[Homestead] Cash production, was The Piggy Bank is empty

Gene GeRue genegerue at ruralize.com
Mon Sep 27 11:36:39 EDT 2004

>>So from your 83-year-old perspective, what would you do if you were 
>>starting over?
>tvoivozhd---in the present state of my "wisdom", based both on triumphs 
>and defeats, I would do exactly as I am advising my children . . . .

Okay, I have archived your response, but I want more. This thread started 
out with you and James advising against stock investments and then you 
included real estate investments, with which I disagree. My question above 
relates to the investment plan to provide future cash needs, and it still 
requires an answer.

Here is the scenario: Homesteader wannabe buys land, accumulates tools and 
skills, pays off the land, move to the land, builds a shop, builds a house, 
gets the food-production and fuel-production systems in place, accumulating 
more tools and skills along the way.

Now what? If we preclude stock and real estate investment, how has our 
hardworking homesteader ensured a secure supply of money to pay ever-rising 
taxes, keep a car or light truck maintained, fueled, tired and insured, buy 
clothes and replacement appliances and tools, and pay for those utilities 
that cannot be produced, especially as age decreases work capability?

I once sought to see how cheaply I could live at Heartwood and got it down 
to about 700 per month. I found that automotive expense was the most 
difficult to control. Country roads tend to eat tires and air cleaners, for 
instance. Responsible people must have liability insurance. Cars and pickup 
trucks wear out no matter how perfectly maintained. And good homesteads are 
often many miles from the nearest hardware store. Something else I learned 
is that, yes, I could produce most of what I need, but it makes for a long, 
weary day. No trouble sleeping but also no time for reading and taking 
walks along the stream. Except during emergency time, few people I know, 
especially as they get older, want to spend eighteen hours a day doing 
everything by hand.

So my question still stands. After the homestead is set up and humming, if 
stocks and real estate are no good, what's your plan to generate the cash 
to pay for what can only be purchased? If stock and real estate investment 
are shunned, where does one put funds earned earlier to ensure future 
income? And please don't simplify with the home shop scenario; our 
self-reliant homesteader is already working long hours to produce food and 
fuel. Where do the dollars come from to pay the salt grocer and the tax man?

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