October 14, 2014
I don’t write articles that scare you into taking action. There are plenty of writers out there who are quite accomplished at that. However, in this case, my intent is to encourage you to take actions that you are already planning to take, and take them sooner rather than later. I’ve been sharing how I’ve been preparing for economic uncertainty and showing you that it’s not that hard. Just take baby steps and get started now.
My PC recently crashed. It would not complete a restart. I hadn’t been doing anything out of the ordinary. It was just running slowly and applications were not functioning properly so I did what I always do when that happens. I restarted the PC. There was no advance warning that this time would be different.
The restart failed with the “blue screen of death.”
At first, I thought I was going to get through it…that I would be able to re-start it a few more times and that it would be fine. Well, I was wrong.
At a certain level, I was almost relieved. I had been having weird problems with my PC and believed that reinstalling the software would resolve those problems. I may have had some viruses or other malware on my PC.
I also thought that I was good to go as far as all of my data. I had been using a feature of Windows 8 called FileHistory to back up my files to an external hard drive. This feature had copied my files over to an external hard-drive. Well…not all of them; just the ones in the folders I told it to copy.
I had been planning to find a good cloud storage provider and had been procrastinating doing the research and setting it up. The reason cloud storage is a better option than copying your data to an external hard-drive is that external hard-drives fail, they can only backup your files when you have the hard-drive attached to your PC, and you must have the hard-drive with you when you need to recover files.
The benefits of cloud storage are that your files are backed up on many servers so there is no single point of failure, your files are backed up each time you make a change to them, and you always have access to the files when you need to recover them as long as you have Internet access.
When my PC crashed, it was only after I re-installed Windows on my PC that I learned I did not have a usable backup plan for my files. I found that it was going to take a long time and a lot of mind-numbing work to restore them all to my PC in a usable form. But by this time, it was too late. Wishful thinking about putting my files out on the cloud didn’t make it possible to do it.
Like a PC crash, in the case of a monetary collapse or hyper-inflation, there are steps you can take to ease recovery, if you take them in advance of the event. Taking the right steps in the case of a monetary collapse or hyper-inflation can preserve your wealth, thereby providing a higher quality of life for you and your family in the aftermath.
Do you own anything real? I consider real estate and precious metals (gold & silver) real. I also consider a profitable business to be real.
Units in a bank account, brokerage account, 401K or IRA can lose their purchasing power very quickly in the event of a monetary collapse or hyper-inflation. In addition, those units can easily be confiscated by a hungry government. In fact, the inflation the US dollar has experienced since 1913 has reduced the purchasing power of your US dollars by 95%. Hungry governments also impose currency controls. They do whatever they can to keep the currency from fleeing the country.
With the crash of my PC, I lost all useful access to my files. I lost all the time it took to try various actions in the hope of accessing my files. I may have completely lost some files forever. After the computer failure, I can’t go backwards in time, but I can prepare for the next catastrophe and do a better job of it than I did last time.
Think about what you could lose if there is a monetary crisis in your country. At the very least, you will have lost a lot of purchasing power to inflation. You may no longer be able to move assets out of the country once the crisis hits. Banks could shutter their doors and severely limit the amount available via ATMs.
Would you have any cash on hand to make it through until the banks re-open? What about leaving the country yourself? Would you have enough cash or other assets on hand to buy a ticket to leave the country? Would you have access to your money once you are out of the country? Where would you go? Would you be able to stay in the country you chose for as long as you wanted? Or would you have to continue to move to different countries, spending more money to do so?
Once the crisis hits, it’s too late to make plans for preserving and accessing your wealth in the aftermath. If you haven’t done so already, please start taking the steps needed to protect your future and the future of your family.
Yours in prosperity,
Sophia Hilton (A Savvy Woman)