I will begin my paper by briefly describing the background which led to this paper, as well as stating my thesis. Next, I will define the term terrorism and explain the difference between it and the associated terms of insurgency and guerrilla warfare. Further, I will briefly go over the history of terrorism and the methods employed by terrorist organizations. After this introductory element, I will proceed to explore how terrorism has been funded in the past and how it is being funded at present. Lastly, I will present an overview of future methods of financing and make a proposal as to how the United States and the rest of the world could possibly disrupt these forms of financing. This paper is not intended to be comprehensive in nature, as this would be too large in scope, but rather use specific examples to illustrate certain methods and uses of terrorist financing