Greetings fellow investors!
A decade I go I put together an ‘INCH’ Bag (INCH = ‘I’m Not Coming Home’, also known as a Bug Out Bag). It it’s a bag we can grab in an emergency, with essential items for a post-apocalyptic world. Perhaps a nuclear winter after a nuclear war, or massive earth quake or tidal wave or asteroid destroys essential infrastructure. No power, no internet, no phone networks, no water, no gas, no ATMs, no banks, no shops, no credit cards, no fresh food, no transport, possibly no sunlight for months, no laws, or at least no police to enforce them.
We have all seen this scenario in movies, but will it happen in my lifetime? I used to think probably not, but best to be prepared anyway. Sh*t happens!
I first started thinking about surviving social breakdown in the depths of the 1990-1 recession (the last real recession we had in Oz). My main thought was swapping my impractical car (2-door convertible) for a more sensible, versatile off-roader. The crisis passed and I soon forgot about it.
A decade later I came across ‘Doomsday Prepper’ shows on late night TV and I started an INCH Bag. I never wrote about it for fear of sounding too alarmist and pessimistic, given the remoteness of the risk.
But the world has changed. In the past week Ai hacks hijacked supermarket freezers across Europe causing food shortages. It seems only a matter of time before large-scale hacks (ai or human) bring down banks, transport systems, utilities, etc. Even the purveyors of ai bots warn their own creations could run amok and wipe out the human race! Last week the UK government advised citizens to stockpile fresh food and water just in case.
Closer to home, in the past year our house had the water cut off for a couple of days without warning. Twice. Likewise some random power outages. Our house is under some very large eucalyptus trees that are notorious for branches falling randomly. We have had some close calls, but if a tree or large branch crashes through the roof, we’ll need to get out fast. Looking after ailing parents, I learned the importance of having a ‘hospital bag’ ready to grab at the door (clothes, medicines, critical docs like EPOA, ACD, etc).
The big risk is no longer just natural disasters. It's humans (and/or ai bots built and let loose by humans).
What’s in an INCH Bag? There are plenty of online sites and forums on this. Essentially two types of items:
Durables – eg clothes, toiletries, first-aid, tools, crockery, cutlery, can opener, knives, matches, lighters, gas stove, radio, torches, solar panels, candles, camping gear, fishing gear, compass, cash, sewing kit, water filters, water bottles, note books, pens, phone charger, power banks, loo rolls, etc.
Perishables (replaced regularly) – eg water, dried/tinned food, UHT milk, water purifiers, medicines, batteries, sunscreen, butane, medications, fuel, etc.
It’s a trade-off between completeness and size / weight / portability. A ‘perfect’ INCH bag is useless if it’s too heavy to pick up and carry. Start with what you feel are the most likely essentials for your circumstances. It’s iterative – you’ll always be finding smaller, lighter versions of items.
How to start? Rather than spending months planning the ‘perfect’ list, start small with a few basics. If an emergency hits, you’ll be glad you started.
Aside from fresh water, food, candles, matches, torches, what about cash? Do you have enough cash (notes) to survive for a while if your bank gets hacked or suddenly freezes your accounts (as has happened to a few friends of mine recently)?
No need to panic. Just start thinking and planning calmly.
Hope for the best, prepare for the worst!
‘Till next time – happy investing and stay healthy!