It’s hurricane season. Call me weird, but I like to track the hurricanes each year. Maybe it is because I lived in Miami one summer or maybe its because I was on the ground days after Katrina hit volunteering.
Are you ready for both a real hurricane or for a financial hurricane? We will all experience shocks in life, like car accidents, natural disasters, physical ailments…etc. The question is not IF, but WHEN. It is recommended to have a plan if a hurricane hits.
So, do you have a financial plan? Do you have the proper life insurance (Term), health insurance, disability insurance, home owners insurance….in place? If not, you could be asking for a hurricane. When you see a storm approaching, you take precautions. You might put up the storm shutters , bring in the dogs and plants, or stock up on food and water. So why not prepare for financial emergencies.
Everyone should have at least $1K of emergency money for when something happens. After your debt is paid off, build that emergency fund up to 3-6 months of necessities. Insurance is also a step in guarding against the financial hurricanes. Everyone should have health insurance as medical problems are the number one reason for bankruptcy.
Next, put in place auto, homeowners/Renters, Life insurance (Term is the best), Disability, Identity Theft. Also consider flood & earthquake insurance should you live in such an area. This takes time, but begin the process of getting insured. Also, especially if you have children or assets, you should get a will in place. Prepare for the worst, your family will thank you should the storm hit.
Hurricane season is upon us and its time to get our ole’ financial storm shutters ready. No matter if you’re going to stick out the storm and have a hurricane party (How to Host a Hurricane Party) or if you’re going to evacuate…it’s time to prepare.
Action: Evaluate what insurance you have and if you have the proper coverage.
(Photo by alpoma)