You have probably heard that it’s important to be prepared for a disaster. You might have a first aid kit set aside, food and water, or a battery-operated radio. But, are you financially prepared?
Creating an Emergency Fund
It might be tough but try to set aside some money a little at a time. Even if you can put $10 a week in an envelope, it’s better than nothing. Saving change can really add up quickly, too. Keeping a credit card available is also a good idea, but remember…in a disaster situation, it might be very difficult to use a credit card. Here’s a few more ways to save some cash in the event of a disaster:
- Limit or Quit Habits – If you smoke, drink fancy lattes, or even love your extravagant dinners, consider limiting them or even quitting them. Let’s say the latte you get every day before work is $6 once you pay for the tip. If you stop doing that, or even make them at home, you could save $1000 to $2000 or more over the course of a year.
- Pay Bills When They are Due – You might not even realize it but paying your bills on time can also help you save money. Each late fee adds up, and so does interest. Most major lenders and utility companies allow you to schedule payments in advance, so if you are sure to have money in the bank, this is a great idea.
- Get a New Gig – Finally, think of things that you can do to earn more money. Do you have a hobby you like, such as woodworking or knitting, that you could do for profit? Do you write? There are easy to find writing jobs online, too. If you have a skill like that, or something similar, consider looking at freelance sites like Fiverr. Can you cook? Bake and sell your creations to family and friends. All of these things can bring extra cash in; cash that you can use in the case of a disaster.
There is not a solution here that will work for every family, but you should be able to think of some way to help you put away a little money. You also might be able to do two or three things. Some people believe we are close to some type of world disaster, like, I dunno, our government is taking about building short range nukes again. GREAT IDEA! So you might want to be ready just in case.
Robert Siciliano personal security and identity theft expert and speaker is the author of Identity Theft Privacy: Security Protection and Fraud Prevention: Your Guide to Protecting Yourself from Identity Theft and Computer Fraud. See him knock’em dead in this Security Awareness Training video.