As tax time approaches, many of us are getting our financial documents in order for the April 15th deadline, just two months from now. We’re collecting our receipts and organizing our deductions, making sure that we have all of the necessary information to paint a complete picture for our annual returns.
This got me to thinking about a scenario that many of may face in the coming months.
Let’s say that a close friend of yours, one that you have trying to convince to begin prepping for several years now, has finally realized the wisdom of your advice. He’s a typical guy with a wife and two kids. He owes $100,000 on his home mortgage and $10,000 on one of his two vehicles: a 2-year old mini-van; his 5-year old small truck is finally paid off. He has a little debt on credit cards, but nothing too unmanageable. Like I said, he’s a typical guy.
Your friend recognizes that he is woefully underprepared for even the most subtle of emergencies. He has a small first aid kit in the guest bathroom, a single-shot .22 calibre rifle from his youth that hasn’t been fired in 10 years, and about a week’s worth of groceries in the cabinet.
Needless to say, he’s a little overwhelmed and even panicked about his lack of preparedness.
After he completes this year’s Form 1040, he’ll receive $1,000 back from the federal government. He wants to spend it all on prepping supplies. He comes to you for advice.
Question: What should he do or buy with the $1,000?
We’d like to hear what you’d tell your friend. Please share your thoughts in the comments below and we’ll post the advice we’d give in a few days.