In This Article
In this guide, I will go over safe financial investments you need to make.
As preppers, we may find it difficult to plan our finances. We have the conundrum of planning for the same things that our non-prepping friends and neighbors do while also preparing for various disasters.
As a result, we must have a retirement plan and a strategy for weathering short-term crises. Along with a long-term crisis plan as well.
Like everyone else in the world, we need to have our investments for both good and bad times. This involves investing in a way that will protect us in the event of a crisis.
If we do so, we should be able to ride out the good times with our money. In addition to our supply stockpile, we require assets to invest and hold, which must be diverse.
Let’s dive in.
1. Precious Metals
Because of supply and demand economics, precious metals are valuable. Natural resources have a limited supply.
As a result, precious metals such as gold and silver are scarce compared to manufactured stores of value such as paper currency. One of the key advantages of investing in precious metals is that they act as inflation hedges.
The Federal Reserve of the United States just poured trillions of dollars into the economy. I’m concerned that this massive infusion of cash will drive up the cost of things in the long run—quite a bit.
Hyperinflationary conditions impoverish populations, as history has shown. We must safeguard ourselves against this risk.
The land is a great long-term investment that’s relatively inexpensive to own. You don’t need to do anything to the property, and you can’t make more land, so there’s a limited supply. And with more people, the land will be increasing in price.
3. Real Estate
Homeownership has always been one of the most common ways for people to accumulate wealth.
Different markets, time periods, and financial circumstances will determine if purchasing a property is better than renting. Real estate tends to rise in value over time.
You also own a tangible asset that provides shelter for you and your family by taking out and paying off a mortgage.
4. High Yield Saving Accounts
You should put money into the house you live in. Even if the real estate market suffers a brief setback, the same home will continue to provide shelter for you and your family.
Despite bull and bear markets, it continues to be useful. And then, you can also sell your house for a profit if the market improves.
5. Government Bonds
This is typically for more conservative, long-term investors looking to cover inflation.
A government bond is a loan from you to a government body that pays interest to investors over a predetermined period of time, usually one to 30 years.
Bonds are classified as fixed-income assets because they provide a consistent source of payments. Government bonds are low-risk investments since they are backed by the United States government’s full faith and credit.
Bitcoin and Ethereum, among other cryptocurrencies, have recently regained popularity. Bitcoin, like precious metals, is an inflation hedge.
To keep the quantity of Bitcoin in check, the reward that Bitcoin “miners” receive for mining Bitcoin is cut in half regularly.
Bitcoin is mined at a slower rate as mining incentives are reduced. Centralized authority is not injecting enormous amounts of Bitcoin. In truth, Bitcoin is not governed by any centralized authority.
Bitcoin and other decentralized currencies will help you sleep better at night. You won’t have to rely on your government to keep track of its currency. Don’t get me wrong: cryptocurrencies aren’t perfect yet. They’re risky, have large transaction fees, and take a lot of energy to mine.
Thus, I recommend remaining a low yield in this.
This is the ideal option for investors who want a well-diversified portfolio and are willing to take on higher risks. Because individual stocks are so volatile, it’s a smart rule of thumb for investors to keep their individual stock holdings to 15% or less of their whole portfolio.
A stock is a unit of ownership in a corporation. Stocks provide the highest possible return on investment while also exposing your money to the most risk.
These remarks aren’t meant to scare you away from investing in stocks. Rather, they’re supposed to point you in the direction of the diversity that comes with buying a collection of equities through mutual funds rather than buying individual stocks.
8. Other Assets
There are many alternative assets that are on the market that you should probably have some of. This includes:
- Cold hard cash
- Certificate of Deposits
- Wine and other alcoholic drinks
- Rare books
- Barter items
The moment to invest in many prepper investments is now. Finally, consider other alternative investments other than the few I listed. Again, we’ve reached a watershed moment in history.
Protect yourself by safeguarding your assets. Make your prepping investments as soon as possible, and make sure it’s diverse to be the most secure.
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