Creating a Financial Emergency Plan
(FinancialHealth.net) – Chances are, you have an emergency plan set in case a fire takes over, a natural disaster strikes, or another disastrous situation takes place. You know where to go, who to call, and what to take. While these plans are important, so is creating a financial emergency plan to ensure you have cash when needed.
Open an Emergency Savings Account
Many people have a savings account that they use for unexpected, emergency expenses. It is ideal to open a savings account that is only used for true emergencies and try to have a hefty amount saved up for when, and if the time should ever come that it’s needed.
You don’t want to be stuck paying for home repairs on your own if a disaster strikes. Make sure to obtain insurance so you can at least have part of the expenses covered if something bad should happen. It’s a good idea to check with your insurance agent to see what events are covered through your home insurance policy to ensure it covers the amount you need.
Keep Two Copies of All Financial Documents
If a disaster strikes and you have all your financial records in your home at the time, they could be destroyed. It would make it difficult for you to make an insurance claim or otherwise handle the situation. Keep a copy of your documents with your disaster supply kit and another one in a safety deposit box at the bank. You could even leave a third copy with someone you trust so you know there is always a copy available somewhere.
Create an Inventory of Your Possessions
To make things easier for you and your insurance, just in case a disaster should ever occur, create an inventory of your possessions. It’s hard for insurance companies to know what possessions you have lost during a disaster, if you didn’t have any record of what you owned.
Start by writing down all of your significant possessions, including televisions, laptops, phones, stereos, appliances, antiques, and even clothes. Once your list is complete, take pictures of everything you mentioned to prove they were, in fact, in your home. As a safeguard keep this list, and pictures, in your safety deposit box at the bank.
Disastrous situations can happen at anytime. Having an emergency financial plan ready means you can tackle anything that comes your way.
~Here’s to Your Financial Health!
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