seriously. If you truly want to go off grid right now that’s exactly what you need.
Money!
Money is the single most limiting (or contributing) factor to how and when people can go off grid.
If you’re serious about living off grid this will seem like a no-brainer to you. If you’re not so serious, and are just looking to have a place in the country one day, then I’ll be honest with you, living off the grid is probably not for you.
Sorry, but I’d hate to lead you astray. This is not a joke or a party. It’s a serious life altering change. People considering living off grid need to seriously consider what it is they’re getting themselves and their families into.
So… If you’re not upset by that, and you’re ready to make that move you’re probably thinking, “How do I sell my stuff?”, “How much money do I need?”, “What do I really need to move off grid?”.
Let’s answer those questions now.
“How do I sell my stuff?”
Selling your stuff is the easy part. Craigslist and Ebay are the easiest and fastest ways to do it. Yard sales and garage sales are another way to raise money. You could always borrow money from friends or family members but if you’re serious about moving off grid, you’re not going to want to take on more debt just to move off grid.“How much money do I need?”
NOTE: For this article, $10,000.00 will be the goal. It’s a large enough dollar amount to buy a small parcel of land, a small temporary shelter, a small solar power system, and pay for any incidental expenses.The expenses for moving and living off grid will almost always be higher than you think. Usually the best way to make sure you have enough money is to do an assessment of all the equipment, materials, tools, and supplies you will need for at least the first year, preferably 2-3 years. Then triple that number.
Yes! I said triple it. If you think you’ll need $10,000 to move off grid, then you’ll most likely really need $20,000 to $30,000 in cash on hand to buy everything you need over a period of a 2-3 years.
This article will concentrate on the initial lowest start-up costs to move off grid as quickly as possible.
“What do I really need to move off grid?”
There are many things you need to make the move to living off the grid. Besides the land you’re going to need shelter, water and food. Then you’ll need a way to make a solid income while living off grid to pay your bills.
Things You Need To Go Off Grid:
- Land – You’ll need a place to move to of course, this kind of goes without saying, and will most likely be the single largest purchase you make next to your temporary shelter.
- Shelter – Maybe a small temporary camper trailer to start while you build your cabin or home.
- Water – Make sure you have water in the form of a well, natural spring, river, stream, creek, pond, or small lake. You’ll need water for drinking and for sanitation/waste/septic.
- Food – Stock up on food.
- Job – Make sure you can still work from where you move off grid, or start a small business you can run from your homestead.
Start Saving Money By Getting Rid of All Your UNNECESSARY Monthly Bills
Get rid of all unnecessary bills from your monthly spending. You’d be amazed at how much money is wasted each month on things you really do not need, or that you rarely use. There are however things like car and health insurance, car payments (unless you have multiple cars) that are needed. If you’ve got a mortgage that also complicates matters because then you have to sell your current home before you can move off grid.
Here’s some money saving tips that will allow you to put an extra $500 to $1000 or more in your pocket in 30 days.
Note: Keep in mind this list does not fit everyone and is not representative of all people. Some folks are on a fixed income of less than $1500 per month. I personally know people and family members who are on disability and only have an income of $700 to $900 per month. It’s a ridiculously low amount of money to try to survive on I know, but it’s a fact of life. Perhaps this list might help give some ideas on how to save money for everyone.
- Stop Eating Fast Food – Not only is fast food not
good for you, it’s expensive. If you’re spending just $10 per day on
fast food, then before you know it you can spend $300 in a month. This
includes coffee at Starbucks, and all the snacks and other things you
buy at convenience stores and fast food restaurants.
SAVINGS = $300/month - Stop Eating Out at Restaurants – Again this can be
very expensive. If you eat out at restaurants you can spend $50 to $100
per meal to feed a family 4 people depending on where you eat. If you
only do this once per week (as many families do) You’re looking at up to
$100 per meal to feed a family of four, and that equates to $400 per
month in restaurant expenses. Cut that out and your savings increases.
Put that money in the bank!
SAVINGS = $400/month - Stop Drinking Starbucks or Coffee At The Local Donut Shop
– This adds up. Even if you only spend $3 per cup at Starbucks or $1
per cup at the local coffee shop, it’s still $30 to $90 per month if you
do it everyday. Buy the cheap coffee for $10 per can and a cheap coffee
maker. In fact you probably already have a coffee maker, if you do, use
it. If you already use it, good for you!
SAVINGS = $90/month - Stop Extra Unnecessary Driving – This costs money in gas and could add $20 per week or more to your monthly fuel bill.
SAVINGS = $80/month - Stop Drinking Alcohol – Alcohol is not only bad for
your health, it’s expensive. A case of beer or a bottle of good wine
per week is about $20. Multiply that by 4 weeks per month and you’re
looking at another $80 in expenses. If you don’t drink, good for you!
But realize that many people do. (DISCLAIMER: don’t try to quit
drinking without help if you can’t or are addicted; this could cause
serious problems; your health is very important, so please seek
professional help if you need help quitting drinking).
SAVINGS = $80/month minimum. - Stop Unnecessary Shopping – This might be hard for
some folks, but spending money on things you don’t really need, or
things that you use only once and they sit in a closet or cabinet or on a
shelf somewhere unused is a waste of money. This is hard to quantify
with a real number because everyone’s spending habits are different. You
might think you need a new pair of shoes work boots, or maybe you need
that new coffee machine, or a box of crackers, cookies, sweets, new
shirt, or some useless knick-knack that will do nothing for you but sit
on the shelf. Don’t buy it. Put that money in the bank and leave it
there. You’d be amazed at how much money is wasted on small useless or
hardly used items. Even small purchases add up each month. To simplify
we’ll use a good general number.
SAVINGS = $250/month - Lower Your Insurance Coverage – (if possible;
temporarily) – Do you really need a low deductible? If you lower your
coverage (which can be ok if you’re still covered) you can save $100 or
more per month. Put that saved money in the bank!
SAVINGS = $100/month - Downgrade Your Cell Phone Plan – You can save $20 to $100 per month by downgrading your cell phone plan temporarily.
SAVINGS = $50/month - Turn Off Your Cable – Cable TV is old, outdated,
and expensive. Turn in your cable box and DVR. I know. It sucks, but you
don’t really need it, and can do without it temporarily while you save
money to move off grid. Keep in mind, you’re doing this to raise money
to make the move off grid. Ever dollar helps you do that faster.
SAVINGS = $100/month - Lower Your Electricity Usage – Turn off the lights
in rooms. Unplug appliances. Yes! Appliances still use electricity even
when not turned on. Unplug and turn everything off. Don’t use your
microwave if possible. Large appliances consume the most electricity.
Turn off your AC unit or heater. Try not to use it because it makes for
the largest consumption of electricity.
SAVINGS = $75
This number will vary of course, based on your family’s spending habits and disposable income.
There are many ways to save money in a 30 day period. Enough to generate hundreds and even thousands of dollars in savings. Savings you can use for moving off grid.
NEXT STEP:
Set Up an OFF GRID FUND Savings Account At Your Bank
AND DON’T TOUCH IT!
All money you save or would normally spend on all the above items and bills should be put into your OFF GRID FUND account.
Don’t touch it! Leave it alone. Forget about it.
Concentrate on generating more income and more money to put into your account. The more money that’s in your OFF GRID FUND the more you’ll be motivated to put even more in there. It will make you feel good. Trust me. Once you start seeing the balance grow from a few hundred dollars to $1000 or more, you’ll start figuring out even more ways to grow your balance.
Now for the next step…selling all your useless junk and things you do not need or use anymore.
Sell Your Stuff: RAISING THE MONEY
You’d be amazed at how much stuff you have that you do not need. Stuff that you’ve collected over many years that just sits there collecting dust, never being used, and basically is worth money. All that junk is thousands of 1 dollar bills sitting there, doing nothing for you. You might as well make it useful.
Note: Some people may not want to sell their belongings. You might be attached to something, it might hold memories and hold some sentimental value to you. That’s fine. Move on to something else. I’m certainly not saying sell your precious memories and keepsakes (unless YOU want to). Just that stuff is stuff and in my opinion the the lifestyle is more important to me than holding onto the past. I still have some keepsakes that I will never sell though. Things that mean a lot to me, but they are few. Everything else is just material possessions and can be replaced or forgotten about.Every single item is probably worth at least 1 dollar. Knick-knacks, curios, old furniture, unused kitchen appliances sitting in cabinets, old shoes and clothes in boxes in the attic, kids toys, electronics that are obsolete and useless, an old boat or canoe sitting in the yard, maybe even an old car that your wife hates sitting there and has been telling you to get rid of for years…the list goes on and on.
Things You Can Sell To Raise Money:
- Big Screen TV – Yes! Having a big screen TV is nice. But do you really need it? At least right now… Ask yourself; “Do I really need it?” Nope! You don’t. Get rid of it. That’s hundreds if not thousands of dollars in your pocket to put toward your OFF GRID FUND. You can also sell your TV stand and end tables.
- Washer & Dryer – If you truly want to move off grid, then sell your washer and dryer and move to a peddle powered or crank powered washing machine. Line dry your clothes in the air on a clothes line. Besides the money you can generate, you’ll be saving money by not using electricity. This will also come in handy when you move off grid because you’ll be saving energy too. Take the money from selling your washer and dryer and put it in the bank!
- Refrigerator – Sell your BIG fridge! You don’t need it. Get a smaller cheaper fridge to keep you food cool after you sell your big one. Take the cash difference and bank it!
- Microwave – Microwaves are cheap and they make food taste like crap anyway. There’s no reason to own one. (in my opinion).
- Old Kitchen Appliances – We all have unused small kitchen appliances sitting in our cabinets just collecting dust. Sell them. You most likely will never use them. Ask yourself; “What’s more important? The blender or living off the grid!?”
- Furniture – Sell all your unneeded furniture except for your bed, nightstand, dresser, and dinner table. The money generated will be huge, perhaps in the thousands of dollars, depending on the furniture you own. Also, since you’ll be downsizing to a temporary smaller shelter you really won’t have room for your huge sectional, couches, love seats, and other large furniture pieces. Even your beds could be sold IF you already have an RV, camper trailer or tiny house ready to go.
- DVD Player – They’re outdated anyway. You can download your movies from Netflix, Hulu, Amazon, and Google. There’s no need for a DVD player anymore.
- Lamps – You’re not going to be able to use them in your new tiny home, so get rid of them. Bank the cash.
- Magazines – Everyone has a pile of magazines laying around. That’s cash just sitting there.
“OK… So Where Do I Sell My Stuff?”
Craigslist.org is probably the fastest and cheapest way to sell your stuff fast. It’s free, it’s easy, and did I mention it’s fast?! Be careful though, it’s best to have friends or family home with you when selling on Craigslist. Don’t have strangers come into your house when you’re alone. Safety first! Just meet them somewhere public or have a friend or family member home with you when selling from your home.
A garage or yard sale will also work, but typically will cost you money to advertise in the local paper. This is affordable and placing a Garage Sale or Yard Sale ad in the paper is pretty cheap and a good way to reach your local community.
Flea Market or Swap Meet. On weekends and sometimes during the week, you can rent a table at your local swap meet pretty cheaply, usually for around $10-$20 per day depending on how big your city or town is.
Ebay is a last choice for me personally because it will incur more fees and expenses. Expenses you really don’t need and that will cut into your savings. Keep in mind, every single penny gets you closer to your goal of moving off grid. If you’re spending too much money to sell your stuff, then that’s wasted money unless you have enough stuff to compensate for the cost and still put enough away to move off grid.
MONEY RAISED:
Ok, so you’ve raise a few thousand dollars. Hopefully you had a lot of stuff to sell, and saved all your money for 30 days, maybe you have even $10k or more. Now what?
NEXT STEP:
Buy Your Land
The next step is kind of an either/or kind of decision and will be based on your personal preference and comfort level. Personally I’m buying the land first.
Note: Read my article on how to find land for living off grid for information on what to look for and how to pick your off grid land.Don’t go big! Not yet… Think small. Think sustainably. Think realistically.
- Water – You’ll need a source of water. Natural water in the form of a creek, stream, pond, lake, or spring is best, and/or a water well already drilled. This will also save you money because you don’t have to pay someone to drill a well.
- Trees – Trees provide privacy, shelter from wind, fuel, and building materials.
- Rock – Natural rock can be used for building materials.
- Access – This seems like a no-brainer, but some inexpensive rural country land has no legal access and this could pose a problem in the future when trying to get permitting and or actually getting to your property. Make sure there is access or a legal easement.
- Secluded or Remote – Not just for the privacy, but when you buy a remote property it will be more secure and safe because it’s harder to get to. It will also be cheaper than most other land around the area.
You only need a couple few acres to start.
A 5 acre property might be perfect for you and in most places in the USA the price for 5 acres is going to be around $3020 USD per acre, on average in the United States (data from Google, 2015). Price Per Acre Of Land
That’s about $15,100 for 5 acres (average). Some places in the USA and UK are much much more expensive, but this is a USA national average. Some places in the USA you can purchase land for $500/acre or less. So, do your research, figure out where you want to move, where you can move that will allow you to still make a living and produce and income, and look for land there.
A 20% down payment is only $5k (on a $15k property) plus closing costs (if you decide to go through a bank). Purchase your property direct from the landowner if possible. Keep in mind, usually a landowner will want 50% of the purchase price as the down payment on a Contract For Deed. So if the price for the land is $15k, then you’ll need about $7500 in cash to purchase, plus the taxes and fees, title search and all the other expenses, which might be another $500-$1000.
You can negotiate with the landowner for as little as 20% or less if you have decent credit, and expect to pay all closing costs. Total out of pocket expenses will probably be about $6000 IF you purchase your 5 acres at the national average price and negotiate a 20% down payment.
Note: You may even be able to negotiate a no-money-down deal with the land owner if you promise (and can afford) to pay more per month. This will not only give the landowner a larger monthly income, but will help you pay off the property much faster.Buy A Camper Trailer, Tiny House, or Small Cabin Kit
Once you have the land you now have a place to park your camper trailer or tiny home.
For this article a camper trailer will be what we’ll focus on. You could also purchase a small 15×20 cabin kit, but it’s not mobile and you’ll have to disassemble it or sell it if you ever decide to sell you first off grid property. A camper trailer or tiny house is portable.
The reason of course to get a temporary shelter is so you’ll have a place to stay while you build your cabin or log home. Then once you’re done building in a couple few years (or months if you’re fast), you’ll have a guest house where you can house friends and family members when they visit you on your homestead.
Camper trailers are a cheap, easy, fast and portable solution. If you don’t mind living in one temporarily while you build your off grid cabin, then they are the perfect shelter solution.
A typical camper trailer which will sleep up to 5 people will cost about $15-$25k brand new, and you can always find a good deal on Craigslist.org for $5k to $10k, but that’s usually for cash deals only. If you buy a new one then there’s no clean-up or repairs needed and your only need a couple few thousand dollars to put down on it. (depending on your credit)
Note: As I said above, you don’t want to take on too much debt. Debt is probably one of the single largest reasons people want to live off grid, because they believe it will be cheaper and more cost efficient. That’s only partially true. The complete truth is there are “Start-Up Expenses” and lots of them. Licensing, permitting, title searches, (even surveys if the access or property boundaries are in question). You’ll have to purchase food, a water tank, or drill a well. Hopefully you will have chosen a property with natural water or a well already on it. This alone will save you thousands to tens of thousands of dollars in labor, materials and permitting. Your septic system is also very very important. Having a self contained septic system is vital to you temporary shelter because unless you have a septic system already on the land you’ll have to install one, and that will cost you thousands. The whole point to this article is moving off grid with only $10k. It’s possible, but you must shop around for the best deal for your budget. A piece of land which has all these things. The price of that land will be more expensive of course, but it’s worth it in the long run because someone else has already done it.You might be thinking you don’t want to take on more debt. I agree. Taking on more debt when you’re moving off grid seems counter intuitive. However, don’t forget, you’ll be saving hundreds if not $1000 or more per month by cutting back on all your regular bills and living more sustainably. Even if your payment on the Camper trailer is a very high $750 (which it won’t be) you’re still saving an additional $250/month (based on $1000/month savings) by cutting back on all your other bills. Your savings pays for the camper trailer. It’s technically not money out of your pocket.
Don’t Forget The Power & Water! Get a few solar panels or a small 500 Watt AC solar system and install it on your camper for around $2500 or less (note: a battery backup is a good idea but will cost you just as much if not more than the solar panels and inverter). You’ll also need water for cooking and sanitation. So make sure the land you buy has a well or natural water source.Start Building Your Dream Cabin
Once you’re on your land and have your temporary shelter, whether it’s a camper trailer, RV, tiny house, or small log cabin kit, you can start planning your dream cabin on your own schedule. Remember, you’re off grid now, and you can take your time, plan, and build as you see fit.
Or you could simply live in your temporary shelter on a permanent basis. It’s up to you. You’ll be off grid and hopefully well on you way to living a sustainable life, growing your own food, and living in tune with nature.
Total Costs & Expenses
OK, so here’s the breakdown of all the major direct costs to go off grid for $10k
- Land = $5000 down payment + closing costs if any; if you negotiate a good deal with the landowner you may need less money.
- Shelter = $2000 down payment
- Water = Hopefully you’ll buy land with a well or natural water source and a camper trailer or RV which has a septic system already installed.
- Solar Power System = $2000
Quick & Dirty Off Grid Plan
This article is the quick and dirty off grid plan for those that are really just tired of waiting and want to move off the grid now. It’s not for everyone, and I would in fact advise against doing it this way because it may not be suitable for you and your family. If you have kids it makes things tougher because you have to consider school and where they will sleep and whether your whole family will be comfortable in a small shelter. This is a personal decision that you’ll have to sit down with you family and discuss to see if it’s a good fit for you all. It’s a major change in lifestyle. Make sure everyone is on board before you decide to take the plunge. Do your homework and you’ll be better prepared.
30 Days To Move Off Grid
It’s possible to move off grid in 30 days or less if you set you mind to do it and your family is on board and you can still make a living. This is the important part. There will still be bills, you’ll still need money. But hopefully the money you save and budget for will be enough combined with your income to make you and your family very comfortable off the grid.
It’s about living sustainably with less. Downsizing. Simplifying your life so you don’t have all the daily stresses and debts. It’s about moving forward with your life and reaching out and grabbing your dreams. It’s about not making excuses anymore or putting it off any longer.
Living off grid has it’s rewards and will probably be –over the long term– a much more peaceful and less stressful way of life.
It’s all about independence and being able to take care of yourself and your family.
It’s certainly more sustainable and self sufficient.
It’s what I’m doing, and this is how I’m moving off grid.
Now!
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Why to Invest in Food Instead of Silver or Gold
Many people talk about a recurring economic crisis in US, and look for means to place their money so their investment won’t become useless once the economy hits the ground. For example, a reader recently wrote:
“I am a fan of Survivopedia and I love your articles. I just read your article “Top 4 Things to do Prior to the Dollar Collapsing” and it is the first thing I have read that is helpful. Everything else is for millionaires to get off shore banking, get lots of gold, buy real estate and on and on. I don’t have that kind of money… only a few thousand dollars as an emergency fund… I am 72. It seems to me it is stupid to hand on to the money if it is worthless. Is there some other means of currency exchange that those in the know are doing instead?”
Dianne
Having said that, the standard in the financial investment community is to put your investors money beside your own, taking the same risks and receiving the same benefits. So, based on that standard, the best I can do is to tell you what I’m doing myself.
What a Financial Collapse Isn’t
Let me start by saying a couple of things about what a financial collapse isn’t.
- It’s not a total breakdown of society. While we can expect crime to increase, as desperate people try to meet their needs, the police and the courts will still be working, trying to track down criminals and put them in jail.
- Secondly, a financial collapse doesn’t mean a government collapse. Our government, like all governments, is a parasite. As such, it will keep itself alive, even if that means killing off its host. That means that they will be continuing the poor fiscal policy that is causing the collapse in the first place, taking the money that you and I need for recovery.
- Finally, a financial collapse is not permanent. Most only last a few years. Even the worst collapse in history, the Great Depression, was over in ten years. So it’s reasonable to assume that any future collapse will end as well, probably after a few years (Prepare For The Greater Depression and What Will Follow).
The advice that the reader mentions for the millionaires may not even work in the face of a financial collapse. Moving money offshore doesn’t guarantee anything. In fact, the 2008-2009 housing collapse affected the economy worldwide, not just here in the United States. The same happened in the Great Depression.
The fact of the matter is that the U.S economy is the world’s largest. Even China’s economy, which has been growing to the point where it is now the world’s second largest, is less than half of the U.S. economy. So, anything negative that happens to the U.S. economy is going to have international effects.
There is no safe place in the world’s financial markets for money, including putting it in foreign money.
I would have to put electronic money, like Bitcoin in the same category as foreign currencies. Supposedly Bitcoin is totally independent of the dollar, but I’m not so sure that’s true.
People buy Bitcoin with dollars, so there is a connection. As there has never been a test of these alternative forms of money in a serious financial collapse, I wouldn’t put my trust in them.
Even a savings account is unsure. In both Greece and Cypress, the respective governments directed banks to skim off of people’s savings accounts. That could very well happen here. So the last thing I would do is to keep more money in the bank, than what I need to pay the bills.
Inflation is so low right now, that a savings account is a joke anyway. You may as well take that money as cash and stuff it in your mattress, like the gangsters of old. Better yet, find a place to hide it that criminals won’t suspect. Avoid the master bedroom, as that’s the first place they look.
Recommended:
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How to gain complete energy independence
So What Can You Invest In?
Okay, so let’s say you have a few thousand dollars that you want to invest for a rainy day. What can you do? The most secure investment on the face of the Earth has always been precious metals, and I’d have to say that it won’t change.
If you’re like Dianne, you’re probably thinking that you don’t have enough to invest in precious metals. I used to think that way too. That was when I was thinking of investing in gold.
It takes quite a bit of money to buy even one ounce of gold. So, if you’re going to invest in it, you need a good pile. But silver is another matter. I like to think of silver as the working man’s investment, because you don’t need as much money to get started.
Historically, silver has actually been a better investment, with better returns, than gold. That’s why the little bit of investment money I have is in silver and not gold. For $100, I can buy several ounces of silver, enough to make it worthwhile.
I’d recommend buying silver coins, rather than silver ingots. Back when it was illegal for Americans to own their own stocks of gold, an exception was made for gold and silver coins. You couldn’t own ingots, but you could own all the coins you wanted. If such a law were to be put into effect once again, I imagine it would have pretty much the same restrictions.
One of the things we can expect in a financial collapse is that people will turn to bartering goods, and turn away from money. That’s typical in such cases. When that happens, silver coins may very well become the underground coin of the realm.
While gold coins will be worth so much that they are impractical as a means of exchange, silver won’t be. It’s value might make it ideal for people to use.
Check out this page for more survival solutions tested by preppers and survival
My Favorite Investment
My all-time favorite investment isn’t gold or silver, it’s food. That may sound a bit strange as an investment, but I’m basing that on the current state of the economy, as well as what I’ve seen happen in other countries which have suffered a collapse.
People always need food. So, regardless of what happens in a financial collapse, they will be looking for food (Read more: Emergency Food and Water).
Unless you live in a rural area, where people do a lot of farming and gardening, you’ll probably find yourself surrounded by food shortages. In such a case, the value of food will increase exponentially.
This has happened in Argentina, Greece, Cyprus and Venezuela, amongst other places. It even happened in occupied Europe during World War II. People in the cities were so desperate for food, that they would fill their suitcases with the family silver and head for the country, to visit “relatives” on the farm. There, they would find an amiable farmer and trade their silver for hams, sausages, cheeses and butter.
In Argentina hundreds of bartering co-ops rose up in the midst of their financial collapse. While they varied in their form, they all shared one thing in common, the most common items bartered were food items. Food was in short supply in the city, even though there was plenty of it in rural areas.
But food isn’t just good as an investment against an economic collapse, it’s also good as an investment against inflation. Currently, the official government statistics put inflation at less than one percent, and have had it there for some time.
At the same time, food has gone up in price an average of 8.5% per year. That means that if you buy $1,000 worth of food today, in five years it will be worth $1,500! That’s a good investment, any way you look at it.
You don’t even have to sell that food to cash in on that investment either. All you have to do is consume it, taking the money you would otherwise have to spend on food and using it for other needs. Doing it that way would be just like cashing in any other investment.
Prepare for a Barter Economy
I’ve mentioned that countries which have suffered economic collapses ended up with a barter system taking over for their failed currency. I’ve also mentioned how Europeans traded silver and other valuables for food during World War II. Many a farmer came out of that war a whole lot richer than they went into it.
The thing is, any economic collapse will eventually end. We may not see things go back to normal, but there will be a “new normal” which will emerge, just as it did in Europe, after World War II. When that happened, the farmers dug up all the silver they had buried and sold it off, making a huge profit. That can and probably will happen again.
If you have the foresight to invest in enough non-perishable food to use it as trade goods, the financial collapse will give you the opportunity to barter that food for other things of value. Basically, the value of those things will decrease, because they are not useful for survival, while the value of your food will increase, because people will need it to survive.
When the economy settles at a new normal and people aren’t worried about starving to death, the silver and jewelry will gain in value once again, while food will return to a more reasonable price.
I’d also add alcohol, tobacco and key essentials like toilet paper and personal hygiene supplies to your bartering stockpile. The hygiene items will probably become as hard to find as food will, making them equally valuable. As for the alcohol and tobacco, sales of those always increase in a time of crisis. It seems that people want to escape from their problems, rather than facing them.
Tobacco in the form of cigarettes doesn’t store well for a long period of time. But tobacco alone will, especially if it is packed in sealed containers with oxygen absorbers. Add some rolling paper, and you’ve got the means of people making their own cigarettes, just like they used to roll them in the Old West.
The key to making a profit off of bartering isn’t just stockpiling food, but is knowing how to value the items that you will be receiving in trade. There’s an awful lot of fake jewelry around, which looks quite real. So, you’ll have to know how to tell the difference. That doesn’t just go for the gold and silver, but for the stones as well.
The other part is establishing a value for the jewelry, silver or other valuables, based on the mid-collapse economy. That’s going to be a little harder. You’ll need to keep your ear to the ground, so that you know what others are doing. You’ll also need to be able to read the people you’re bartering with, so that you’ll know how much they are willing to give up, in order to get your food.
Remember, you have the upper hand; and while you don’t want it to be a heavy hand, you want to be fairly compensated for your investment. So you need to figure out what makes it a good trade for you. If they don’t want to trade, then you can much more easily wait for another day, than they can.
When it comes to that, there will be an element of risk involved. Whatever you have invested in the food will be at risk. But in reality, that’s a pretty small risk. As I already said, you merely need to hold onto the food for it to go up in value.
The bigger risk is of people who might want to take what you have from you by force. You’ve got to be ready for that, ready to defend yourself, and ready to defend your profits.
But then, any investing is risky, even though the risk doesn’t usually include looking down the muzzle of someone’s gun. All you have to do is be prepared, and you can turn the tables on anyone who wants to take advantage of you.