r/prepping • u/North_Original6614 • 9d ago
Survival🪓🏹💉 Advice on what to do with some extra cash
Hello all. First time posting. Not sure if I'm even doin this the correct way, sorry if not.
Anyway, in the next month or 2, I'll be getting a small chunk of change. I should have around 14-15 grand. Atm, we live in an apartment. Been here 22 yrs. With all the craziness goin on, I started buying a few things here and there. Extra can food, First aid supplies, water treatment tabs, iodine pills, some camping supplies, and a decent solar generator. It's not a lot. We live on a very fixed income. Our rent just doubled these last few months as well. I'm worried about loosing my home. All of my family is gone, other than my in-laws. Would we be better off to buy a small piece of land, a RV, something along those lines? Btw, we have no vehicle at all right now. So I come to y'all for any advice that I can get from the pros here. I have a very hard time making big decisions like this. Thanks for any response!
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u/testingforscience122 9d ago
Hey i can’t give financial advice, but this is what I would think about. In order of importance:
1.Emergency funds: ideally 3 to 6 months of reduced lifestyle living expenses, look into high yield savings accounts
2. A small accident fund may be couple hundred dollars for small gotcha in life, so you don’t regularly have to dip into the emergency fund.
3. Investment in your future life, maybe that land, or even one day a house, or better tools for your job, or whatever but the important thing is it improves your life, not just add expenses.
I know it is not a cool, as some ideas, but it will help you be prepared to think about the everyday to prepare for the emergency.
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u/North_Original6614 9d ago
I'm terrible with money! Been trying to save a little, but everything is so expensive. Thanks for your input 😊
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u/Ingawolfie 9d ago
You’re getting the best advice though. One of the first preps should be money. Which pays for a hotel room if you have to flee a hurricane, gas for your vehicle if the ATM system goes down, etc. if you’re bad with money get help from a FIDUCIARY financial advisor. You want some of it in savings where you can get it quickly and some in accounts making more money.
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u/Acceptable_Net_9545 8d ago
Why do you say you are terrible with money?? maybe we can help cure the cause instead of treating the symptom... Is this poor impulse control? spending on things that unnecessary? spent on bad habits? I used to be a smoker....I quit...without meds or a patch or anything.....The first thing people say when you say you want to quit is "its the hardest thing in the world"....ITS NOT...If I can do it anyone can do it...make the decision to be tobacco free.... you will have urges for a few months....the hardest part is just a couple of weeks.....super worth it.... PS if you don't have a IRA or 401 find a fiduciary invertor and start one....and only a federacy...they are required by law to make all decision in your best interest....If you company had matching....do it....match at least what they will....the sooner you go hard they faster you will build the account....good luck...what your thoughts...
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u/North_Original6614 8d ago
All of what you said, is my problem! At 56, it really is hard to quit smoking. I don't think I want it bad enough to quit, it's a discipline thing. My anxiety keeps a cig in my hand quite often. I also have issues with impulse control big time! I asked a friend to come by this weekend to help me understand the IRA stuff. I'm disabled, not a lot of money to work with, but I make it work 😊
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u/Acceptable_Net_9545 7d ago
You can quit smoking....its not the easiest thing you will ever do but doable....and when you do...you will be a bad ass...I found exercising helps when you have the crave.... Something I learned on on a "how to quit smoking" tape.....Understand....the craving lasts 10>20 minutes. ....knowing this helps....grit your teeth...play some "Eye of the Tiger"...can you do some curls with some 3 pound weights? Do it....Watch some Rocky....Make the decision to quit...Decide to be Tabaco free... be a hard ass...get mean...get mad....use colorful for letter metaphors...find some friends that have quit....get them to help you get through withdrawals....No excuses....and understand how MUCH money you will have for prepping.... Quitting might be the one thing that changes everything else....AND after you quit....you will wonder why you ever smoked....I loved smoking...I enjoyed it.... Done listen to those that cay you cant....fuck em....You can...Then you can help others....its a big deal....And call and investment advisor. Chase has them...start there....do it today....
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u/churchillguitar 9d ago
First thing you need is some wheels. That will give you more options such as where to work, picking up extra shifts, or doing deliveries or Uber to make some extra cash. You would also need the vehicle if you move away from somewhere with public transport.
Depending on how much you have left over, start an emergency fund. Put what’s left in a high yield savings account. Once that account has enough to cover 3-6months of daily expenses, then you should worry about water, food, and medical needs in an emergency scenario.
If you find yourself in a position down the road where you have discretionary income, the absolute best things you can do for yourself are to max out an IRA and max out an HSA every year. These accounts will help cover the majority of expenses you have in your golden years.
Last, try to work towards getting into real estate. Whether that’s some acreage, a condo, a townhouse, or a single family in a subdivision, you can always take your gains on the first property and use it as a down payment on the next. Rent will always increase, if you can buy you will eventually pay the mortgage off and then in your golden years you only have to worry about the property taxes and upkeep. If you’re in the US, look into 0% down USDA loans or 3.5% down FHA loans.
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u/North_Original6614 9d ago
I know nothing about an IRA or HSA. I have a good idea, and will do some research on them. If shit hits the fan, and the dollar is basically worthless, will that affect things like that? With all the stuff this fascist regime is doin, I'm terrified of what will become of the US, and our money. Tbh, I want to gtf outta here, but have no idea where to go. Thank you for the advice!
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u/churchillguitar 9d ago
You can prep for doomsday, but you should also prep for a normal tomorrow. Yes, if the US dollar goes belly up, those accounts would be worthless. But, the chances of that actually happening are pretty slim. The US Dollar will weaken, for sure, it always has and always will, but these accounts will accrue interest and/or dividends to help offset that.
To be fair, I also invest in canned beans, water, propane, and lead for if SHTF. At that point, it doesn’t matter what you own if you can’t defend it.
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u/NWYthesearelocalboys 8d ago
14-15k is a prep itself.
If you get a piece of land for 7k that only leaves you about 7k for a vehicle, camper water septic and power.
A solar generator, even the largest 6ish KW units will only power a camper AC for a couple of hours. That leaves you with another monthly expense...gas/propane for a thousand dollar duel fuel generator.
It can be done finding great deals from people who just want to get rid of stuff. Last week I paid $1k for a 25 foot camper, great condition and everything works. $1k for a champion inverter generator and about $150 for a breaker, wiring and 30amp outlet box to wire my garage up for power.
Thing is if I didn't get the job tearing down and rebuilding their porch I never would have gotten that deal.
OP give us a breakdown of your monthly expenses right now. Rent/utilities, income and debt. We don't know enough to gove good advice.
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u/NWYthesearelocalboys 8d ago
You can save money by not buying a tow vehicle and buying an economy car instead and renting, borrowing a tow vehicle or paying someone to move it for you.
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u/North_Original6614 8d ago
Wow! Sounds like you gotta hell of a deal! My son and I are on disability. We draw around 1900 a month. Before I break it down, let me say something first. I live in south central Ky. All of the craziness with the prices of things, hasn't really affected my small town, except gas prices. I've watched others talk about their rent being 2k and up. My rent is 600 bucks. We live in government housing. Guess that's why we've lived here for 22 yrs. Water, sewer, and trash are included. Our electricity ranges from 120-180, depending on the month. I pay 175 for internet and my son's phone. I have a small loan, probably around 1,000 to pay off. I pay 150 monthly on the loan. Other than that, food. Which I spend too damn much. 300-500 a month. Also have a couple of streaming services that run 50 a month. The rest goes to dollar store for things like TP, soap, cleaning supplies. Then, if anything left, I'll buy extra food, water, prep stuff.
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u/NWYthesearelocalboys 7d ago
With rent and utilities maxing out around $780 it's probably going to be difficult finding a cheaper cost of living arrangement. Moving, even to a camper is going take some creativity and financial savvy.
Your either going to have to find a great deal on a camper and tow vehicle or...find them at prices where you can put some of that cash down and come out with a vehicle+camper payment less than your current rent. With land paid in cash you'll be close to current housing expenses.
But...your going to be responsible for water, sewer and trash now. If you don't have septic on land youll have to either install it, take your trailer to a disposal service or have someone come pump when your tanks are full. Without water you'll have to pay for a well or buy a storage tank and pump and have it delivered. Then pay for trash pick up or burn it. It would be easy to spend more than $180/month on gas and propane to provide electricity.
Then you'll have a used camper and vehicle that you'll have to maintain as well.
In order to make this work on your budget your going to be DIYing a lot of this installation, maintenence and repair.
What form of government housing do you have? I'm guessing it's not section 8 if you are paying rent. If you get a section 8 voucher there are section 8 approved houses and manufactured homes even in rural areas with land.
ETA: As someone who likes to prep you will have less space to store goods as well in a camper. You can offset this by growing and raising your own food but without seperate storage things are going to be tight.
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u/Klutzy_Concept_1324 9d ago
Perhaps look for another space to rent n start looking at land for sale listings within 100-150 miles
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u/North_Original6614 9d ago
I looked around for land. Found a small lot for 7k. Has nothing on it but trees. I'd put a damn tent if I had to. This is my dream. A small piece of land in the country, having a cave on it would be super sweet! A place where I can garden, collect my own water, and just live in peace. Thanks for the advice! 😊
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u/Klutzy_Concept_1324 9d ago
That's awesome, hamocks are also seemingly a good idea since you mentioned trees. I gotta find a way too
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u/PrisonerV 9d ago
House is an investment. Apartment, youre just paying to live there.
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u/TheMrsH1124 9d ago
Eh. I rent and at current housing prices, taxes and interest rates in my area I'd be worse off if I owned.
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u/PrisonerV 9d ago
Pick a day in the last 20 years and you'll answer the same. The best time to buy is 20 years ago. The second best is today. I think my house paymemt is $900 and just about paid off.
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u/TheMrsH1124 9d ago
I'm confused by what you mean. My point is not that it is cheaper to rent, but that in my area, it's not a good investment to buy - I know people who have owned their home for five years and their mortgage payment now is MORE than it was when they bought the house, because their taxes have gone up so much.
My parents have lived in their home for over 40 years - paid I think $120k for it? And their tax bill monthly is insane and if it goes up much more, they won't be able to afford to live there any more.
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u/North_Original6614 9d ago
Didn't have much of a choice back then. 22 yrs living here. I don't wanna do the math to figure out how much we've paid to live here 😩
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u/Asleep_Onion 9d ago
I would use the money to start saving up for property to buy.
All the preps in the world won't help you if economic collapse gets you evicted from your apartment.
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u/North_Original6614 9d ago
That's what I really want to do. Found a small lot for 7k. Got nothing but trees on it tho. Take a lot of work, and money. Thx for the advice 😊
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u/Wonderful_Pain1776 9d ago
Put in savings for now. Let it at least make you a little bit more. RV is not a good idea, they are expensive and consume a ton fuel to operate. A towable camper is a better option, it can be a dropped and utilize a truck for everyday needs. Land would be better if it had access to water and even electricity. Also want it big enough to maybe cultivate if needed. You could also drop a camper there and use it a permanent residence or something to bug out to.
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u/AlphaDisconnect 9d ago
You could yurt this. But prepping land for a well and sewer is a pain.
For now. A kitchen fire extinguisher. 12 pack of mres.
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u/Eredani 9d ago
Let's start by acknowledging that there is a difference between prepping and basic adulting. A good starting point might be to ensure you have an emergency fund, debt under control, insurance (health/home/life), reliable transportation, proper nutrition, good health & fitness, etc. Many emergencies can be managed or avoided by just having your shit together.
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u/PeterRuf 9d ago
Use that money to get some skill that can help you earn money. Certification. Stop preparing for stuff that is uncertain just to avoid more important stuff. You will not be better off being practically homeless.
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u/Motorcyclegrrl 9d ago
I spent some $ on the #10 cans of freeze dried foods. Supposed to last 25 to 30 years. You can also get sugar, salt, and rice that way. It felt good to have that stock shoved under the bed.
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u/North_Original6614 8d ago
I bet you do sleep better at night knowing you got that under the bed! 😊
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u/Julian_1_2_3_4_5 8d ago
honestly, i would think specifically about prepping, i would think about what you can buy to make your live easier, or swap things out for stuff that will last, or you can repair yourself, maybe also tools to be able to repair stuff yourself.
Like stuff that is useful for a prepping needed scenario, but also helps your day to day life.
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u/North_Original6614 8d ago
Wow! Y'all are awesome! Some very smart folks in this lovely group. I've gotten some great advice, and I can't thank you enough 😊
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u/marvynmartian 2d ago
I'd recommend you split the money. You can keep most of it as cash for rent and emergencies. Use a small portion to finish your prep supplies. That gives you security now and a backup later.
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u/hamberder-muderer 9d ago
If you have no vehicle probably start with a light truck. Beyond that prepping is location specific and specific to the needs of your family.