Prepping for an Emergency: How to Make Sure You Have the Savings You Need in Advance
Tuesday, April 25, 2017, 6:00 AM | Leave Comment
You can’t predict when an emergency is going to strike, but you can be financially prepared for it.
If unexpected car repairs or a sudden medical expense have the potential to leave you financially devastated, it’s time to shift your financial priorities and start saving.
An emergency savings account is one of the best ways to prepare for a potential emergency.
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Create an Emergency Savings Account
When emergency strikes, having the money on hand to deal with it is one of the best ways to make it less stressful.
The best way to accomplish this is by making savings a priority and creating an emergency savings account–separate from your retirement fund or savings for major purchases–that you can draw from in the event of an emergency.
Ideally, this fund should contain a minimum of $1000. Once you’ve met that goal, you can start saving for bigger goals: one key goal is to save at least three months of living expenses, which will allow you to support yourself in the event of a job loss or other problem.
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Know Where to Get a Decent Loan Fast
You don’t always have the savings in place to handle a financial emergency, but you can ensure that you’re properly prepared for whatever happens.
Look into loan providers like Las Vegas Finance, which can offer a reputable source of loans that you can repay as soon as it’s convenient for you.
By checking out these companies ahead of time, you can be sure that you’ve chosen the right one to handle your loan needs when the time comes.
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Develop a Plan of Action
Eventually, emergencies are going to happen. You need a plan for how you’re going to handle them.
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Where is the most reputable car repair shop in your area?
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If you’re injured in your city, which hospitals are in network for your insurance provider?
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What bills do you need to cover in the event that you’re out of work for a few weeks?
By developing a solid emergency plan, you’ll be prepared when disaster strikes–and that means you’ll be less likely to engage in unnecessary spending that will increase your debt during the emergency.
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Being financially prepared for an emergency is critical. The better you’re prepared, the less stressful it will be and the easier it will be to recover from the disaster.
By developing a solid plan of action and a savings account that can handle your emergencies, you’ll find that you’re in a better position to weather whatever life throws your way.
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Kara Masterson is a freelance writer from West Jordan, Utah. She graduated from the University of Utah and enjoys writing and spending time with her dog, Max.
