Make Today ‘Day One,’ Not ‘One Day’

September is National Preparedness Month; a friendly reminder to prepare for everything Mother Nature can throw your way. Whether it’s hurricane season, a tornado, fire, flood, or other natural disaster, being prepared can help you minimize the financial chaos that follows. The key to success is thinking ahead and having your affairs in order. Get started with these four tips:

1. Build an emergency fund. When an emergency strikes, it’s great to have an emergency fund to help cover unexpected costs. Water, flashlights, a generator, or evacuation travel can require some extra cash. Experts recommend having a minimum of $1,000 for emergencies while striving to save three to six months of living expenses. Here are a few tips to build your emergency fund.
2. Safeguard your critical documents. Gather essential documents that are not readily accessible when needed or can’t be easily replaced. Store them in a fireproof box, take photos with your mobile phone, scan them to a portable media device, or save them to the cloud. It’s wise to back up your computers and phones regularly. Federal Emergency Management Agency’s (FEMA) Emergency Financial First Aid Kit(EFFAK) is a great resource to organize your financial life.
3. Develop an emergency plan. Have a primary and backup plan, so your family knows where to meet and how to communicate following a natural disaster. An emergency plan can save time, money, and stress. Be sure to download government resources and local maps to your mobile device if cellular service is disrupted. Consider including other trusted families nearby in your contingency plans.
4. Insure your stuff. Review your auto and property insurance to make sure they provide the right amount of protection based on your needs and location. Speak with your insurer to learn about your coverages and identify gaps if you need help.

While it’s best to prepare before Mother Nature strikes, being ready to respond quickly afterward can be crucial for safety and minimizing damage. If you need financial assistance following a natural disaster, remember that military relief societies are there to offer support in times of need.

The USAA Educational Foundation is a nonprofit, tax-exempt IRS 501(c)(3) and cannot endorse or promote any commercial supplier, product, or service. The content of this blog is intended for information purposes only and does not constitute legal, tax, or financial advice.