The thing about crisis situations is that you never know when to expect them. The only way to cope is by being prepared. Here’s how to prepare your finances to help you make it through challenging times:
- Start saving an emergency fund. The best advice is to have enough set aside to get you through 6 months without income. That’s a challenge but work toward $1,000 then build from there.
- Set aside money for major home repairs. This is especially important if you live in an older home. Get a home inspection done so you can make a list of everything you need to budget for.
- Make sure you’re adequately insured. Savings alone won’t cover major property destruction. Insurance is essential, but regular homeowner policies don’t cover all disasters. For floods, earthquakes, hurricanes, etc., you usually have to buy separate coverage.
- Have an emergency document kit. Keep copies of important documents (as well as some cash and a USB stick of digital documents) in a waterproof, fireproof box. It should contain insurance policies, mortgage or lease information, wills, investment records, driver’s license, government ID, photos of your home and possessions, and real estate documents, including appraisals. The more evidence you have of your property value before a loss occurs, the better.
If you’d like advice from one of our trusted local insurance partners, please call us today!
