Today I want to take the time to talk a little about something I have not. The title says it all, I think, with the exception of defining what a “Personal SHTF” is because, well, it’s personal. In today’s economy, I think that most people might define a personal SHTF as a job loss. it seems to be the norm, and it is the one that comes to mind to me when I think of personal SHTF situations. Conversely, it doesn’t have to be a job loss to be a personal SHTF. I have a buddy out in AZ that was laid off and rehired within 48 hours at a reduced rate and hours. Yeah, they laid him off instead of asking him to reduce hours and wages to rehire him. Pretty classless if you ask me, but he lives in a small town and had VERY FEW employment options. Had they asked he may have just taken the cut in hours and pay. My point though, is that a cut in hours or a cut in pay could be just as financially devastating as losing the job if you cannot make your your bills or feed your family.
I cite these because I made no secret recently that money is tight recently. So tight in fact, that a job loss or other serious issue would devastate me financially and put me in my own personal SHTF situation. Thank goodness that I don’t really feel like this is the case at the moment, but having several months worth of preps, of course makes me feel better, and urge everyone to take steps, even small steps to bulk up their preps, even if they only spend $5.00 — $10.00 a week on some additional preps that might help to ease the pain in a bad situation.
Going out on a limb, I suppose you can also say that this is a sort of a bug in situation as well, as you (when I say you, I also mean me) may not want to do much traveling and work on projects at home more, as well as look for a better job, spend more time with your family, garden more, etc.
In addition to what I mention above, I am mentally reviewing my own finances, and am going to be putting together a 2011 budget shortly in an excel spreadsheet. I have considered my financial fitness recently and decided it is much like my physical fitness, in need of further improvement. I am going to make a mental contract with myself not do deviate from that budget in 2011 because I need to save more money and put more cash into retirement investments. Not to mention I have some debt I want to pay off. With luck I can put some money back in the bank in 2011 and give myself a padding of savings to work from if there is an emergency situation.
When I get the MS Excel budget template created, I will put it up for download so that you can use it yourselves if you wish.
What is your personal SHTF situation?