Statewide Iowa — You’ve heard people talking about September being National Preparedness Month and encouraging you to stay informed about different types of emergencies and how to respond to them, making a family emergency plan, and building an emergency supply kit. But an expert says being financially prepared for an emergency is just as important.
Financial preparedness is also necessary before an emergency strikes, says Sandra McKinnon, a human sciences specialist with Iowa State University Extension and Outreach. Gathering documents and saving money in an emergency savings account are two steps to work on.
McKinnon says that if a tornado comes through and scatters important financial documents, most of us would be hard-pressed to put all that information back together.
She says that to start the process, you should gather important documents and contacts. This includes information like drivers’ licenses, passports, birth certificates, Social Security cards, military records, and pet information.
She suggests you record financial and legal documents, such as insurance policies, tax statements, bills, credit card accounts, investments, the mortgage, banking institutions, wills, and utility and loan accounts so payments can be maintained. This information will also be needed when applying for assistance. Some suggest taking pictures of documents with your cell phone and uploading them to “the cloud” for safekeeping.
In addition, she suggests you gather medical information about prescriptions, living wills, and health insurance, plus a list of household contacts like financial advisor, lawyer, and health care providers.
You can download and fill in an Emergency Financial First Aid Kit from https://www.ready.gov/financial-preparedness. Be sure to keep this document in a safe place and keep it updated.
McKinnon says you can also visit the Iowa State University Extension Store for Getting Organized – Personal and Financial Records, a publication to help you find key information when you need it. Visit https://store.extension.iastate.edu and search for PM 1121.
She also says people should build their emergency savings. According to McKinnon, emergency savings come in handy when the tires need to be replaced on a car or the refrigerator no longer is working. For many people, it may seem overwhelming to start saving or add to emergency savings, but having the money set aside makes responding to disasters much easier.
Photo by Craig Toocheck from FreeImages
