Now for the prepping aspect of Baby Step #1. Having cash on hand is essential for preparedness. Consider this:
- During the Great Depression, FDR declared a bank holiday. All banks throughout the country were closed for several days. If that was to happen today, you would definitely want to have cash at your fingertips.
- If the grid goes down in a short or long-term emergency, cash or barter will be the only way you can buy goods. ATMs won't work and neither will your debit or credit cards.
In his book, The Total Money Makeover, Dave relates the story of one of his listeners who put her $1,000 emergency fund in a cheap glass picture frame. She wrote "Break in case of emergency" on the paper she displayed in the frame. The frame was then hung on the wall behind the coats in her coat closet.
Many survivalists and preppers think that precious metals are an emergency fund essential. That is not a priority for me at all. I have way too many other things I need to spend my prepping money on at the moment and I'm not sure gold will end up being a quality investment outside of preparedness over the long haul. Read more about why you may or may not need to buy gold here. Dave Ramsey doesn't think gold is a great investment, but then again he thought I was a nut for storing food.
Saving money for an emergency is key, whether that emergency is TEOTWAWKI or simply everyday life.
Read much more about the Baby Steps in The Total Money Makeover. You may also be able to listen to Dave on his syndicated radio show. Dave's the man!