Tuesday, June 5, 2007

Are Your Financially Prepared for a Disaster?

How financially prepared are you for a disaster? We are coming up on hurricane season and judging by the disaster that was Hurricane Katrina, it's a safe bet that many people in New Orleans and the surrounding area were not financially prepared either before, during or after the disaster.

Prior to a disaster, it is important to have all of your financial ducks in a row. The time to review your insurance coverages, gather your important papers, pay off your debts and save money (both cash at home and in the bank) is before there is even a hint of impending disaster.

During a disaster is when the impact of your prior preparations will be felt. Were you able to stock up on emergency supplies? Did you have the money available to evacuate the area on your terms? Were your important documents ready to grab at a moments notice?

In the aftermath of a disaster, you will be thanking yourself for your foresight. Being properly prepared ahead of time will mean that you won't have any surprises when you file an insurance claim. You will have the cash on hand and in the bank to start over if necessary. You will not have any consumer debts to weigh you down during this trying time and you won't be scrambling for documentation since you were already prepared and had all of your important legal and financial documents available at your fingertips.

It is infinitely easier to be financially prepared for a disaster if you start today by taking tiny actions that will add up to a complete preparedness plan before you need it.

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