The End of the World?!

Well, December 21, 2012 is looming around the corner. Are you feeling a bit unsettled? Is R.E.M.’s song, “It’s the End of the World as We Know It” constantly running through your head? Or are you blissfully unaware of the countless theories purporting that this day will be the last the earth sees?

Whether you’re sitting back, having a good laugh at all the nut jobs, or feverishly stocking Twinkies in your bomb shelter, it is a very wise idea to be financially prepared for any emergency. Some may be more difficult
to prepare for, e.g., the earth getting sucked into a black hole. However, there are some steps everyone can and should take to be ready for a “less cosmic” emergency.

Some general tips:

• Have some cold, hard cash on hand. The whole economic structure may not crumble, but all it would take is a massive power outage for your little plastic card to become quite useless. It’s unfortunately not even edible. Experts have differing opinions, but consider having enough cash to cover one month’s expenses, or at least $200-$500. You probably don’t need to be reminded that hard cash can literally burn or be stolen, so keep an appropriate balance that allows you to sleep at night.
• Have an emergency savings. This is extremely important for even non-apocalyptic living. Having at least some amount put away will help buffer you against job loss,deductibles, major repairs, unexpected taxes, solar flares, ANYTHING that might creep up on you. Experts again differ here, but consider working towards 3 to 6 to 12 months of living expenses. Where should you put it? More differing opinions, but check out savings accounts, money market accounts, certificates of deposit, online savings, etc. The key here is that the money is liquid enough for you to access it when you need it.
• Write down or video tape all your major belongings. It will be a lot easier to prove to insurance companies that you did indeed own a 42” flat screen if you have video of it.
• Have enough insurance. Not that it was intended to scare you silly when you were in elementary school, but the Wasatch front is indeed overdue for an earthquake. Don’t lie awake thinking about it, but definitely get earthquake insurance. It may be cheaper than you think. It’s also a good idea to evaluate your other insurances once a year, if not more: health, life, disability, homeowner, auto. Make sure you and family would be protected in the worst case scenario.
• Have a plan. Make sure your family knows where to go, where the food storage is, where the emergency supplies are, etc.

It’s easy to get a little bogged down in all the emergency preparedness talk. It can also seem overwhelming to get everything you need in place. Just remember that steadily working towards your preparedness goals will put you in a much better position than never having started. And no worries; hopefully/probably we’ll all be sitting back, sipping hot cocoa on December 22nd.