Dilbert’s One-Page Guide to Everything Financial

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The story goes that Scott Adams wanted to publish this as a one-page book, but he couldn’t find a publisher to do it. In fact, he is quoted as saying that “if God materialized on earth and wrote the secret of the universe on one page, he wouldn’t be able to find a publisher” either on CBS Marketwatch. Instead, he weaved it into a Dilbert cartoon-based book called Dilbert and the Way of the Weasels (368 pages).

Everything else you may want to do with your money is a bad idea compared to what’s on my one-page summary. You want an annuity? It’s worse. You want a whole life insurance policy? It’s worse. You want to invest in individual stocks? It’s worse. You want a managed mutual fund instead of an index fund? It’s worse. I could go on, but you get the point.

Overall, the book is pretty funny if you like Dilbert and understand the corporate hell that he lives in. Otherwise, without further ado, here is Dilbert’s One-Page Guide to Everything Financial:

  1. Make a will.
  2. Pay off your credit cards.
  3. Get term life insurance if you have a family to support.
  4. Fund your 401k to the maximum.
  5. Fund your IRA to the maximum.
  6. Buy a house if you want to live in a house and can afford it.
  7. Put six months worth of expenses in a money-market account.
  8. Take whatever money is left over and invest 70% in a stock index fund and 30% in a bond fund through any discount broker and never touch it until retirement.
  9. If any of this confuses you, or you have something special going on (retirement, college planning, tax issues), hire a fee-based financial planner, not one who charges a percentage of your portfolio.

From Vanguard article:

Does Adams live by his financial rules? For the most part he does. Adams said he’s allergic to debt and makes a habit of saving half of his income.

“I found that people who had massive credit card debt were asking me how they could invest in stocks, or how they could borrow money from their credit card to invest in stocks,” the cartoonist recalled.

However, Adams said he no longer follows his rule to invest 70% in a stock index fund and 30% in a bond fund. The best-selling author says he invests primarily in municipal bonds today, which are tax-exempt, and also owns land in his adopted home state of California.

If I had his amount of money, I’d probably be investing only in muni bonds as well!

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Weekend Reading: What If Warren Buffet Smoked Pot?

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Okay, so I couldn’t think of a good title… but think about it after reading these helpful articles. 😉 I’m including some excerpts I like, but I would highly recommend reading each piece in its entirety. Good stuff.

Warren Buffett: Buy American. I Am.

So … I’ve been buying American stocks. This is my personal account I’m talking about, in which I previously owned nothing but United States government bonds. (This description leaves aside my Berkshire Hathaway holdings, which are all committed to philanthropy.) If prices keep looking attractive, my non-Berkshire net worth will soon be 100 percent in United States equities.

Why?

A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful.

Of course, I don’t remember him ever writing an Op-Ed saying “Be 100% Bonds, I am”, or “Hedge Against The Dollar, I Am”. However, I do agree that if you are going to buy stocks, now is a fine time to buy. I am maintaining my asset allocation, and I’m not even doing it grudgingly – I’m doing it happily.

Hedge Fund Manager Andrew Lahde’s Goodbye Letter

I will no longer manage money for other people or institutions. I have enough of my own wealth to manage. Some people, who think they have arrived at a reasonable estimate of my net worth, might be surprised that I would call it quits with such a small war chest. That is fine; I am content with my rewards. Moreover, I will let others try to amass nine, ten or eleven figure net worths. Meanwhile, their lives suck. Appointments back to back, booked solid for the next three months, they look forward to their two week vacation in January during which they will likely be glued to their Blackberries or other such devices. What is the point? They will all be forgotten in fifty years anyway. Steve Balmer, Steven Cohen, and Larry Ellison will all be forgotten. I do not understand the legacy thing. Nearly everyone will be forgotten. Give up on leaving your mark. Throw the Blackberry away and enjoy life.

This guy bet big on the collapse on the subprime mortgage market and got great returns the last few years for his small hedge fund. He brings an interesting point of what drives people to super-duper-richness. I would probably do the same as Lahde, but others would keep reaching for more. Buffett’s new biography The Snowball also goes in the family life sacrifices/choices he made. The end part about hemp… is there a hidden correlation?

Bogle & Bodie On Wise Diversification

Jack Bogle: I am a believer in diversification. You buy index funds for stocks, and your bond portion should equal your age. This is how I invest, so I know how little it’s hurt me to have a substantial position in U.S. bonds. I’m in half Treasuries, half corporates.

[…]In recent years, international investing has had a higher correlation with the U.S. market than was traditional. If you invest internationally, you have to invest in foreign companies not as diversifiers but wealth producers. If you like international, get in gradually, maybe with 20% of your portfolio, half in developing markets and half in emerging markets. Europe looks a lot like us, so it’s at least possible you might get a better return out of emerging markets. I don’t invest internationally myself.

Zvi Bodie: […] And then there is insuring or hedging. That’s when you’ve got a safe asset and to my mind that is Treasury Inflation-Protected Securities, or TIPS. One way to protect yourself is to combine a diversified portfolio of risky assets with the safe asset. We teach students that you only need two mutual funds—the risky assets and the safe asset—to generate the entire set of risk-and-reward trade-offs.

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Where Does Money Really Come From?

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Given current events, it might be good idea for the average citizen to better understand our modern banking system. Reader Rick submitted this following video by Paul Grignon which tries to explains things in an accessible way using animation. It is about 45 minutes long, so you need to commit a chunk of time to watch it, but I thought it was worth it.

The first part explains our fractional-reserve banking system very well. One might think that for every $1 we put in a bank account, that is $1 that can be lent as a mortgage loan. In actuality, it is more like $100 that can be lent. (Wonder why banks want our money so bad?) So where is most of the world’s money coming from? In effect, it is created by the act of borrowing itself. Money is created by debt!

However, in the end, it draws some controversial conclusions. The creator contends that this system is unsustainable, and because banks control the credit in our society, they effectively control the society. Thus, it would be better if the government took over such transactions. I have been unable to find a good rebuttal by a financial professional or economist online, so please drop a comment if you have.

(Best viewed in full-screen mode. Takes a while to start.)

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Follow-Ups: WaMu 5% CD, Chest Freezers Everywhere

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High-Yield Bank CD
Washington Mutual has brought back their 5% APY 12-month CD for another week, which had previously dipped to 4.5% APY. If this fits your needs, don’t miss it this time around.

Chest Freezers
Apparently, I was not alone in doing cost/benefit analysis on an extra chest freezer, as this AP article shows:

Once relegated to the dank corners of the basement, freezers are being embraced again by shoppers who are stashing bulk-sized purchases of meats, fruits and vegetables there as they work to combat rising food prices. Across the country, shoppers bought more than 1.1 million freezers during the first six months of the year — up more than 7 percent from the same period last year, according to research firm NPD Group.

That rings up to nearly $400 million in freezer sales — a staggering figure compared to the rest of the home appliance sector, where industry data shows shipments are down nearly 8 percent. And, experts said, it’s a trend that’s expected to continue at least through much of next year as penny-pinching shoppers buy in bulk to take advantage of deals or bundle grocery shopping trips to conserve gas. […]

About half of all U.S. households already have a chest or upright freezer, separate from the refrigerator-freezer combo that’s a kitchen stalwart, according to industry statistics. [Source]

I also had no idea 50% of households already had an extra freezer. We still haven’t bought one yet ourselves; I’ve been in kind of an anti-stuff mode recently.

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Links: Chasing Shrinking Potato Peelers Edition

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Here are some recent links from fellow bloggers that made my cursor pause…

Grad Money Matters ponders when to stop chasing money? How do we know at what point when we need to slow down? Good question.

Wisebread offers up some cheap things to do in San Francisco. I always like to see other people’s views of an area I am familiar with; everyone always has different ideas. The comments are good too.

The Consumerist tracks the continuing trail of destruction by the Grocery Shrink Ray. AllFinancialMatters laments the shrinking beer bottles of certain brands. Or are they 1/3 liter bottles? Or are 1/3 liter bottles a convenient metric-system-abusing excuse? Financial Ramblings says we get what the market decides. I believe, with consumer awareness, the balance can be shifted.

Get Rich Slowly talks about the best salesman in the world, whose path to riches lay in selling $5 potato peelers on the streets of New York City. Interesting story.

No Credit Needed offers an illustrated guide to debt reduction. I like pictures.

The Simple Dollar explains why they decided to finally merge their married finances.

Christian PF makes his own toothpaste. I must admit, this is something I’ve never thought of doing myself. I do drive my wife crazy by squeezing the last atom out of our current tubes, though…

Almost Frugal shows us how to cut a little boy’s hair. Amazingly enough, no bowls were involved! As a kid, I was happy with a buzz cut for many years. I’ve never been big on hair…

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned.

MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.


Assorted Links: Eating Doritos While Doing The ChaCha

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Lots of links to share, so I thought I’d do the shotgun approach to blogging tonight.

What The World Eats, Part 1. This is a cool piece that shows what 12 different families from around the world eat in a week, and how much it costs. In Time magazine, based on the book Hungry Planet, via Bogleheads.

Speaking of eating… what about the incredible shrinking Doritos bag “Big companies are protecting profits with subtle repackaging, putting a little less into boxes of cereal, containers of ice cream, rolls of paper towels and other products. Guess who’s paying for it.” One thing I’ve also noticed is that means generic packages often hold more product despite the outside box being the same size. This makes store brands an even better buy these situations.

ChaCha is a service where you can call or SMS text a question and a human will text you back the answer. Currently free. You can also apply to be one of those humans (“Guides”) and get 10-20 cents per query answered. Thanks to Frank, who says you can earn a flexible $6-8/hr. Use his e-mail frank.heilig@gmail.com as referrer when signing up.

A related site is Mahalo Greenhouse, where you get paid to research and write up results for the Mahalo search engine. Pay rates unknown, and you only get paid if accepted.

AishCafe is paying college students $250 to take an online course to learn more about Judaism. Interesting idea. Seems like a decent time commitment, must go through interviews.

Frugal Freedom has shared her early retirement budget, and it’s only $600 per month! I’m worried that her healthcare costs are too low, but she is living in an paid-off RV so her housing costs are minimal.

Is tipping really so hard? The Freakonomics blog notices that “out of 59 apps in the finance section [of the iPhone App website], at least 15 of them help you calculate a restaurant tip.” Seriously, what’s wrong with using the built-in calculator?

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned.

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Focusing On Your Circle of Financial Influence

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In an effort at personal development, I am currently reading the long-time bestseller The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change by Stephen R. Covey. I got the book years ago from some sort of corporate team-building workshop but never finished reading it.

I think that many ideas within the book have applications to personal finance. The first habit is to Be Proactive. This is not the same as simply going out and doing many things – that’s being active. Instead, think of proactive as the opposite of reactive. One should consciously choose how they respond to external events. Even being angry is a choice. “Nobody can hurt your feelings unless you let them.”

Circle of Concern vs. Circle of Influence
The Circle of Concern is everything we might be concerned with – from world peace to lunchtime. The Circle of Influence is what we can actually do something about.

Where do you think you should focus your energy? Consider these “if only” thoughts:

  • If only I didn’t lose my job due to downsizing.
  • If only gas wasn’t so expensive.
  • If only my house didn’t plummet in value.
  • If only I had a great pension plan like my parents had.
  • If only someone could teach me how to invest.

Getting sucked into such thoughts is to dwell on the Circle of Concern; It is a waste of energy and won’t help you at all. The only thing that can help you is to focus on your Circle of Influence. Spend as much time each day on finding a new job as you spent working at your old one. Examine your habits and consume less. Borrow some books on investing. Move forward with a business idea. Then, you might be able to expand your Circle of Influence:

I know, it’s a bit cheesy. But if you listen to yourself carefully, I think you might catch some of these “if only” thoughts popping into your mind. I know I do. There is a very applicable prayer from Alcoholics Anonymous:

God, grant me the serenity to accept the things I cannot change, courage to change the things I can, and the wisdom to know the difference.

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned.

MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.


Microsoft Live CashBack Promotion: 70% Off Magazines and More

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone.

Microsoft’s Live Search engine now has a cashback system – the idea is that you can compare products and prices using their search engine, and then buy through them and get cashback. This is similar to existing cashback portals like eBates ($10 sign-up bonus), but they add in the price comparison component. Like the rest, you have to wait 60-90 days for your rebates (in case you make a return).

Every time you make a qualifying purchase, we’ll send you an email to confirm your Live Search cashback savings. Usually 60 days after your purchase (although this time period may vary for some stores), and when your cashback account reaches a balance of at least $5, you can claim your cold, hard cash.

They are currently having a Back-to-School promotion that is giving nearly double cash-back percentages at several stores (sorted alphabetically). Examples are

  • 70% back at Magazines.com.
  • 38% back at ShoeMall, 36% back at FootLocker and Eastbay, and 32% back at Shoes.com
  • 12% back at Barnes and Noble
  • 5.5% back at NewEgg (electronics)

At 70% off, you can get an entire year’s subscription to The Economist for under $30. I know that several readers like this magazine, which is very hard to find at a discount. Or you can just renew the rest of your magazine subscriptions on the cheap. Combining coupons may void the cashback, according to the terms and conditions.

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned.

MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.


Links: Dark Knight Edition

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone.

Saw Batman today (the free movie tickets worked!). I’m not much of a graphic novel guy, but it turned out to be one of the best movies I’ve seen all year. Side thought: Is it really impressive that a movie broke a box-office revenue record when even a matinee costs $8 now? If the goal is to compare popularity, shouldn’t they just count the number of tickets sold instead? Here are some other personal finance articles from my weekend reading:

The Finance Buff has a guide on buying TIPS directly from the government at auction.

J of BudgetsAreSexy bought himself a frugal Cadillac. Oxymoron? This reminded me that I still want an old Jeep Wrangler. If I view the Jeep as one step closer to being a beach bum, does that mean J secretly wants to be a pimp in his DeVille? 😉

Punny Money asks (using hilarious stick figures) if one should buy or rent a tuxedo. For a long time, a small part of my beach bum dream lifestyle was to die having never worn a tuxedo. I managed to avoid having to wear one at my wedding. Alas, I had to wear one last year while being a groomsman for a friend (all your fault, Joe!). But never shall I buy a tuxedo!

JLP of AllFinancialMatters shares his opinions on brown-bagging lunch as well, and his readers chime in.

As SUVs everywhere are being traded in, The Digerati Life explores the MPG illusion. Saving money on gas by switching cars may not as beneficial as you think.

Lazy Man offers to sell his endorsement at Prosper Lending, and starts a lively debate. Given the losses that many other lenders have been experiencing, I’m quite happy with the estimated 10% ROI on my tiny portfolio.

Boston Gal remarks that you know the economy is bad when the Wall Street Journal pushes libraries. From her commenter Sean of Financial Ramblings – “If CNBC starts running specials on clipping coupons, Colbert will have to raise the threat level.” Ha!

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned.

MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.


Links: 1/3rd Of My Blogroll Edition

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone.

Here are some links from sites in my blogroll, not in the alphabetical order of their blogs, but their names. I tried (very unsuccessfully) to make something clever related to the actual titles when possible. My apologies to the English language.

  • 2million decided to open up a bank account in China. How much is $2 million RMB?
  • Boston Gal discovers that fake grass is expensive. Yes it is, but could it possible end up more eco-friendly than our current water-thirsty and fertilizer-eating lawns?
  • Canadian Capitalist points out that passive investing let you live your life.
  • Dong gets Asked: Is the Wii all that? I don’t think so, but I’m never been much of a video game person. It is good for socializing though.
  • Emily Brandon interviews folks to find out their stories of unplanned retirements.
  • Grant and his Corner Office poses an interesting question about airlines – why are many airlines willing to operate at a loss for so long? All I know is that $15 for the first bag is stupid. If fuel costs are the issue – will we see people being charged by the pound next?
  • IndexFundFan shares his May 2008 Portfolio return. So many asset classes!
  • J.D. shares another way to Get Rich Slowly by subscribing to Craigslist Search Results to get fast updates on new listings. I still search for cheap Jeep Wranglers and beater Toyota Trucks daily when I take breaks, even though I’m not allowing myself to buy one right now.
  • Jim Bargaineered his way into an insurance policy for his engagement ring.
  • Michael Muses about Money when he shares a video of a guy trashing his house because it’s in foreclosure. That’ll show the world…
  • Patrick asks which shift do you prefer to work for your cash money?
  • Single Ma’s Fabulousless shines through when she talks about living life on her terms and doing what she has to do to get what she wants.
  • Tricia continues Blogging Away Debt even though sometimes it may feel like a roller coaster.
My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned.

MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.


Applying the Concept of Kaizen To Personal Finance

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone.

Kaizen is a a Japanese philosophy that focuses on continuous, gradual improvements in all areas of life. A popular example is that of Toyota Motors, where any worker can stop the entire factory line if they see an abnormality and worker suggestions are welcomed and regularly implemented. The role of kaizen in Toyota’s success is discussed in detail within this New Yorker article “Open Secret of Success“:

…Toyota’s approach: defining innovation as an incremental process, in which the goal is not to make huge, sudden leaps but, rather, to make things better on a daily basis. […] Most of these ideas are small—making parts on a shelf easier to reach, say—and not all of them work. But cumulatively, every day, Toyota knows a little more, and does things a little better, than it did the day before.

The parallels to personal finance are relatively obvious but I think it is still easy to underestimate the power of such small, continuous, improvements.

Starting a New Business
Many of us may have ideas about starting up a new business (side or full-time), or even consider a career change. But the task can be daunting, so we put it off. But taking small steps towards such a goal are relatively easy. Spend a little time regularly making contacts, read and learn new skills while sitting at a cafe, or simply making your fuzzy daydreams a little sharper. It doesn’t even have to be daily.

Changing Your Spending Habits
Habits are by definition almost subconscious behaviors, and very hard to break. This New York Times article “Can You Become a Creature of New Habits?” explores why using kaizen instead may be better suited to changing our habits as opposed to other more aggressive methods:

“Whenever we initiate change, even a positive one, we activate fear in our emotional brain,” Ms. Ryan notes in her book. “If the fear is big enough, the fight-or-flight response will go off and we’ll run from what we’re trying to do. The small steps in kaizen don’t set off fight or flight, but rather keep us in the thinking brain, where we have access to our creativity and playfulness.”

If you want to start a budget, why not tracking your spending in just one category, like dining out?

Taking it another step further, instead of just saying “I need to eat out less”, why not ask why you order out so much. For us, often times it is simply because we are tired and there is nothing easy to cook in the fridge. So I have started to keep a better stocked pantry and also make a regular schedule where I buy a small amount of “standard” fresh vegetables which are easy to incorporate. Each time I find a good recipe that uses only what is in my pantry, I write it down, so I slowly accumulate our own custom lazy-proof cookbook.

Kaizen Is All About You
These are just a few examples, and is kind of how I like to think of this blog. There are so many complex topics that are impossible to learn all at once, from investing to insurance to taxes. Every day I read and skim a lot of information, in the hopes of gleaming something a little useful that can help me get a little closer to leaving the rat race. It may just seem like little nothings, but when you add it all up together I know it has made a huge difference in our financial lives. But what may strike a chord in me might not apply to others, so it’s all about taking what works for you and applying it.

So remember, as long as you learn or implement something a little new each day, you should be happy!

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned.

MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.


Simple, Easy, Frugal Ideas For Emergency Preparedness

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June 1st is the start of Hurricane season for the East Coast, it’s always Earthquake season on the West Coast, and it’s near peak season for Tornadoes in many states, so in general it’s a good time in general to check up on your disaster plans. While there are several places like FEMA and the Red Cross that will have extensive lists of what you should have, but really, do you keep 3 days worth of food in your house, your car, and at work? Okay, I’m sure some of you do, but I don’t.

Instead, I liked reading about simple and easy things you can do that will still make a big difference if you are out of power and other services for several days. Most of these things are free, or involve slight changes to your buying patterns on stuff you would have bought anyways.

Food: Stockpile and Rotate Your Pantry
I wonder if it is necessary to buy 20 cans of beans or military MREs and stick them in a box somewhere. Chances are that most of us could live off of what we have in our cabinets for a least a few days. To improve on that, just be aware and buy extra of certain staples when they happen to be on sale. Canned soups, vegetables, fruits, peanut butter. Cereal, crackers, pasta, rice. Don’t let them just sit there though, buy more when needed and then eat the items before they get stale. I just put an empty duffel bag in the pantry with a manual can opener inside so I could throw some stuff in there and run if really needed. If the power does go out and you stay at home, remember to eat the perishable food in the refrigerator first, followed by the food in the freezer, so that you can saved the canned goods for last.

Water
If you buy bottled water, keep an extra case, and rotate as needed by the expiration dates so that the water stays fresh. You can also store tap water in old 2-liter soda bottles which are sanitized first with a bit of chlorine bleach. This should cost essentially nothing. During an actual emergency, another trick is to save and use the water held in the tank of your hot water heater.

Cooking and Heating: Keep Your Propane Tank Halfway Full
If you have a propane grill, you can use it for cooking when without power or natural gas. Do not use your grill indoors, though, to avoid carbon monoxide poisoning. If you live in an area where it gets especially cold, there are indoor propane heaters with built-in sensors that will let you heat your house safely. Propane is a lot easier to store safely than gasoline!

Transportation: Keep Your Gas Tank At Least 1/4 Full
So, where is the safest place to store large quantities of gasoline in an emergency? Your car! So stop seeing how close you can get to “E” before filling up. Besides, if you really need to go somewhere in an emergency, you need to go, not stop by at the nearest gas station first. This way you’ll be a good 50-100 miles away before having to stop. Also, having lots of gas means that you can…

Power: Use Your Car Engine For Electricity
I think a great tool to have around is a cheap power inverter (available for $30 including shipping) that will let you plug in lights for your house, a radio/TV/laptop, or just charge your cell phone using your running car. Just plug into your cigarette adapter (lower watts) or connect to your car batter (higher watts). Comes in mighty useful for road trips as well.

Everything Else: Cash
No, it won’t be able to earn any interest, but having a decent amount cash handy can be very helpful. Stores may not take credit cards when there is a blackout due to fraud, which I found when trying to buy some things at my local hardware store during a blackout. Coincidentally, there were having a special on those hand-crank radio/flashlight combos so I picked one up. 🙂 I’m not sure how much is a good amount to have in the house safebox. Between $100-$500?

This list isn’t exhaustive, just what I could think up, so please share your own ideas in the comments.

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