Financial preparedness is a big part of emergency preparedness and disaster planning. Becoming financially prepared for an emergency, like a natural disaster, will protect you and your family from long-term loss and heartache. Earlier this week, we gave tips on making a Financial First-Aid Kit. With your kit assembled, you’re ready to plan for long-term emergency financial preparedness.
Check Your Financial Preparedness Score.
There are three questions you should focus on when thinking about being financially prepared for natural disasters:
- Have I saved enough money to pay for expenses after a natural disaster?
- Do I have the right kind of insurance with enough coverage?
- How much will a natural disaster impact my budget and income?
Now, take a moment to think about this. If these three questions have you feeling a little nervous, don’t worry. Think of these three points as a way to check your “Financial Preparedness Score (FPS).” Even if you score a 3 out of 3 (great work!), you should still occasionally revisit these checkpoints. Emergency survival supplies can expire, and your FPS can change with time or a significant life event.
Your Journey to Financial Preparedness Starts Here.
In this three-part financial planning series, we are going to examine these three questions to make sure you are ready for the next disaster.
First, how much money should you save for an emergency? Your emergency money should not be the same as the money you are saving for your retirement. Fully-funded emergency savings will keep you from losing your nest egg when an earthquake or another disaster strikes. If you’re like most people, your savings might fall short of what you’ll need after a disaster.
Read on for part one of this series where we get into the details on why you need an emergency savings fund as part of your earthquake preparation plan: