The Boy Scouts teach it. Religions preach it. Today I’m going to add my voice to the chorus:
Get your crap together!
It’s currently mid-day on a Friday and my work week is all but done. Time for me to start winding down and getting ready for a relaxing weekend. Only, Seattle is supposed to get hit by a mega-storm tonight and tomorrow, so I’ve got other things on my mind.
For the past couple of days my coworkers have been talking about working from home this week, making sure they have batteries, 72 hour emergency preparedness kits, candles, gas in their cars and generators, a full pantry. All of this hurrying and worrying so that they can be prepared to deal with this storm and whatever fallout it brings.
One good thing about this storm is that is isn’t coming as a surprise to anyone. We’ve been hearing about it for days, meaning we’ve had plenty of time to prepare.
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HOW TO PREPARE FOR A FINANCIAL EMERGENCY
But what about the financial storms that are sure to hit all of us at some point in our lives? If you’ve not already experienced one, I think it’s safe to say that a financial storm is headed your way. The only problem is that we usually get blindsided by them.
One thing you can do to weather-the-storm is start preparing for it now, so that when your own personal storm hits, whatever it may be, you’ll be (hopefully) ready…financially speaking. Here’s my quick and dirty list of things we can all do to get ready:
Get out of debt
- When you owe money to someone else, they own you. The money you make belongs to them. Get to a place where the money you make is yours to keep, then sit back and watch how fast your net worth grows!
Have an emergency fund
- $1,000 in cash. 3 or 6 months in savings. No cash, but access to credit. Whatever your strategy is, have one in place for when tough times hit…because they’re going to hit.
- If you have a hard time saving money, try using the Acorns app to invest your spare change instead. It’s an easy way to get started if you traditionally have a hard time saving.
- Scrutinize your budget and eliminate the unnecessary crap. Once you’ve eliminated those expense from your budget, use the extra cash to pay down a debt or invest it.
- If you don’t have a budget – create one today. Start by using Personal Capital, a free online tool, that will connect all of your financial accounts, show you where your money is going, and what your net worth is.
Start a side hustle
- You’ve heard the old adage, ‘don’t put all your eggs in one basket’. If your only income is from your full time job, then all of your eggs are in one basket. That’s dangerous. Start doing something right now that will begin to make you extra money.
- Start a side business
- Start a blog
- More ideas here
- If you’re not financially independent yet, then you need life insurance. It’s cheap to purchase and doesn’t take a lot of time to buy it. Financial peace of mind is a great parting gift you can leave your loved ones should you pass away unexpectedly.
Me and my family are ready for our big weekend storm and that means I’ll sleep well tonight. But we’re also getting our financial affairs in order, and that means I sleep well every other night.
Am I missing anything from my quick and dirty list? Is your financial house is in order? Do you have an emergency preparedness plan for your home?