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May 4, 2022

How to Prepare for Common Financial Emergencies

Use these strategies to secure your financial stability and plan for life’s unexpectancies.

Being financially secure is a common goal for most people. In our unpredictable world, financial emergencies happen more often than not—an unexpected medical bill, the loss of a job, a fender bender, or even a pet emergency. Regardless of the situation, these unplanned expenses can quickly add up. Here are some tips on how to be ready in advance.

Begin building an emergency fund

Develop the habit of consistently setting aside extra money each month. Ideally, you should try to save enough money to cover your essential expenses for three to six months. Doing so will benefit you when you least expect it, especially if you experience a job loss or get into an unavoidable accident. Save your money in an account that you’ll be able to easily access in a pinch.

Make sure you are covered

When preparing for a potential financial emergency, it’s important to consider various insurance options. Auto insurance, health insurance, homeowners insurance, and renters insurance can help cover unforeseen or expensive bills. Based on your needs, consider selecting an insurance plan that works best for you sooner rather than later.

Maintain good credit

Sustaining a good credit score is the first step in acquiring any sort of loan or additional finances that may be of use during a financial crisis. Oftentimes, people have high-interest debt, loans, and bills that need to be regularly paid. If you end up in a financial situation requiring immediate action on any pre-existing payments, having good credit is a necessity.

Organize your financial records

Finally, make sure that your finances are in order. Start by creating a basic filing system for yourself to easily track upcoming bills, tax returns, mortgage documents, and any banking or account statements that you may receive. Additionally, it’s important to protect and be mindful of any financial data and information that you have in your possession. Consider investing in a filing cabinet and paper shredder to easily protect and discard any financial documents that tend to be at home.

It’s crucial to recognize the importance of preparing for financial emergencies sooner rather than later, as they are unfortunately unavoidable. At Citizens First Bank, we’re here to assist you and your loved ones in preparing for any unexpected events along the way. We offer various saving plans and loan options to help you succeed in fulfilling your financial planning goals. Feel free to stop in, give us a call, or visit our website today.