Wigan/Wikimedia Commons; Nielsen/TT News Agency/AFP via Getty Images
Moneywise and Yahoo Finance LLC may earn commission or income by linking to the following content.
With geopolitical tensions escalating around the world, one European country is urging its citizens to prepare for potential disruptions by keeping enough cash at home.
On Wednesday, the Riksbank – Sweden’s central bank – published a new proposal aimed at strengthening public preparedness in the event of a payment system shutdown (1).
“The public is an important part of Sweden’s overall defense and is central to strengthening national preparedness in the payments market.” Rexbank said. “Access to a variety of payment methods improves people’s ability to pay in the event of temporary disruptions, crises and, in the worst case, war.”
Sweden is one of the world’s most cashless societies, with only one in 10 purchases made using physical currency (2). This reliance on digital payments could create losses if networks go down.
To reduce this risk, the central bank advises households to keep cash at home so that they can still buy food, medicine and other essentials during disruptions (3).
“The Riksbank recommends that all households keep SEK 1,000 (US$109) in cash at home per adult. This amount should be considered as a standard and is intended to cover a week’s worth of purchases,” the central bank said. The central bank said, adding that cash should be kept in different denominations.
Officials are also recommending that families bring cards from different payment networks so they can make purchases if a system goes down.
The central bank encouraged more people to use cash “regularly” to ensure the country’s cash infrastructure remains functional.
Sweden is not alone in issuing such a directive. According to Bloomberg, the central banks of Finland and Norway have also advised citizens to keep cash on hand as part of preparedness efforts (3).
This warning comes at a time when geopolitical tensions have increased, with the ongoing war between Russia and Ukraine and a new war involving the US, Israel and Iran adding to geopolitical uncertainty.
Beyond domestic preparedness, major conflicts can also have significant effects on household wealth – changing the value of money and financial markets.
While central banks urge households to keep some cash on hand for emergencies, the value of money itself can change dramatically during times of war.
Investment legend Warren Buffett once offered a clear warning about this.
“The one thing you can be pretty sure of is that if we go into a major war, the value of the currency is going to go down — it’s happened in virtually every war that I’m aware of,” Buffett told CNBC in 2014, the last time Russia invaded Ukraine (4).
“The last thing you want to do is hold onto money during a fight.”
Buffett’s warning illustrates an important point: major conflicts often fuel inflation. Wars increase government spending, borrowing, and money printing, while production of consumer goods may decrease and supply chains may be disrupted—all of which can raise prices.
Ray Dalio, the founder of the world’s largest hedge fund, Bridgewater Associates, expressed a similar opinion in a recent post on X, citing a time-tested hedge in the war: gold.
“To invest, sell all debt and buy gold because wars are financed by borrowing and printing money, which devalues debt and money and because there is a justified willingness to accept credit,” Dalio said.
Gold has long been seen as the ultimate safe haven. It cannot be printed out of thin air like fiat money and because it is not tied to any single currency or economy, investors often appreciate its value during periods of economic turmoil or geopolitical uncertainty.
This is not the first time Dalio has highlighted the importance of gold. Last year, he told CNBC that “people don’t have enough gold in their portfolios,” adding that “when times are bad, gold is a very effective diversifier.”
Over the past 12 months, the price of gold has increased by more than 70%.
One way to invest in gold that also provides significant tax benefits is to open a gold IRA with Preferred Gold.
Gold IRAs allow investors to hold physical gold or gold-related assets in a retirement account, thus combining the tax benefits of an IRA with the protective benefits of investing in gold, making it an option for those looking to help protect their retirement funds against economic uncertainty.
When you make a qualifying purchase with Priority Gold, you can get up to $10,000 worth of precious metals for free.
Read more: I’m almost 50 and have no retirement savings. Is it too late to catch up?
Read more: Non-millionaires can now invest in this $1B private real estate fund starting at just $10
While Buffett has warned that wars can destroy the value of currencies, he also offered advice on which assets are best protected during conflicts.
“You might own a farm, you might own an apartment house, you might want to own securities,” he said.
To illustrate how stocks can perform during conflict, Buffett points to World War II (4).
“During World War II, the stock market advanced — the stock market advances over time. American businesses will be worth more money, the dollar will be worth less, so that money won’t buy you as much,” he said.
“But you’ll be much better off owning productive assets over the next 50 years than you will be holding pieces of paper.”
Buffett has long taken a straightforward approach to putting these principles into practice for everyday investors—no stock-picking skills required.
“In my opinion, for most people, the best thing to do is own an S&P 500 index fund,” he famously said (6). This approach exposes investors to America’s largest 500 companies across a wide range of industries, providing instant diversification without the need for constant monitoring or active management.
The beauty of this approach is its accessibility – anyone, regardless of wealth, can benefit. Even small amounts can grow over time with tools like Acorns, an app that automatically invests your spare change.
Signing up for Acorns takes just minutes: Link your cards and Acorns will withdraw every purchase to the nearest dollar, investing the difference – your spare change – in a diversified portfolio.
With Acorns, you can invest in an S&P 500 ETF with as little as $5 – and if you sign up with Recurring Investments today, Acorns will add a $20 bonus to help you start your investment journey.
In a 2014 interview, Buffett named “apartment houses” as one of the assets you want to own in times of war. In fact, he repeatedly cited real estate as a prime example of a productive, income-producing asset.
In 2022, Buffett said that if you offered him “1% of all the apartment buildings in the country” for $25 billion, he would “write you a check” (7).
why? Because no matter what happens in the world, people still need a place to live and apartments can generate constant rental income.
Real estate also provides a natural hedge against inflation. When inflation rises, property values also rise, reflecting higher costs of materials, labor and land. At the same time, rental income rises, providing landlords with an income stream that keeps pace with inflation.
Of course, you don’t need $25 billion—or even to buy a single property—to invest in real estate. Crowdfunding platforms like Arrival offer an easy way to get into this income-producing asset class.
Backed by world-class investors like Jeff Bezos, Ariad allows you to invest in rental housing shares with as little as $100 – all without the hassle of mowing lawns, fixing plumbing or managing difficult tenants.
The process is simple: search a curated selection of homes that have been evaluated for their appreciation and income potential. Once you find a property you like, select the number of shares you want to buy and then sit back when you start receiving positive rental income distributions from your investment.
For a limited time, when you open an account and add $1,000 or more, Arrival will credit your account with a 1% match.
Another option is Lightstone DIRECT, which offers qualified investors access to prime quality multifamily and industrial real estate – with a minimum investment of $100,000.
Founded in 1986 by David Lichtenstein, Lightstone Group is one of the largest private equity investment firms in the United States, with more than $12 billion in assets under management.
Over nearly four decades, their team has delivered strong, risk-adjusted performance across multiple market cycles – including a 27.6% historical net IRR and a 2.54x historical net equity multiple on investments since 2004.
With Lightstone DIRECT, you get access to the same multi-family and industrial transactions that Lightstone pursues with its capital.
Here’s the kicker: Lightstone invests at least 20% of its capital in each deal — about four times the industry average. With skin in the game, the company ensures that its profits are directly aligned with its investors.
At the end of the day, everyone’s financial situation is different—from income levels and investment goals to debt obligations and risk tolerance—which means the best move for someone else may not be the best move for you.
If you’re not sure where to start, it might be a good time to contact a financial advisor through Advisor.com.
Advisor.com is an online platform that matches you with vetted financial advisors who fit your specific needs. They can help you develop a strategy for your unique financial situation, whether you’re looking to protect your wealth, generate income or plan for long-term financial security.
Once you’re matched with a consultant, you can book a free consultation with no obligation to hire.
Join 250,000+ readers and be the first to get the best Moneywise stories and exclusive interviews – insightful insights curated and delivered weekly. Join now.
We rely only on verified sources and reliable third-party reporting. For details, see ourInstitutional Ethics and Guidelines.
