You can’t always predict the future or when a calamity will strike. But, you can always prepare for any future disaster. While money alone can’t solve all your problems, being financially prepared, however, can tremendously increase your odds of surviving the crisis.
Here are some ways to be financially prepared for a future crisis:
Boost your emergency fund
An emergency fund is a money you set aside to cover unexpected expenses and to secure your well-being. You may already hear the saying “Hope for the best, plan for the worst.” This advice can be applied to many things and especially true when it comes to finances, but how do you really start? Here are some steps:
- Determine your income
- Set up automatic savings
- Continue to do this until you have enough to cover three to six month’s worth of expenses.
Use Online Banking
Using online baking from the comfort of your home makes everything convenient especially when you are facing a calamity such as a typhoon and pandemic. More and more companies are accepting payments through bank transfer by simply taking a screenshot of the proof of payment — and all it takes is just a few clicks. This is helpful because you’ll avoid penalties and other late payments when you miss the due date.
Other advantages of Online Banking:
- Lower fees
- View transactions history
- Transfer funds to other bank accounts
- Check your account 24/7
Keep cash on hand
Even when everything seems to be digital, having cash on hand is still important because it will serve as your back up. Sure, you can just use your credit card, but, a power shortage or electrical issue will most likely happen when there’s a calamity. So make sure you have cash for at least three days to pay for your food, accommodation, and other basic necessities.
Ready your important documents
When there’s a calamity or a disaster, you’ll likely be asked about your identity to confirm your financial assets or to have access to your property. Make sure your original or extra copies are all with you and located in one folder where you can reach easily.
Information and important documents that you should put in a safe place:
- birth certificates
- property deeds,
- insurance policies,
- Social Security cards,
- bank account information,
- credit card account information,
Life is uncertainty and the pandemic that we are facing today is an example that calamity can happen to anybody, anytime. Although it left us with an unpleasant experience, it has, however, provided us hard lessons that we should carry moving forward. If you find yourself thinking that you could have been smarter in handling your finances, don’t dwell too much. Just get up, fight, and take the lessons above.