Doomsday scenarios have been played out ad infinitum and the world is still intact albeit a little worn out in patches. 9/11, hurricane Katrina, Super storm Sandy, floods, and power outages on a massive scale have disrupted millions of lives within a short span of time before the situation normalized. It is not the inevitability of these catastrophes that is the talking point, the million-dollar question it poses is-are you prepared to handle or face such catastrophes?
Cash is definitely the king in a catastrophe
Following a catastrophe it may take weeks for power to be restored. Our civilization is so dependent on power that everything comes to a grinding halt, even banks and bank ATMs. If you have money “safely” locked up in a bank it will remain there totally inaccessible till power is restored. That is why it pays to stock some cash, especially for the weeks it takes for a situation to normalize and stores to reopen. Food is another commodity that perishes fast in power outages. Keep dry foods, canned foods and potable water in sufficient quantity.
Gold can lead you out of a catastrophe
While ready cash will take care of essentials in the weeks following the emergency, in the ensuing months you will be needing capital for reconstructing or repairing your home or buying a new car. Here your bank balance and deposits and investments will pitch in for you, but having gold is also immensely useful. Like the dollar, gold value also appreciates or depreciates with time and market pressures, but the value of gold as a form of security is extremely high. You can pledge gold in a bank and cash its equity, or you can hold it as collateral for a loan.
Stock up on essential goods
Emergency supplies that you need to stock up include nonperishable food, first aid, burn and accident medicine, blankets, essential clothing, a generator, torch and machine tools for odd jobs. In the aftermath of a catastrophe none of these items may be available, and you need a power source to charge your cell phone or power the fridge.
Keep big ticket loans regular and up to date
Keeping debts paid and up to date helps considerably because even if you are laid off for a month or more you can catch up with payments as soon as the ground situation normalizes. Companies and creditors are less forthcoming with loan modifications where the loan is already in default.
Your skills are your most valuable asset in an emergency
Supposing you are in a situation where your home has suffered irreparable damage, you are cut off from civilization and your main work place and it may take weeks and months to get things moving again. The fact that you happen to be an investment banker may not be of any practical value to you in that crisis. But if you are a wizard at carpentry and you can power your way around many do it yourself jobs, these skills are more likely to save your day. And people will definitely pay you for using that skill.
Setting up an emergency fund
Millions of Americans do not have an emergency fund that can last even three months, and there is no point denying yourself this lifeline just because you suffer a paucity of funds. Grab a cash loan for title. The loan for vehicle title rests on the collateral of your car pink slip. The auto equity loan charges interest at the rate of 25% APR which is highly competitive vis-à-vis the payday loan and pawn loan industry. The car equity loan will help you mobilize more than 60% of your car equity within fifteen minutes of your loan application. The biggest plus point of an auto collateral loan is that you can apply despite a poor credit background. Repayments can also be matched to your existing income. Such a loan can be useful in setting up an emergency fund.