Are You Prepared for a Financial Emergency?

by Miriam Caldwell | More from this Blogger

10 Jun 2006 09:51 PM

Are you prepared for a financial emergency? This is not a question that should be taken lightly. There are a number of events which can cause a financial emergency, and different steps that you can take in order to prepare you family for those emergency. Being prepared financially will bring you a great sense of peace.

The first type of financial emergency can be when an unexpected expense arises. An example of this is that your car breaks down and you need to have it repaired. It can also be when your air conditioning or furnace breaks down. As easy way to handle these types of emergencies is to have an emergency fund. You should set aside at least $1000.00 for this fund. If you can afford to save more than do so. Imagine the peace that will come if you have several months of income set aside as an emergency fund.

Another type of financial emergency is job loss. This could be due to an injury or a lay off. You can purchase insurance through companies such as AFLAC, which can supplement your income, while you recover from an injury. If you lose your job you may receive a severance package or unemployment benefits, but you are not guaranteed these items. A large emergency fund would help you through these times until you can find new employment.

Another financial emergency could be related to the serious illness or injury of a family member. This is why it is important to make sure that you have adequate medical coverage for every member of your family. You can also purchase supplemental policies that can help to cover your out of pocket cost. The out of pocket cost can become quite high if you are hospitalized for an extended period of time.

Another financial emergency, which can occur, is the death of a loved one. In the event that you or your spouse dies it can devastating to your family in more ways than one. Not only do they end up struggling to adjust to not having one of the members of the family, but also there may be concerns on how to replace that income. You need to make sure that you have adequate life insurance in place for both you and your spouse.

As you take these steps to prepare for a financial emergency, you will be able to provide for your family's needs during difficult times. Financial emergencies are real and unpredictable. I have seen the strain that they can cause on a marriage and a family. It is important to prepare for them now.

Learn more about Miriam Caldwell

Miriam is a SAHM mom of three children. She has a daughter who is seven, and two sons, four and two. She loves being a parent and spending time with her children.

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