Financial Preparedness: Be Sure to Save for an Emergency
Posted at 12:30 p.m.
Personal financial planning helps families prepare for emergencies. Take time to increase your level of disaster preparedness and especially your financial preparedness.
Saving can be a tall order for some, but in an emergency, a lack of financial preparedness could leave you and your family with fewer options for immediate relief.
Here are a few tips to keep in mind:
- Set aside money in an emergency savings fund for initial out-of-pocket costs including gas, food and hotel accommodations to provide safety, comfort and distance during a disaster.
- Keep cash on hand in the event of power outage when electronic payments are not available. It is important to have small bills on hand because ATM’s and credit cards may not work during a disaster when you need to purchase necessary supplies, fuel or food.
- Complete an Emergency Financial First Aid Kit and digitizing important documents (e.g. medical records, ID, insurance, etc.) in case they are needed following a disaster.
- Consider the cost of insurance deductibles. Obtain property (homeowners or renters), health, and life insurance if you do not have them. Review existing policies for the amount and extent of coverage to ensure that what you have in place is what is required for you and your family for all possible hazards.
Be ready for the unexpected. Create or add to your emergency savings and encourage others (family, friends, neighbors and colleagues) to save for a disaster too.
Being financially prepared should be incorporated in your personal preparedness plan.