Are You Financially Prepared For an Emergency?
Are You Financially Prepared For an Emergency?
Are You Financially Prepared For an Emergency?
By Dennis Snyder
A little planning now can help you handle a natural disaster or other emergency. With all the disasters 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.
Very few, however, consider the need to be prepared for a financial emergency in their plans. From keeping an evacuation box with important documents to setting up an account with emergency funds, preparing now can be the difference between financial security and financial crisis.
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.
Understand what types of losses your renters or homeowners insurance covers. Ask your insurance agent or financial planner about additional coverage for floods, earthquakes, home offices and big-ticket items. Keep copies of your policies in a safe place along with your other important papers.
I like to keep at least $500 in cash at home in a good hiding place where I can get to it quickly in case of a sudden emergency. Don’t keep the money in large bills but it should be in small denominations for easier use.
Keep a list of important emergency contacts, including direct family members, doctors, medical facilities, numbers for your bank, insurance agent and company, lawyer and financial planner/advisor. Credit card 1-800 numbers can help you quickly retrieve account information.
The last but by no means the least make sure you have a funded emergency savings account. This account should be separate from any other account and contain enough money to cover at least three to six months of living expenses. This type of account will lift a heavy burden from your shoulders should an emergency occur.
Follow these guidelines to ensure you and your family are protected financially as well as physically. If you would like to learn more on how to gain control of your finances all the time then head on over to the report at Money Management Made Easy. You can Get control over your money!
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Even though I do not get near the credit card offers that I was getting before the economy tanked I still have one too many credit cards that can screw up my debt free life in and instant. I like to think that I am above using that card regardless of how bad I want that thing-a-ma-jig. But then I wake up and that thing-a-ma-jig is hanging in the closet or is in my tackle box. Learning to live on less in order to build our emergency fund up is a mind-set we must get into and stay into at least until we have three to six months of total living expenses set in our emergency only fund.
Families are learning to live on less money by taking control over their spending. It is one of those things we must learn to do because of the soaring prices and lower wages. We are seeing lower wages since the economy has taken a dive because men and women are either being laid off, their companies closing altogether, or slowing down so much that hours are being cut back. Overtime is a thing to be remembered and does not appear to be coming back into fashion any time soon.
