Our blog post the other day discussed frugal living. Readers might be interested in Alpha Strategy: The Ultimate Plan for Financial Self-Defense for the Small Investor, a great free ebook that explains in detail how to prepare for uncertain economic times such as those we live in. Living frugally makes it more likely you’ll achieve your dreams.
“This book is probably the most informative book on inflation (and how to prepare for it) than any other book available. It is written with the layman in mind. It is only 99 pages long and available in PDF form.
The book was written by John A. Pugsley in 1980. In 1981, it was on the New York Times bestseller list for about nine weeks. It contains some of the same material covered by Peter Schiff in his 2007 and 2009 “Crash Proof” series.
If you could care less about the history of inflation, the fractional-reserve banking system, and myths and facts about the causes of inflation, and you want to go directly to the investment strategies, skip to page 59, where Pugsley talks about the solution.”
Read more at the source: Goins Report
Free PDF: The Alpha Strategy
Note: pare the list down to just the most important necessities and then the expense of stocking up on supplies is far more reasonable.
Use this idea as part of a larger financial strategy:
– build a debt free natural home, preferably in an area with minimal taxes and reliable water supply
– develop numerous marketable skills
– grow as much of your own food as possible (for financial as well as health reasons)
– create multiple income streams with good potential for remaining viable during economic downturns
– get a shop or at least a small work area with decent tools where you can make and repair items
– be healthy as possible
– buy and trade local
– sell off unnecessary items and put money towards items listed above
– network with like-minded individuals who seek positive solutions
Great list in that comment.
I’ll suggest a few items to add to that list.
– Learn about native plants that grow in the wild areas around you. Learn which ones have edible seeds, nuts, leaves, fruits, roots. Turn that fun relaxing walk with your dog into daily food gathering sessions in wild areas that you don’t have to weed, water, plant, or till.
– Cook for yourself. It saves money, and you’ll eat healthier (if you cook healthy food), which saves money on health care.
– Don’t drive unless it is necessary. Walk and Bicycle to run as many errands as possible. Most people can commute to their job via Bicycle if they just put forth the effort to get into shape. When you do make a trip into town or a big city, ask your neighbors if they need something. See if you can save them a trip. When you do that consistently whenever you go, they will tend to start asking you the same thing before they make a similar trip. That will save you time and money, and you’ll develop better friendships that will pay off in ways you cannot anticipate.
– Turn off the TV for cripes sake. Better yet, cancel your cable/satellite subscription and sell your TV. Entertain yourself in a manner that makes you a better person, such as reading books, gardening, learning to play a musical instrument, training your dog, woodworking, metal working, pottery, sewing, dancing, fishing, hunting, canoeing, cheering at the local little league games, playing recreational team sports like slow pitch softball, rec basketball, volleyball, bowling. Visit local hospitals and nursing homes. Tutor local children on their homework. Volunteer for a charity of your choice. Take up horseshoes, archery, ham radio, yoga, and/or any one of thousands of other pastimes.
The point is to find those special niches in your life that have special meaning for you. Create purposes for your life that go beyond mere survival and sitting on your butt in front of a glowing screen. Contribute something of yourself to your friends and neighbors. You’ll be amazed at the dividends that will return.
– Trade with your neighbors. If you have extra veggies from your garden, extra salvaged materials, or extra anything, offer it in trade for items you may need. That trading can/should include offering a helping hand so that less hired help is required by everyone. For example, anybody building an earthbag house that doesn’t make friends with their neighbor that has a tractor with a front-end loader is a fool. Anyone that has their own tractor with a loader and doesn’t offer to help their neighbor is also a fool. When a few minutes of your time on a tractor can save your neighbor hours or days of work, you’ll be repaid many times over when they get the chance.
– Work toward energy independence. Set a long term goal that you will not have to pay for any electricity, heating, cooking, cooling, or any other form of energy. The prices for these commodities is only going to keep going up. Start by looking for ways to reduce the amount of energy you use and need. Start by downsizing. Don’t try to live in a huge house with space that you don’t need. Don’t drive a huge SUV when you can get by on something a lot smaller. Develop sensible habits like turning things off that you aren’t using, adding insulation where appropriate, keeping gaskets, seals, and weatherstripping in good repair. Only use efficient appliances, or better yet, design your own and build them yourself. (Like a heat pipe refrigerator that needs no artificial energy input to keep food cold.) Then build your own energy system, whether it be solar, wind, wood, biogas, biodiesel, or… a combination of all of those and more. Imagine yourself retiring in a home you built yourself completely powered by energy systems you built yourself. Since you built it all, you will already know how to repair/maintain it all. That will be true freedom. Freedom to enjoy life to the fullest.
Excellent suggestions. Thanks for adding to the list. Energy independence is particularly important. The amount of money spent on energy is huge. Slash energy expenses and you’ll have all that money for something else.
Hint: watch for some awesome alternative energy videos in the very near future. (I found the videos yesterday and your comments reminded me of them.) At first you may think there’s no way an average person could build their energy systems. Oh yes you can. Stay tuned.
I hope one of them is a Hugh Piggott style DIY axial flux wind turbine electric generator.
http://www.youtube.com/user/scoraigwind
Hugh is the godfather of modern efficient homemade electric wind turbines. Very smart guy. Designs that anyone can build.
Hint: sawdust