The Financial Side of Preparedness
Emergencies don’t just threaten physical safety—they can devastate finances. Job loss, property damage, and unexpected expenses can compound the stress of any disaster.
Emergency Fund Basics
How Much to Save
- Minimum goal: $1,000 for immediate emergencies
- Standard recommendation: 3-6 months of expenses
- Optimal target: 6-12 months for comprehensive security
Where to Keep It
- High-yield savings account for accessibility
- Portion in cash at home (small bills)
- Consider multiple bank accounts for redundancy
Cash on Hand
Why Physical Cash Matters
- ATMs may be down or empty
- Card readers need power and internet
- Some emergency vendors only accept cash
Recommended Amount
- $200-500 minimum in small bills
- Keep in secure, fireproof location
- Rotate occasionally for freshness
Document Protection
Essential Documents to Secure
- Insurance policies and contact numbers
- Bank and investment account information
- Property deeds and vehicle titles
- Social Security cards and birth certificates
Protection Methods
- Fireproof safe at home
- Bank safe deposit box
- Encrypted digital copies in cloud storage
- Copies with trusted family member out of area
Insurance Considerations
Review Coverage For
- Flood insurance (usually separate from homeowners)
- Earthquake coverage if in prone area
- Business interruption if self-employed
- Adequate liability limits
Documentation for Claims
- Home inventory with photos/video
- Receipts for major purchases
- Before and after photos of damage