Just like knowing alerts or building a supply kit, financial wellness is also an important part of emergency preparedness. However, about 4 in 10 Americans said they would not have enough money to cover a $400 emergency expense. National Financial Capability Month serves as a reminder for us to review our financial health.
Follow these tips to prepare financially:
- Start building a rainy day fund by saving a little each month. Pay yourself first—when you get paid—rather than waiting to see what is left over after spending. People with cash on hand can recover faster than those relying on credit.
- Documenting personal property can make insurance claims easier. If you don’t have the right documents, claims could be delayed. Use the checklists in the Emergency Financial First Aid Kit (EFFAK) to see if you’re missing anything.
- Store your records in a safe place and back them up online.
- Encourage your kids to start building good money habits. Saving a little bit at a time helps them be prepared for all kinds of emergencies.
- Homeowners and renters insurance policies do not usually cover flood damage. Talk to your agent. Find out what is covered by your existing policy and learn more about flood insurance at FloodSmart.gov.
Follow #FinancialFuture2019 on social media for more tips!