How to Prepare Your Finances for an Emergency

June 7th, 2021 by
How to prepare your finances for an emergency

Photo by Denniz Futalan / Pexels

At a moment’s notice, a disaster such as a flood, earthquake, hurricane, or a strong wind storm can not only wreak havoc on your emotions and personal property but also on your finances. 

The last thing you want to do is to worry about where the paperwork for your banking accounts, homeowners or renters insurance, and family and pet’s health information is.

The Consumer Financial Protection Bureau, a federal agency designed to help consumers with their economic lives and make rules more effective, has some suggestions on how to prepare for an emergency.

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The United States Government’s Federal Emergency Management Agency (FEMA) has developed an Emergency Financial Aid Kit that is a very detailed document that you can download and fill out now before a disaster strikes. This form will greatly assist you when it comes to filing for claims or re-establishing your life after the disaster. 

To obtain this document, go to FEMA’s website here and you will find several different variations of the same form. 

Choose the language you desire and complete the form with your information. You can simply print the form and handwrite your information or use the fillable form provided in the list. There is also a large print version for those that need it. 

From there, either print out hard copies of your document or save them on a flash drive. 

Next, consider where they will be secure and safe. You want this information to be accessible to you in the event of a disaster. For paper copies, it is suggested that you make a copy of the document and you store the original and copy in separate locations. 

If you decide to save your information digitally, you should password protect your information.  

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No matter what format you put your information in you should store the document in a waterproof and fireproof container.

Another way to protect your finances is to completely understand the extent of your insurance coverage in case of a disaster. Renters, homeowners, and even car insurance may not be enough or may not cover natural disasters. 

In such cases, you may have to look into other types of insurance such as floods or earthquakes.

Bottom Line: Spend a few hours to gather your information to create your Emergency Financial First Aid Kit from FEMA. Then, make sure that you are covered with the appropriate insurance policies. All of this should prepare you to weather out any type of disaster.

 

 


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