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By Teri Silver Disasters can happen at any time, whether it's a fire, earthquake, serious weather event, or someone accidentally running their car into your front picture window. Even losing your job can create a dent in your otherwise well-oiled financial machine. Preparing for the unexpected doesn't have to take a lot of money but it does take a well-established game plan. Bottom line, if you're not prepared for the worst, that's when something bad will happen. Finding affordable ways to prepare for the unexpected depends on where you live. Rural areas have different needs than cities or towns. Preparing for and responding to emergencies may include caring for pets and farm animals. City dwellers usually have more options for buying things when the need arises. Here are some ways to be ready for the unexpected. Cash Box The world may be going digital these days but cash currency is still a valuable commodity to have on hand. If you want to keep it close by, get a strong fireproof, waterproof box or safe with a combination lock. (Key locks are useful, if you don’t lose the keys!). Keep the combination (or keys) in a place only you and a trusted friend or family member knows about. Add a few dollars each week to the strongbox. Safe deposit boxes at banks and other financial institutions are available for a yearly rental fee (the amount depends on the size of the safe boxes). Keeping cash, important documents, and valuables in a separate, secure location is a good way to safeguard your safety net. Financial Preparedness In addition to a safe deposit box, having unused money stashed away is another way to be financially prepared for an emergency. The FEMA Emergency Financial First Aid Kit (EFFAK) has lists to help homeowners and apartment dwellers prepare their medical information, financial and legal documents, and household contacts in case of emergency. Setting up a separate bank account for emergencies helps one's peace of mind by knowing there's a back-up plan. But where does the “extra” money come from? Controlling Debt Budgeting expenses comes in two parts: the necessities and the wants. Determine your income against the outgo. Expenses include mortgage (or rent), food, insurance, gasoline, utilities, clothing, and bills. Control intangible debt by paying for things in cash, paying off credit cards, and eating out less often. Emergency Planning Even when we least expect it, a disaster can happen. To prepare for a tropical storm or hurricane, put an emergency response plan into place and practice "disaster drills". Also, know what to do and where to go during severe weather events, like tornados, winter storms, thunderstorms, hailstorms, earthquakes, firestorms, and floods. Review homeowners' (and renters') insurance to be sure everything that should be covered is, in fact, covered. Emergency Stash Every home needs a backup plan for when severe weather strikes. The 'dollar stores' have affordable items to keep in your safety spot. Stock up on these items. 'Affordability' is a relative term when it comes to being ready for an unexpected event. But the best way to handle that unwelcome surprise is to have a backup plan and some extra cash. Pretending that this stuff “never happens to me” is fine — until it actually does. Teri Silver is a journalist and outdoor enthusiast. She and her husband live on 5 acres with a vast lawn, three gardens, a farm, a pond, many trees, and a lot of yard work! The best parts of the year are summer and fall when home-grown veggies are on the dinner table. |
