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Managing Money Info
-Financial
Strategies
Dealing with:
-Financial Emergencies
-Money
Issues Children & Credit:
-Allowances
-Teaching
Kids Credit Saving Tips:
-Saving Money
-Savings/Investing Calculator
-Trimming Expenditures
-Cut Grocery Store Costs
-Avoid
Wasting
Budgeting:
-Why
You Should Budget
-Developing a
Plan
-Mistakes to Avoid
-Money
Spending Challenge
General:
-Checking Accounts Money
-Credit Help
-Taxes
-Checking
Accounts
Mortgages
Auto Loans
Personal Loans
Credit Reports
Debt Consolidation
Credit Cards
-Home
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PREPARING FOR FINANCIAL EMERGENCIES
Are you prepared for a financial disaster? A
financial disaster can be anything from an unanticipated
medical bill, a loss of job and/or a death in the
family. Below are some simple tips that will help
prepare you for such an emergency.
Savings account
Develop enough money in savings so that at least two
months worth of expenses are available in case of
emergency. This money will help pay bills in case you
get sick or lose your job. The following expenses should
be considered when calculating how much to save:
- Housing payments (mortgage or rent)
- Car loans or leases
- Utilities (electric, gas, water)
- Phone bills (including cell phones)
- Food
- All insurances
- Children school tuition
Saving money is simple. Putting a small amount from your
checking or paycheck every month into a savings account
will help accumulate funds quickly. Also, you'll earn
interest on the money in your savings.
Credit cards
Having an emergency credit card, with a high limit, is
always a good idea. A credit card is an affordable
alternative to spending money from savings. Examples of
such emergencies is booking a hotel, renting a car,
making a long distance phone call from a payphone. Learn
more about some
great credit card offers.
Emergency documents
Always store extra copies of important documents in
case your home is every damaged, your wallet is stolen,
or you lose the originals. You should either keep the
extra documents with a relative or better yet, in a
safety deposit box. Examples of important documents to
keep include:
- Mortgage paperwork
- Car loan and ownership information
- Copies in insurance certificates
- Medical records
- Birth certificates
- Legal documents and wills
- Driver’s license and passport
- Important phone numbers and contacts
- Emergency money
Know all of your available options
It is crucial that you understand all of the
resources, policies and options available to you in the
even of an emergency. Thoroughly go over your insurance
policies to know exactly what will be covered. In
addition, find out what your employer’s policies are
about taking time off and borrowing money from your
401(k). Know how much money you would receive if you
were laid off from your job. Try and determine ways you
can reduce your expenses or borrow money if needed.
You should contact your creditors immediately if you are
in a financial situation that is not allowing you to pay
your bills. Most lenders will allow you to skip and/or
reduce your payments for small duration of time in case
of an emergency.
Plan for future expenses
It is possible to predict a financial crisis. For
example, you can estimate what it is going to cost to
make repairs to your car every year. Also, calculate
what you intend on spending on
Christmas shopping this
year.
Basically, go over all of your extra, non-essential
spending for the year. Also, keep records of all of your
current and past emergency financial obligations.
Evaluation and planning ahead for extra expenses will
help you avoid falling into a financial emergency.
In conclusion....
Financial preparedness can help you
deal with
monetary emergencies in the future. The information
above should help you in your
financial planning. If you have any
questions, please
contact us. |
