No matter how good you are with money, an unexpected disaster can happen to any of us and leave you majorly out of pocket. Whether you have been made redundant unexpectedly, been involved in a nasty car accident or the boiler at home has broken down, prep your finances for disaster to avoid ending up going short.
Check your insurance and make sure you’re well covered for different situations. Get insured against loss of life. Nobody likes to think about it, but it’s important to leave something behind for your loved ones, especially if you’re a parent. Shop around for good rates, but don’t skip it. You don’t want your family to get slammed with the costs of your funeral or other expenses after you’ve gone.
Insure your home and your belongings. You want to be covered if the shower leaks through the ceiling, the boiler breaks down and needs replacing if your home is broken into. Consider extra coverage for valuable items like bikes, jewelery or electronics. Make sure your devices are still covered if you take them out of your home.
If you’ve been hit with insurance costs after an accident, whether on your health or car insurance, consider looking into compensation if you weren’t at fault. Speak to a personal injury lawyer for advice and help your finances to recover.
Set Up An Emergency Fund
An emergency fund is a safety net in case of loss of earnings. Try to have between three and six months of expenses in a savings account. This can help you get through if you lose your job, giving you some breathing room to find another.
A second savings account for funds for things like home repairs, the car failing or an expensive bill from the vet could also be wise. Try practicing discipline with this fund and not using it for lifestyle purchases.
Protect Important Documents
If your home is destroyed or damaged after a disaster like a fire or a flood, you’ll need access to your important documents.
Create an emergency file with copies of important documents, account numbers and important phone numbers. Store insurance documents, and phone numbers of insurers and your bank. Scan the documents and save them in the cloud, or email them to yourself so they’re safe, even if your property isn’t. Take copies and store them somewhere else, like the home of a friend or a family member.
Being prepared for disaster might push you to think about the worst, which isn’t pleasant, but it will protect you and your family in the face of bad luck. Stay on top of your insurance coverage to make sure you’re not caught out by something unexpected. Store any important documents somewhere safe so you don’t lose access to them. With some smart sense, and organization, you can protect your money and be well prepared, even if the unthinkable were to happen to you.
About Money & Mimosas: Money & Mimosas was started as a passion project by Danetha, a former NFL cheerleader turned entrepreneur and financial journalist. After a brunch conversation with girlfriends, Danetha was inspired to launch a blog to explore her journey of becoming rich, sexy and confident.