Are You Financially Prepared For An Emergency?
A little planning now can help you handle a natural disaster or other emergency. With all the disaster that have hit over the last few years such as, hurricanes, tsunamis, earthquakes and other natural disaster many people have focused on their need to be prepared in case of an emergency.
It would appear that very few people ever consider preparing for financial emergencies. Or if they do consider it that is about as far as they get since they never put any action to their considering. Being financially prepared will help us through any type of disaster we might be forced to face.
Create a household inventory for items of significant value and locate originals of important financial and family documents. Store original documents in waterproof bags in a safe deposit box or durable “evacuation box” and photocopies in a safe place. Use a CD to back up key documents on your computer. If practical, store copies with friends or relatives who live outside the area.
Make sure that you completely understand what your insurance will cover in case of emergencies. These are important papers that need to be stored safely. It can get pretty tough trying to figure out what is next in the midst of or right after a horrific disaster. It is much easier when you have all your ducks in a row.
Since we really never know what can hit us and how fast it can come upon us I like to keep a few hundred dollars in small bills hidden away for quick access. Let’s face it if the power is out the ATM’s won’t be working and we may actually need to buy something with cash.
Keep a couple of lists with all your important numbers on them in safe places that you can get to. Include people like your doctor and family members so you can contact them in case of emergencies. Include your insurance company/agent and your credit card numbers in case you need to quickly retrieve account information.
Perhaps the most important thing you can do to prepare for an emergency if to have a savings account for emergencies. You should have at a minimum a 3-6 months living expenses savings account fully funded for not only those natural disasters that may occur but also those financial emergencies that will pop up from time to time. An emergency fund of this type will relieve the pressure that comes should an emergency arise.
In order to ensure that you family is protected both financially and physically make sure that you follow these guidelines. You can also learn more about controlling your financial situation by getting the report Money Management Made Easy.