January 20, 2025
Five Items for Your Financial Bugout Bag
Dear Subscriber,
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| By Nilus Mattive |
As I put the finishing touches on my special Safe Money Report forecast issue last week, the Pacific Palisades fire broke out about 100 miles down the coast from my house.
And by now, I’m sure you’ve read some of the painful stories of loss … of people having just minutes to run for their lives … and of the painful rebuilding process that now lies ahead.
It’s a topic that hits home for me.
Just a little over eight years ago, we were forced to evacuate our house here in Santa Barbara because the Thomas Fire started to rage throughout the hills around our town.
It’s amazing how quickly a remote possibility — even one you’re able to insure against — can become an imminent threat.
Indeed, I grew up listening to stories of how my family lost almost everything during the Hurricane Agnes flood of 1972.
Residents rescued by boat following Hurricane Agnes.
Source: NRCC.
Click here to see full-sized image.
They thought the dike was going to hold. Next thing they knew, they were rushing to higher ground with whatever they could grab.
Even if you live far away from forests or rivers, there’s no telling what can happen.
I was in the basement of the World Trade Center when the first plane hit — an event that I never could have anticipated when I got up for work that day.
I talk a lot about safety here. About being prepared. And about having investment hedges in place.
So, let me ask you:
Do you have a plan in place for something like a wildfire, flood or chemical spill?
Insurance is part of that. So is an evacuation plan, including a designated rendezvous spot where you can meet up with friends or family members.
But one thing that many people overlook — and that the stories coming out of Los Angeles emphasize — is having the immediate ability to grab things you absolutely need, should you never be able to return to your house again.
Sure, you’ll hear a lot of people talk about the concept of a “bugout bag” — a pack with water, a first aid kit, a portable solar panel, a weather radio, flashlights, self-defense items and other survival-oriented things.
And I recommend having something like that.
But I also recommend having something else — what I call a …
Financial Bugout Bag
Indeed, for most people and in most situations, this second bugout bag is far more important.
Just think about displaced people from Pacific Palisades. Many of them have access to temporary shelters … food sources … and other daily necessities.
But what if they don’t have their Social Security cards? Or their passports? Or insurance policies, paper bonds or other important financial documents?
It could take months to get all that stuff sorted out.
Now, sure, a fireproof safe is a good first line of defense.
However, I recommend having a bag ready to go inside that safe — one you can grab the minute you need it.
What should you have in it?
I always start with cash.
The amount is up to you.
It could be a couple hundred dollars. It could be thousands.
But I would typically say no more than $10,000 per person in your household.
Why?
That’s the maximum amount you can currently use for any single financial transaction without causing all sorts of reporting triggers.
It’s also the maximum amount you can take into or out of the country without having to make official declarations.
Remember, cash is king in a crisis. ATMs may not be working. Credit card machines might be offline. Good luck paying for things with Bitcoin when your laptop just melted and cell towers are down!
And yes, I like gold and silver. But the same basic criticism applies …
We are not talking about a world-altering apocalypse. We are talking about the more likely scenario of a regional event and the post-crisis week or two that follow.
You won’t be able to give your average person a Morgan dollar and expect them to know (or accept) its worth in silver.
Beyond cash, you will also want to have copies of all your key financial documents and records.
The word “copies” is key here.
Think about account numbers … recent statements that prove balances … personal documents like your Social Security card, marriage certificate, deed, car title and other critical items.
If you happen to have physical stock certificates, paper bonds or other financial instruments, those should obviously go in your bag, too.
Alternatively, you can consider storing some of these things — including the originals — in a safe deposit box.
The ideal would be having electronic scans all organized on a small thumb drive with security encryption. Perhaps two just for redundancy.
You will also definitely want a universal form of ID.
Your driver’s license will probably already be with you, but keep an extra copy.
Same with a passport.
Don’t have a current one? Get to a post office and fill out an application right away. It’s not just a great form of identification … it’s peace of mind that you can legally leave the United States and enter another foreign country on short notice.
From here, there may be other things you have that should go into the bag.
I can’t possibly cover everything in this short article.
However, if you merely do what I’ve outlined so far, you will be more prepared than 95% of the population.
I will say that photos are the other big thing most people wish they were able to grab in the event of a crisis.
So, a portable hard drive with copies of digital photos and/or scans of older prints would be a great addition to your bag.
And again, you should also have a regular bugout bag ready to go, too — one with some energy bars, bottled water and other items.
Whether you’re talking about investing or life, we never know when a crisis will hit.
Therefore, it pays to be prepared for a billow of smoke off in the distance or a knock outside your door in the middle of the night.
Best wishes,
Nilus Mattive
P.S. As you can tell, I take preparedness very seriously. That’s why I want to give you another warning. In fact, Dr. Martin Weiss and I agree, no other modern-day technology has ever posed a greater danger than this. I urge you to watch this video and take the four steps within to prepare for it.
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