January 5, 2012 in Finance
If MF Global doesn’t think it is real money, if Anonymous is hacking websites and swiping credit card info to demonstrate the financial system is a fraud, what should the average person, just trying to make a living, do about handling money?
I am changing my definition of abundance. It is no longer about creating wealth. It is about maintaining sustenance.
When possible, I am disentangling myself from relationships with banks, government, and investment groups. I recognize that bank accounts with debit cards are necessary for today’s economy. However, I am keeping a minimal amount of operational funds in the bank.
I’m watching debit card and credit card accounts for charges I didn’t make and inquiring about anything questionable.
I’m planning how to operate without my current bank accounts.
I’m thinking about what is valuable in a sustenance economy. Food, water, utilities, and marketable skills are the priority.
I’m no longer focusing on acquiring assets.
I’m accepting that I will work at something the rest of my life. I’m not thinking about retirement. I’m thinking about how I can be useful to those around me.
Why am I doing this?
I have seen, read, and heard numerous reports from numerous sources that indicate a new economic system is on the horizon.
For much of December, I wrote about hidden gold and an ancient trust worth trillions of dollars. I continue to hear stories about the resources available that could be used for this system.
I’ve seen enough evidence that I believe it is prudent to plan accordingly.
The transition, as all transitions are, will be tumultuous.
I don’t recommend panicking.
I recommend preparing.
If history is any indication, financial transitions usually involve the freezing of bank accounts. After the transition, you may or may not be able to access those funds, especially if those banks close.
Government insurance may or may not be available for these accounts.
No one knows for sure.
For ten years, I’ve recommended clients pull money from the stock market and put it into something real. Today, I make that recommendation with greater urgency.
If you have debts, continue to make the minimum monthly payments. If the debt is for something that can be taken away, like a car or house, you may want to evaluate the tax consequences and see if it makes sense to pull your retirement funds to pay off the debt.
Of course, a new financial system may eradicate your retirement accounts, investment accounts, and debt. It may also restructure the tax system.
In other words, all of the rules of the financial game may change significantly.
All of this uncertainty means that, in the end, it will come down to sustenance, another word for survival.
This is why I am changing my definition of abundance. It is no longer about creating wealth. It is about maintaining sustenance.
I’m optimistic the new financial system will be a large improvement over today’s system once we get there. Getting there will require careful navigation through times more uncertain than anything we have ever faced in our lifetime because the rules may change. In fact, they may change several times.
My change in the definition of abundance has helped me resolve the issue I wrote about on New Year’s Day. I now know what I would do with one hundred million dollars. I’ll tell you that tomorrow.