When emergencies hit we need to have a plan covering how we will handle different situations. There have been many natural disasters that have hit and of recent days and months economic disasters that have washed ashore as well. While we may know our evacuation route if a hurricane hits most people are not financially prepared for any kind of 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.
One of the first things to do in emergency preparation is to create an inventory of personal belongings of any value. This would include any financial and family papers and documents. Get them into a safe fire proof and water proof box and if you can store them with friends or family who do not reside in your area. By the way, make sure that you back up your computer files and get them on a CD for safe keeping.
Check with your insurance agent and check your policies to make sure you understand what your coverage is on such things as floods, fire, earthquakes etc. Make sure that you have your policies safely stored for future access.
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.
I also like to keep a list of important phone numbers in my wallet and my wife’s purse so that we can get in touch with our family members, doctors, insurance agents and even credit card people. With the high tech stuff most of us carry we can get this information logged into our cell phones as well.
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.