Are You Financially Prepared for an Emergency?
A little planning now can help you handle a natural disaster or other emergencies.
Many Americans have focused on their need to be prepared in case of an emergency. Very few, however, consider financial preparedness in their plans. From keeping an evacuation box with important documents to set up an account with emergency funds, preparing now can be the difference between financial security and financial crisis.
These simple tips from financial experts at KG Meyer, PC in Nashville, TN, can help anyone prepare financially for a natural disaster:
Conduct a Household Inventory
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. You can also use a cloud storage service such as Microsoft OneNote or Dropbox to store important digital files. Also, if practical, store copies with friends or relatives who live outside the area for physical files. For information on cloud services, visit https://blog.envisionitsolutions.com/dropbox-vs-onedrive-which-is-better-for-my-business.
Know Your Insurance Policies
Understand what types of losses your renter’s or homeowner’s insurance covers. Ask your insurance agent or financial planner about additional coverage for floods, earthquakes, home offices, and big-ticket items, many of which require special riders. Keep copies of your policies in a safe place along with your other important papers. You can also scan these policies and upload them to your cloud service provider for safekeeping.
Keep Cash Accessible
Keep at least $300 in cash at home in a place where you can get to it quickly in case of a sudden evacuation. The money should be in small denominations for easier use. The reason for this is due to power outages that may render ATMs unavailable.
Create and Maintain a List of Emergency Contacts
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. Again, uploaded these to your cloud service for safe and easy retrieval.
Keep an 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. In addition to the $300 in cash, I recommend that this be maintained in either a traditional bank or, if you properly plan, you can utilize an online bank to get a higher interest rate on these funds. The issue is it takes one to two business days to access the funds. For more about the benefits of online banks, visit https://kgmeyerpc.com/online-bank-accounts-2/.
“We’ve learned from the aftermath of recent natural disasters that financial preparedness is not always top of mind,” said Kirk G. Meyer, Registered Financial Consultant and CEO of KG Meyer, PC. “Follow these guidelines to ensure you and your family are protected financially during one of these events.”
