It is said that if your neighbor losses their job it is a recession but if you lose your job it’s a depression! Preparing for unexpected financial emergencies is as important as any other emergency. In fact, you may be more likely to suffer from a financial emergency than most natural disasters. Job loss, temporary or permanent disability, or any other loss of income can wreak havoc in your life. Although our focus is emergency preparedness for disasters and other expected events, we understand that economic emergencies happen to many families, and we are wise to prepare for them.
There are several principles of financial preparedness that can help you prepare for unexpected economic life:
- Earn – Education and hard work can help you earn sufficient for your needs.
- Spend Wisely – Budget and live on less than you earn.
- Save and Invest for long-term needs and retirement.
- Borrow Carefully – Avoid Debt and Eliminate Debt quickly.
- Protect – This is about taking precautions including savings for an emergency, appropriate insurance, being vigilant about your credit record, and avoiding identity theft.
- Be Charitable – find a way to give away a portion of your income to good causes like religious or reputable non-profit organizations.
There are a variety of great online resources that may help you in becoming financially prepared.
https://powerpay.org Free online debt elimination tool that helps you make PowerPayments to reduce debts more quickly. It also provides budgeting, PowerSave to save money quicker, financial calculators, and financial education.
www.scottmarsh.com Scott Marsh is a reputable financial planner and educator whose website has many helpful tools.
www.mint.com Free online tracking of expenses, budgeting, and financial information at blog.mint.com
www.mymoney.gov US government information.
http://www.consumerfinance.gov/parents/ Teach kids money skills.
freecreditreport.com Get one free credit report per year.
www.daveramsey.com/blog/get-out-of-debt-with-the-debt-snowball-plan/