5 Steps to Prepare Your Family for a Financial Emergency

Managing your finances can be stressful, but it doesn’t have to be. Having a plan for unexpected emergencies is key to managing your money and keeping stress levels low.

You’ll want to consider the most critical expenses in an emergency and the  nice-to-haves that could be avoided or reduced in a crisis. Here are a few additional ideas to prepare your family for financial emergencies.

Your buffer size depends on your income, essential bills, and how long you can live without one income if you are in a two-income home.

Create a Buffer


It’s important for you to keep track of how much money is coming in and where it’s going out so that you can spot any problems before they become serious.

Balance Your Books


To ensure quick access to emergency savings, you may want to consider opening a second bank account. That way, you can quickly use the money in an emergency situation. 

Prioritize Access


Don’t borrow money to cover an emergency expense—that only makes things worse in the long run and leaves you in debt.

Pay for Emergencies First


These policies can not only help shield you in the event of a financial emergency, but they can also make the cost of them much less than if you didn’t have them.

Consider Insurance