Doing just a little preparation in advance for bad weather can really save you a lot of trouble, money and headaches should something happen that affects you or your family.

We’ve seen some pretty crazy weather so far this year in the United States with record snowfalls, ice storms and severe flooding.  All this makes me a little concerned about what lies ahead.

We are quickly approaching prime tornado season here in Oklahoma.  It runs from about April through August.  I lost a home to an F5 tornado back in May 1999 so I know what bad weather can do.

Of course, it isn’t just here in Oklahoma that we have to worry about devastating weather conditions.  Forecasters are already saying the 2010 hurricane season could be an active one.

Again, all this points to the need to take some precautions.  I’m not advocating that we run for the hills.  I’m just suggesting that we all be prudent and wise.

3 Things We Should All Do to Prepare for Bad Weather

“Luck is a crossroad where preparation and opportunity meet.” ~ Anonymous

I hope none of us have the opportunity to use the preparations that I’m suggesting, but if you do and surely some of us will, then you will be counted as one of the lucky ones.

You’ll be thought of as lucky because you’ll have the resources you need to care for your family and to “get by” until better help can arrive.

Here is what I’d suggest you do to prepare for bad weather:

1.  Build Yourself an Emergency Kit

I know you’ve heard this guidance before, but have you done it?  Take it from someone that has been through a disaster without one, you not only need an emergency kit, you want one.  The recommended contents of an emergency kit can not only make your experience a lot more tolerable, it could literally save your life.  I will not be caught in the same situation twice.  I have two children I’m responsible for now and I will always have a well-stocked emergency kit to depend upon.

2.  Get Your Personal Business in Order

Again, from experience, I can tell you that a little preparation makes a bad weather experience a lot easier to handle.  I really like the advice offered in 5 Ways To Disaster Proof Your Finances.  In particular, I’d emphasize the need to have all your important papers in a safe location that you can access even if you can’t get back to your house.  You might need things like your marriage license, insurance policies, passports, banking records, etc.  Also, be sure you have an adequate emergency fund that is easily accessible close by.  A little money sure makes bad situations go a lot smoother.

3.  Review Your Insurance Coverage

My insurance saved me from financial doom when the tornado hit my house.  Fortunately, I had a good agent that sold me the the right coverage, but you can’t always count on this.  I’d recommend doing a little research on your own to be sure you have the right options in your homeowner and auto insurance.  You DO NOT want to find out your insurance was lacking after a loss has occurred.  This is an individual responsibility.  You can’t blame your agent for bad coverage because it won’t do any good.

Of course, disasters can not only damage your stuff, but they can also do the unthinkable and injure you or your family members.  I’d highly recommend checking to be sure you have the right amount and type of life insurance should the worst happen.  You do not want to leave your family with a financial crisis on top of everything else.  Along the same lines, we all need to have good disability insurance that will pay us should we get hurt and are unable to work for awhile or longer.  Life and disability insurance are two types that often get ignored, but they can really save your butt in a crisis.

Please Do Not Ignore These Suggestions

I used to think that bad things would never happen to me.  I’ve learned that life will surprise you sometimes.  You simply can’t control the weather.  Mother Nature is an incredible force that we can’t ignore.  A little preparation before a disaster can really take the sting out of it for you.  It doesn’t take all that much time, money or energy to prepare, but it pays huge dividends.  Please trust me on this one and at least do the bare minimums that I’ve suggested above.  You can thank me later!

Photo by howieluvzus

I saw him staggering when he walked past me down the aisle, but I thought he was just struggling to maintain his balance due to some mild turbulence. 

However, shortly thereafter, two ladies across the aisle just behind me started hollering for help.  When I turned around, I saw the man slumped over on top of them.

Good Samaritans act to help a complete stranger in an emergency

My wife said, “Help them!” and I immediately stood up and grabbed the unconscious man under his arms to pull him off the ladies.  When I first saw his face, I thought he was dead.  His eyes and mouth were open, but he was obviously unresponsive.

We laid him in the aisle and then more competent passengers took over caring for this man.  It was very impressive how fast people responded to the situation.

One gentleman cradled the man’s head in his lap and checked for respiration.  Fortunately, the passed out man was breathing steadily and had a normal pulse.  A nurse onboard soon took his blood pressure which turned out to be very low.  This was likely the cause of his fainting.

By this time, the man was awake and responding to questions although still very disoriented.  The flight crew had a doctor on the phone which determined the situation was non-critical so our plane continued to Houston with priority routing to expedite our arrival.

The selfless acts of these first responders was impressive!

It was amazing to me to witness the quick and competent response of the other passengers on the plane to this emergency.  There truly are a lot of good people left in this world.  We don’t hear enough about them, but they do exist!

These other passengers did not pause to contemplate what it might mean to get involved.  They simply did what came natural.  They cared for another human being when it was needed the most.

This situation just proves that you never know when you are going to be in need of assistance.  You can’t predict the kind of emergency you might encounter or where it will happen.

Good Samaritans made me think of the passengers on Flight 93

After this minor emergency was under control, I couldn’t help but think of the way the passengers handled the situation onboard United Airlines Flight 93 on 9/11.  It is often regular citizens that are the heroes when tragedy strikes.

I believe it was the same character qualities I witnessed in the Good Samaritans on my flight that jump-started the passengers on Flight 93 into action on that fateful September morning.

The people on Flight 93 took action when action was needed.  They gave everything they had to save the lives of others and to disrupt the terrorists.

The lesson these Good Samaritans hammered home to me

I have witnessed several emergencies where the actions of regular, everyday people made a tremendous difference. 

I saw it in 1995 after the bombing of the Murrah Building here in Oklahoma City.  I saw it again in 1999 after the F-5 tornado that destroyed my home.  We all witnessed it in 2001 in the aftermath of 9/11. 

When disaster strikes, we cannot wait for the government or other officials to take care of us.  Regular citizens have to take responsibility and step up to help one another. 

It doesn’t matter the cause of the emergency.  It could be another terrorist attack, a natural disaster or an economic crisis.  Regardless of the cause, regular people that selflessly give to help others will be a big part of the recovery. 

My hat is off to the Good Samaritans of the world!  Thank you for your service and compassion.

Where have you seen the acts of Good Samaritans make a difference?

Photo by Jan Tik

Excuses for not having an emergency fund.

It seems that most of us agree that an emergency fund is a great idea.  If so, then why do so few of us actually have any savings set back?  Let’s explore a few of the excuses that exist:

1.  I never thought of establishing an emergency fund.

It may have never crossed your mind before.  As logical as it is, many of us probably didn’t grow up in a home that had an emergency fund, so it just never occurred to us that we needed one.  I know this was the case for me.  My parents relied on credit cards as their emergency fund.  Again, this is a fast way to run up debt which is not a good idea.

This excuse is officially null and void for you.  You have now been notified that you need an emergency fund.  We’ll talk more about the specifics in a minute.

2.  I don’t have the money for an emergency fund.

I’m sure that this is a very prevalent excuse for not establishing an emergency fund.  Of course, the problem is that life doesn’t stop happening just because you don’t have the money.  In fact, when you don’t have the money is exactly when life happens.  It is when it is the least convenient that the kids get sick, the car needs repairs, the water heater goes out, and it all happens at the same time! 

You can’t afford not to have an emergency fund.  I suggest looking for ways to legitimately raise your income in order to save enough money for at least a starter emergency fund as soon as possible.  You need this to stop the money from running out the hole in the bottom of your bucket!

3.  I use my credit card in case of emergency.

Again, this goes against the idea of getting back to the basics of financial wisdom.  Earlier I wrote about the pitfalls of debt and why becoming debt-free is the best path to financial success.  Some would argue that using a credit card in this manner is okay as long as you pay off the balance every month.  Well, that’s a great plan, but the situation we are discussing is one where a personal emergency has occurred.  Let’s assume this emergency keeps you from working full-time for an extended period.  You may not be able to pay off your credit card at the end of the month.  Without an emergency fund, you leave yourself vulnerable.

Using credit in any form as an emergency fund is a bad idea.  It will often make a bad situation even worse by creating a financial emergency to go along with whatever else has happened.

The specifics on establishing an emergency fund.

Okay, let’s get down to it.  What are the specifics you need to know in order to set up your own emergency fund?  Well, it is pretty simple really, but let’s go over the details just so no one gets confused.

1.  Save $1,000 cash for a starter emergency fund.

You should create a baby, starter emergency fund as the very first step in getting back to the basics with your money.  Some say that you need more than $1,000 as your starter emergency fund.  This is a personal decision.  I think $1k is a minimum.  It is an amount that most people can scrape together pretty quickly if they really set their minds to it.  Do what makes you feel comfortable, but do it now!

2.  Keep your starter emergency fund in a local savings account.

I am a firm believer that you should keep at least $1k in a local savings account that is easily and quickly accessible to you.  Don’t invest it or put it in an account where you can’t immediately withdraw the funds.  The whole idea is that this is cash you can use in an emergency.  Investing comes later.

3.  Only use your emergency fund for real emergencies.

Dave Ramsey often quips, “Why are so many people surprised that Christmas comes in December this year?”  Buying Christmas presents is not a reason to dip into your emergency fund.  You should only use this money in a real emergency.  It should only be used when unexpected, unbudgeted expenses occur.  You should budget for likely expenses.  The emergency fund is your backstop just in case.

4.  Create a fully funded emergency fund when debt-free.

Once you pay off all your debt except your mortgage, then you should add to your emergency fund.  The goal is to accumulate 3 to 6 months living expenses.  This way if you lose your job or get hurt and can’t work, you can survive financially.  Your emergency fund becomes your financial safety net.  At this point, you may want to put some of your emergency fund in a money market account.  I still like to keep $1,500 in a local savings account, but I put the rest in an account that yields a little more interest.

Establishing an emergency fund will minimize crises.

Once you have an emergency fund, you will be able to breathe a sigh of relief.  It will help you to rest a little easier because you will know that you can handle what comes up.  This is a much better way to live!  I challenge you to try this first step in getting back to the basics with your finances.  I think you’ll agree that it is a wise move that will bring you some beginning peace with money.

What are your thoughts on establishing an emergency fund?  Did I leave anything out?  Leave a comment below and let me know!

Photo by SqueakyMarmot

To be prepared is half the victory. ~Miguel De Cervantes

Life is full of surprises.  It pays to prepare yourself.  Things happen to people and families everyday that they are not expecting.  I used to go through life thinking that disasters won’t happen to me.  I don’t anymore.  I’ve lived long enough and have had enough experiences to teach me otherwise.  I’m still very optimistic, but wiser.  I try to prepare myself and my family for the unexpected.

The loss of a friend reinforces the need to prepare.

A friend of mine from high school passed away this last weekend.  She was in her early forties.  She left behind a husband of 25 years, two children, and at least one grandchild.  I didn’t know her that well or keep in touch, but because we went to high school together we have a common bond.

Her passing at such an early age makes me stop and take notice.  She had a medical condition that she wasn’t aware of until it was too late.  It all happened very quickly.  She went into the hospital and in less than a week she was gone.  It is very tragic for her husband and family.

Acknowledging our lack of control is key.

My friend’s death is pretty much a worst-case scenario that most of us don’t even want to contemplate.  I usually refuse to think about such things.  The emotions are difficult to deal with and I like to believe I have life under control.  Acknowledging that bad things can happen means I have to accept that I’m not always in control and that I might have to face some difficult emotional pain.  I don’t like either of these realities.

However, if we fail to acknowledge these types of circumstances as real possibilities, then we will also likely fail to prepare adequately.  This will only compound the problem and may leave us and our family in a serious bind.

Ways to prepare for the unexpected.

Regardless of the situation, there are some things we can do to better prepare ourselves for the unexpected turns that life takes.  Here are some things that you should consider:

1.  Review your insurance coverage.

Money isn’t everything, but its absence only makes a difficult situation worse.  Having adequate insurance coverage in a few certain areas may help you recover quickly from a disaster.  Here are the coverages you should consider:

• Homeowner’s insurance – Does your policy pay replacement value and is the total policy value enough?  I lost a home in a tornado, so I can testify to the value of good homeowner’s insurance.  If you rent, then consider renter’s insurance.
• Term life insurance – You should consider a 20 to 30 year level-term life insurance policy that pays 5 to 10 times your annual income.  Term life insurance is all you need.
• Automobile insurance – Most states require liability insurance, but you should also consider collision and comprehensive coverage.  These coverages pay to fix your car should you be involved in an accident or should your vehicle be damaged in some other way.  You also want to check your policy limits to be sure they are high enough.
• Umbrella insurance – An umbrella policy protects you above and beyond your other insurance coverages.  It usually comes into play if you are sued.  It is a good thing to have and it doesn’t cost that much.
• Disability insurance – Disability insurance pays you if you are hurt and can’t work.  It is often included in an employer’s benefit plan, but you should know the details.  In addition, if you are self-employed, then you will need to buy this on your own.

2.  Have a last will and testament.

Should you die unexpectedly, how do you want your affairs handled?  This is what a will specifies.  If you do not have a will, then the government will decide things for you. 

A will is especially important if you have children.  Who do you want to raise your children should you and your spouse pass away at the same time?  This is a difficult question to answer, but leaving it undone is plain irresponsible.  This is one that I have put off and still need to do myself.

3.  Create an emergency fund.

You should have enough money in a savings account to pay for 3 to 6 months of living expenses in case you lose your job or can’t work.  Knowing that you have this cushion in the bank will help you sleep easier at night.  An emergency fund will also lower your stress in the event of an unexpected disaster.  This means that you will think clearer and make better decisions.  It just gives you a lot more options and can make your life much more comfortable.

4.  Have important documents organized in a safe place.

You do not want to be hunting around for hours to find important documents when life happens.  Gather all your important documents together into one safe place. 

This should include things like your passport, marriage license, insurance policies, a recent bank statement, investment portfolio, your will, a list of emergency contacts, and any other documents you might need close at hand.  Make sure your spouse and another trusted party knows where this information is kept.

5.  Take a first-aid class.

It never hurts to know some first-aid.  This is especially true if you have children or an elderly person living in your home.  Of course, none of us are invincible.  Accidents happen.  When they do, a quick response could save someone’s life or at least mitigate the damage.  First-aid classes are offered by the American Red Cross and don’t cost very much.  It is a great way to invest an afternoon.

6.  Learn to how to ask for assistance.

I’m not the kind of person that likes to have to ask for help.  However, I have learned that it is very hard to do life alone.  I have had some situations crop up in my life that would have been very, very hard to handle without the support, love and assistance of others. 

I suggest thinking in advance about who you would call to help in various scenarios.  It could be a neighbor, friend, family member, or spouse.  Create a list and put it on the fridge.  This can be a real time-saver in an emergency.  Also, don’t forget to include the phone numbers for various emergency services in your community.

A little preparation goes a long way.

It really doesn’t take that much effort to prepare yourself.  However, trust me, it will really pay off when you need it.  I hope you never have to go through a loss like my friend’s family is enduring right now, but if you do, you’ll be glad you took the time to prepare.

What do you do to prepare for the unexpected?

Photo by Chris.Violette