Accumulate Non-Digital Value

Part of safeguarding yourself against scenarios that may arise based on political whims, such as levies on bank balances or identity theft related money transfers, is to store physical value. Gold has long been the “gold standard” in storing value, and is a great investment item, additionally you can consider investing in silver and even copper or other metals if you have sufficient storage space and means to protect the storage space. That gets me to the next item on the list, the means to protect your items and your self – be it through rigorous physical training or purchasing a home defense weapon. The latter can also be a store of value – one will find that such items do not depreciate quickly.

Why Save?

What is the point of amassing fortune, why save at all? One word – independence. You don’t want to be a slave to credit companies or banks, you want to be free to do what you want when without having to take it from the government or wait for it in a huge line. Conversely, you should not make wealth accumulation the top priority of your life, it is only a tool to do what you want to do and if you have a family the rewards are multiplied. Want to go on an international vacation with your whole family? This will cost you – for example if you want to stay in reasonably accommodations for two weeks in England from the US you should be willing to spend $20,000 to enjoy your time there and not have to share a restroom and live like a hippy. It is important through all this to realize that having money is not the purpose of having money – unless of course your name starts with Ebenezer.

Don’t Invest In Chinese Stocks – Unless You Know Exactly What You’re Doing

The Chinese economy is the second largest in the world, and has been growing at an impressive rate for the past 20 years. However, China has in the past few years taken measures (like those of the US that led to economic bubbles) that will eventually pop. Also, China’s one child policy has for the first time since the 1960′s resulted in a shrinking labor force and a top heavy (age-wise) population that will only get worse as long as the law is in place.

That means that you will see a large reversal in their stock market prices once the pop happens, the problem is timing the pop. As I am a fan of safe investing and treating money with care instead of gambling (an exorbitant amount), this is an area of investing I will steer clear of.

In regards to investing in US Stocks, you also need to know what you’re doing and stick away from low market capitalization stocks or ones that sound fishy such as exploratory mining stocks or small shipping companies – check that your market capitalization is at least $1 Billion USD.

First Step

You cannot protect your wealth if you have no wealth to protect. The first step in the process is to build up an emergency fund to keep you alive if the rainy day should happen. I’d recommend around $5,000 for an individual, $8,000 for a couple and $10,000 or more for a family with kids – you can also use an online calculator and add $1,000 to this result. Keep this in liquid assets. Along with the liquid assets you should have a months worth supply of water and food in case the unexpected should happen in your area.