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Tips For Being Financially Prepared

April 15, 2019 3 min read

Tips For Being Financially PreparedConcerns about emergency situations can come in all forms. These can range from immediate worries for survival and maintaining comfort with basic needs such as long-term food storage kits and water, but it can also extend to situations where emergencies also impact fiscal solvency. Although no one ever wants to consider a disaster situation, it is important to have a plan, as there are so many variables that can impact ongoing living conditions.

Beyond The Basics

For many household, having emergency kits in the home and in the car, as well as a plan of action, is a basic measure of ensuring preparedness. The problem is that many times, people do not think beyond the immediate situation of the disaster, and consider what will happen once things begin to return to "normal". Unfortunately, there is rarely a true sense of regaining familiarity after a disaster, but attending to long-term as well as immediate disaster concerns can provide a viable solution.

This is really where being financially prepared for any type of emergency situation can become a huge benefit. Along with having funds to rebuild and replace, if necessary, this can also make sure that injuries that may have come from the disaster are also covered. Further, it can be important to remember that in post disaster situations, commerce can also be highly limited, and this can include payment options.

Thinking Forwards

Being financially prepared for any emergency event can involve a number of approaches as well as a number of factors that can impact applicability. However, a combination of these tactics is sure to work for anyone, and can ensure that emergency preparedness extends beyond just the aggravating event.

• Minimize your spending - disposable income is often used in our society, but as the phrase suggests, these are items or services that are truly non-essential. While it is necessary and appropriate to also enjoy life with the occasional treat, consistent overspending can mean that no money is saved. Minimizing of spending can also come from engaging in more sustainable practices for living, including gardening and long-term food storage, since this will also cut everyday costs.

• Make wise expense choices - this relates to the above tactic, but also considers that there will be occasions where larger expenses are needed. In making wise choices, it means that you can still minimize spending even if you have to pay for a large purchase, so long as you weigh the long term value of that expense. This will also often lead to new ways of trimming down on spending.

• Increase your savings - obviously, the above points also contribute to building an actual savings that can be used in case of emergencies. What is very important is that you set strict guidelines as to when and how the money can be used, as this will keep you from just depleting the savings consistently. Along with regular accounts for saved funds, it is also wise to store cash in secret areas in the home, so that it is handy in cases where electronic access is no longer viable. Closed mason jars work best for this, as it creates a relatively airtight and waterproof casing.

• Have profitable skills - as mentioned earlier, in many disaster situations, commerce for the affected areas can take years to resume. In these cases, currency savings could have only a limited application, which makes it wise to have abilities and skills that can generate a secondary stream of revenue. This can also be important for situations where injury during an emergency has impacted ability to work as before.