Friday, March 29, 2013

It CAN Happen Here. Dont Trust Your Bank

Angry Cypriots queued to withdraw money on Thursday as banks reopened for the first time in nearly two weeks under a regime of strict capital controls and with officials bracing for a huge outflow of deposits. In other words they are not allowed to take much money out of the bank.

The Cyprus banking situation is unique and lots of people say it could never happen in a large country like the United States. But it could and we all need to be ready. I am not saying don't use banks and keep all your money under your bed. In this modern world its just not possible for most of us to go without banking. But you can do a few things to protect your self from ending up with no access to your money.

First thing is to keep some cash at home. How much you keep at home is up to you but I keep a months worth of cash.

Use different banks if you can. Don't do all your banking at one bank. One bank could fail and another could not. If you can get yourself an account in a foreign bank its a good idea to spread a little money around. Just make sure its in a big country with good banking regulations. Canada is a good example.

Watch the news. Cyprus has been having problems for a while now. This did not happen over night. People had lots of warning signs that perhaps they might want to get their money out.

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