It seems that there has been an abundance of natural disasters over the past few years. Some of those who have been hit have begun to get prepared in case of future emergencies they may face. Unfortunately, those of us who have yet to be hit only read about it in the news and we do not think it will ever happen to us. Oh, we may have a candle or two put aside in case of a power outage but we never think of being financially prepared for an emergency.
Each and every one of us should be constantly preparing for the next financial emergency that will hit. We should have our financial papers in a safe place and accounts set up with emergency funds. Being financially prepared now can be the difference between security and crisis when it comes to our families and finances.
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.
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.
It is good to keep a small amount of cash hidden away in the house just in case of natural disasters which many times come swiftly. I usually keep between $300 to $500, in small bills, in a safe but easy to get to place.
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.
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.
The above suggestions are imperative if you want to help protect yourself and your family should that emergency come. If you would like more information on financial issues check out the report Money Management Made Easy.
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