The world’s economy is interconnected. When America sneezes, currencies wobble.
Given that economies are connected and more exposed than in the past 200 years, people are concerned about how to survive an economic crash. Rising interest rates, growing inflation, policy change and a housing price correction are all key risks.
But, there are other risks which include government intervention, collapse of the power grid, home invasion, a run on the banks and the collapse of a currency. How prepared would you be if you cannot access your cash?
6 steps to protect your cash
- Maintain at least one month’s salary in cash as a reserve.
- Store this cash in a diversion safe in your house. You can create your own by cutting the bottom off a tin of food, washing out the tin and adding a plastic cover. Place cash in the tin and hide it amongst other items in a storage cupboard.
- Rent a self storage unit. This will provide you with extra space to store useful kit as well as certain valuables for bartering.
- Install a safe at home but cover it with a cardboard box marked ” books” or ” utensils”. Make sure that the safe is bolted to the floor or wall and has an independent power supply.
- Invest in small ingots of gold, platinum or silver. These metals will always go up in value during a crisis and provide an excellent hedge against inflation. Also, like jewellery, these precious metals can be easily concealed and transported.
- Keep money in offshore banks that you can access. Remember, we had access to money long before the internet and digital currencies.
However, during a crisis, cash will be the oil to drive a local economy until the bartering of goods takes over.
H.E.A.T. tip: Always carry a high denomination note (€500 or $100) on your purse. You can use it to motivate people to help you in a tricky situation.
Join one of our H.E A.T. courses to learn how to protect your wealth and keep your cash.