Guide To Emergency-Proofing Your Finances
August 17, 2021
If you haven't done so already, now is a good time to emergency-proof your finances.
Doing so can help limit your overall disruption, lower your stress, and put you in a better position to ride out any emergency -- whether it's a family crisis, a hurricane, or a pandemic.
- You never know when an emergency will strike, so it's best to have a plan to get you through a crisis.
- Because of the normal bust and boom cycles of the economy, there will always be downturns.
- To prepare, save an emergency fund, make sure your insurance is adequate, create a budget, and pay down debt.
- Designate a financial and medical power of attorney and create a will.
Any emergency is disruptive and difficult, even when you're prepared for it. But if you haven't planned, it can be even more challenging. Emergencies -- whether natural disasters, illnesses, or recessions -- are all but inevitable, so it makes sense to prepare for them as best as you can. Following the recommendations in this article will help you to lessen the disruption, reduce your stress, and be in a better position to ride out the crisis.