When a person gives advice, they should make every effort to make it good advice. That is particularly true if the person giving the advice is paid to do so.
I recently read a quote from a Certified Financial Planner (CFP) that was so uninformed and ill-conceived as to be a plausible case for legal action. This CFP recommended that $100-$200 should be kept at home for emergencies that may be caused by weather-related power outages. “Enough to buy a few gallons of gas and make a few tips to delivery personnel.” Okay, to be fair that may be enough if it is your house, or your immediate neighborhood that is without power because that only lasts for a few hours or perhaps a day or two. But, when you are dealing with floods, tornados, hurricanes, and other area-wide outages that is very bad advice.
We were without power for two weeks once due to a major ice storm, and more recently 6 weeks due to a Cat 5 hurricane.
Here is the reality:
- You can’t buy gas. Gas stations need power to pump gas.
- There will be no deliveries so you needn’t worry about money to tip.
- If you have an electric car it is useless.
- Your tap will not produce water as the water plant has no power to operate.
- Your house will not be one of the first back up and running. Hospitals, emergency services, nursing homes, and government buildings will be a much higher priority than your house.
A few grocery stores and drug stores will be operating during daylight hours out of tents in their parking lots. These and any other merchants or services that may be functional will take cash only.
Banks and ATM machines and credit card machines will not be open or functioning. So, any economic transaction will have to be with cash. What is the right amount of cash to keep on hand? There is no set amount that fits all situations. It depends on many factors, but enough cash to handle essentials like food, water, and drugs for a month or more is needed. How many of these items you keep stocked at all times is a major factor in deciding the amount of cash to keep handy. In any case, a couple of hundred dollars is not the right amount.
Great article Ken, and just goes to show what things we all need to think about. No matter who we are
Thanks, Lynn.
Ken.
Great article. It always amazes me that when the storm warnings go out the first things to leave the grocery shelves is Water and Bread. Having been through a few hurricanes here in Florida and several major snow storms and floods from having lived on the lake in upstate NY our priorities start with getting gassed up in case we have to evacuate, gas for the generator and enough money to get us through at least 10days to two weeks.
I always have at least three cases of water that is kept for those occasions and stocked up with can goods that won’t spoil.
Of course there is always a few that procrastinate and wait till the last moment when the water and bread is gone from the shelves.
Great article and you hit the high points right on the head.
On more thing BEER and adult beverages is also part of my survival mode!!!!
Semper Fi
Thanks, Tom. I will never understand why so many people fail to recognize the reality that emergencies can happen to any location and plan accordingly.
Your article Ken explains what happens in your community when the basic utilities (water, gas, electricity, etc.) are not on line during a disaster.
I would also add the lack of 911 emergency services (police, fire, paramedics) that would be overwhelmed during a sustained period of time. You and your neighbors would be on their own and hopefully, unite for self preservation. Communications may also be a problem since cell towers will be overtaxed or down,
Lots of things to think about and to adequately prepare for. Proper food, water, shelter, heat source, medications, transportation, communication, radio, batteries, and lastly firearms and ammunition when civilized behavior breaks down.
A healthy sense of paranoia can be a good thing when it comes to protecting yourself and your loved ones.
Having worked the Rodney King riots gave me a personal perspective.