6 Simple Steps to Help You Feel Financially Prepared
Unexpected expenses and emergencies can happen at any time. While you can’t plan for every situation, taking a few simple steps now can help you feel more prepared when the unexpected comes your way.
HCP Credit Union created a Financial Preparedness Checklist to help members take a closer look at their savings, important documents, insurance coverage and other areas that can make a difference during an emergency.
1. Start an Emergency Fund
You don’t need a large amount of money to get started. Even having $100 saved in a separate emergency fund can help when an unexpected expense comes up.
One simple way to build your savings is to set up a small automatic transfer. Choose an amount that works for your budget and set a personal savings goal to work toward.
2. Review Your Beneficiary
When was the last time you checked the beneficiary listed on your credit union account?
Life changes, so it’s important to make sure your beneficiary information is still current. HCP’s checklist gives you a place to note when you last reviewed it so you can keep this important detail up to date.
3. Organize Important Records
Important documents can be difficult to replace, especially during an emergency. Keep your important records and copies organized in two locations.
Your checklist includes a few documents to gather, including:
Passport
Will or estate documents
Insurance policies
Having these documents organized ahead of time can make it easier to find what you need when you need it.
4. Keep Emergency Cash
It can also be helpful to have some cash available for an emergency.
HCP recommends keeping a set of small bills in a secure place. As part of your preparedness plan, choose an emergency cash amount that makes sense for you and work toward that goal.
5. Review Your Insurance
Your insurance coverage is another important part of being financially prepared.
Take time to review your coverage, deductibles and claim contact information. HCP’s checklist includes space to review auto, homeowners or renters, life and health insurance policies.
Keeping this information current can help you know where to turn if you ever need to file a claim.
6. Create a Home Inventory
Would you be able to list your belongings if you needed to make an insurance claim?
Creating a home inventory can make that process easier. Catalog your belongings and back up photos digitally so you have a record available if you need it.
HCP’s checklist suggests including items such as electronics, appliances, jewelry and clothing, along with other high-value belongings.
Take the First Step Today
Financial preparedness doesn’t have to happen all at once. Start with one item, set a goal and continue working through the list as you’re able.
Download HCP Credit Union’s Financial Preparedness Checklist to keep track of what you’ve completed and what still needs your attention.
Have questions? Talk with one of HCP Credit Union’s financial counselors for additional help.
