October 17, 2008
9 Emergency Family Finance Tips
I usually don’t spend a whole lot of time blogging about issues on this blog. I like to keep it simple and share pictures, and have a place where people can find and connect with me. With that said, I just can’t stop thinking about the current state of our economy so I am putting my thoughts down here.
People don’t tend to spend a lot of time and money preparing for disasters. It seems as though people are more concerned with preparing for a natural disaster than they are about preparing for a financial disaster. Most Americans probably never thought that they would see or experience such a financial disaster in their lifetime.
If you told most people that our economy would be in such serious trouble a few months ago, how many would have begun preparing? Would anyone even have believed your financial advice, or started to prepare? Many people don’t think about preparing for a financial disaster because they think it will take too long. Financial experts say that there are many things you can do to prepare yourself and your family, financially, in no time.
You could start out with a written plan. Most goals are better achieved if they are written down. Set measurable goals that are easily attainable. Dr. Jerry Basford, a personal finance professor at the University of Utah, says that a written plan is a great way to eliminate debt and save money.
Another helpful hint is to contact your creditors and lenders right away if you run into any kind of financial problems. If you are upfront and honest with your creditors from the beginning, they will be much more willing to work with you. Contacting them early is a very smart and responsible move. Don’t leave them in the dark for months, especially without any sort of payment.
Here are some great ways that you can help you start preparing for a financial disaster.
1. Maintain credit while eliminating debt.
2. Keep at least a week’s worth of cash on hand for emergencies.
3. Plan and write down ways you could eliminate expenses immediately in a crisis.
4. Have a year’s worth of income in savings. Gradually build this up. Start with one month, then three months, then six months, etc.
5. Plan and write down ways you could bring in income (extra jobs, selling items, renting a room, etc).
6. Prioritize debts that must be paid: mortgages, auto loans, etc.
7. Consider family. Family could be a source of savings for housing, income or other needs.
8. Carefully look at all of your assets (IRAs, etc). Only use these assets as a last resort.
9. Contact your lender early if you run into a problem.
Hopefully, you won’t run into a huge financial crisis. However, it is always better to be prepared. Start doing these things now so you can be as prepared as you possibly can in the event that a financial disaster appears in your life.
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