Avoid Threats to Your Funds By Creating a Financial Emergency Plan

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Avoid Threats to Your Funds By Creating a Financial Emergency Plan
Avoid Threats to Your Funds By Creating a Financial Emergency Plan

Chance 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. If you don’t have a plan set, create one so you can avoid threats to your funds.

Open an Emergency Savings Account

Many people have a generic savings account that they use for unexpected expenses. It is ideal to open a second savings account that is only used for true emergencies. Put as much into it as you can so you have a hefty amount saved up when the time comes that it’s needed.

Obtain Insurance

You don’t want to be stuck paying for home repairs on your own when a disaster strikes. Make sure to obtain insurance so you can at least have part of the expenses covered when something bad happens. Look into what your home insurance policy entails and see exactly what events get covered to ensure it’s 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.

TEST

Create an Inventory of Your Possessions

It’s hard for insurance companies to know what possessions you lost during a disaster, if you didn’t have any record of what you owned. Create an inventory of your possessions that you can show them if ever necessary. Start by writing down all of your significant possessions, including televisions, laptops, phones, stereos, appliances, and even clothes. Once your list is complete, take pictures of everything you mentioned to prove they were, in fact, in your home.
Numerous things can be a threat to your funds, including intruders, natural disasters, and more. Have an emergency financial plan ready so you can tackle anything that comes your way.