Dear Financial Survivalist

Dear Financial Survivalist, 

I recently found out that my wife and I will be receiving a good chunk of money from some inheritance. Our plan is to zero out credit card debt and student loans right away. However, we will still be left with about 30K once those obligations are taken care of. 

I'm wondering what you where you would suggest that we invest extra money, and why?

I'm leaning towards real estate because I know that cash is REALLY king right now in real estate, and because I like real estate. But we're also thinking about investing in some physical precious metals, and our own physical preps like food storage (you can't eat money or even gold if a giant collapse happens). 

We are both in our early 30's with no kids and a lot of life ahead of us. We both have Roth IRAs set up that we have been contributing to. I'm curious to know what your suggestions are.

Thanks in advance,

-A proactive prepper 


Proactive Prepper,

Thank you for the letter. The answer to your question is different for every situation. Before anyone begins traditional "investing," including an IRA/401k, they should build a strong "Financial Survival Kit." It sounds like you have the right idea considering food storage and eliminating bad debt are part of a good financial survival kit. The last item in a Financial Survival kit is "Essential Product." In my opinion this would be a good start for investing. Read more about a Financial Survival Kit here.

I strongly believe you should "Invest in Yourself." The risk of an investment is based on your knowledge or ignorance of that investment. For instance, an expert art dealer would probably be able to choose better art than I. If I tried to invest in art, it would be a stab in the dark. If you are an expert in coins, for you, investing in coins will not be as risky as investing in art. So, what a person should invest in depends on the person.

I love real estate. If you do it right, real estate is a win win. Not only is it a great investment but it is an excellent hedge against inflation and economic uncertainty. Read how to use Real Estate to Protect Against Inflation. If you are interested in real estate, but are not an expert, become one! My favorite book to get someone started is Wall Street Journal. Complete Real-Estate Investing Guidebook.

Gold has been used for centuries to protect against economic uncertainty and inflation. However, I have several issues with gold. It has little intrinsic value other than it's scarcity. It is super popular and as it becomes more popular will become more volatile. Plus, in the event of total economic collapse, bread will be just as valuable as gold. That doesn't mean gold is a bad investment. Just make sure you are buying it for the right reasons. Read Should I Buy Gold.

I hope I have answered your questions, and at least given a good place to get started. Remember, there are three types of people in this world: Those who things happen too, those that watch things happen, and those that make things happen. Make it happen.

Be Smart & Thrive.
Financial Survivalist