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It’s no secret that people who live in disaster-prone areas (and many others) keep emergency kits and “bug-out” bags filled with necessary supplies in case they need to leave home in a hurry.
But in addition to items that can help you physically in an emergency, it’s a good idea to put together a “financial emergency kit”: information and documents that could help keep your life “running” and get you access to help you need even if you’re away from home for an extended period of time.
“I want you to think about preparing for the what-ifs,” money expert Clark Howard says. “Let’s talk about when the storm comes. How are you prepared for that? Where’s your key paperwork? Do you have copies of things stored in the Cloud or at a friend’s house or whatever?”
This article will cover some of the important preparations you need to make for a physical and financial emergency kit.
Most of us just need to do basic preparation. Many times when the moment of need comes, it will be far less dramatic than you might imagine — but still really disruptive to your life.
Below is a list of important documents that can help keep your life running. You should try to take physical copies with you or have access to them online. The list is based on guidance from the Insurance Information Institute and the American Red Cross.
Having your documents in a safe place is really important. Two storage methods that Clark uses are a portable, fireproof safe and the Cloud.
“Are you going to have a firebox?” Clark says. “We’ve got one. We have a big fire safe that is supposedly waterproof and fireproof.”
Inexpensive fireproof safes that can hold a few documents start around $30. Extra-large, heavy-duty models can cost hundreds of dollars.
Amazon, Home Depot, Lowe’s, Walmart and many other retailers sell fireproof and waterproof safes at reasonable prices.
Read our guide on how to choose a fireproof safe.
Clark says he has an electronic record of account numbers and similar sensitive information. “If the paper files are destroyed, I still have access to the information,” he says.
“If you have to evacuate due to a disaster or whatever, how are you going to know what bills you have to pay and when they’re due? I have that stored on my phone: all the bills I have to pay and when they’re due,” Clark says.
Aside from a cell phone, another digital storage option is an external hard drive that backs up your data. I use a 4TB LaCie external hard drive with my MacBook Pro. But you can find some inexpensive external hard drives with 2TB for around $60 on Amazon.
To really have peace of mind when it comes to data, back it up twice by also uploading it to a free cloud service such as:
Read our in-depth online guide on the best free Cloud storage options.
“I have online access set up for my auto insurer, my homeowners’ insurer. I know where I can go to get that information,” Clark says.
In addition to the documents listed above, the American Red Cross suggests you have the following physical items in your emergency kit:
More items you might consider: hand-crank flashlights and radios and other devices so you can charge your cell phone even when there’s no power.
Communication with loved ones can be challenging during a natural disaster. Wired recommends the following:
If people are trying to reach you:
It’s no fun to be unprepared. These are simple things you can do that require minimal money and a small investment of your time!
This post was last modified on October 31, 2022 2:01 pm
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