Are You Financially Prepared for the Unexpected?

September is National Preparedness Month, a time dedicated to raising awareness about the importance of planning for emergencies and disasters. While stocking up on supplies and creating safety plans are essential steps, financial readiness is often overlooked. Below are some practical tips to help you prepare for whatever comes your way.

Know Your Risks:

Every region faces different emergency risks, be it hurricanes, wildfires, earthquakes, or floods. Start by researching the types of natural disasters most likely to affect your area. Knowing the risks allows you to better prepare physically and financially for the specific challenges they bring. Use resources like Ready.gov or your state’s emergency management office to get location-specific preparedness information.

Build a Financial Safety Net:

Having a solid emergency fund is one of the best defenses against financial disruption. Aim to save 3–6 months' worth of living expenses, including rent/mortgage, utilities, groceries, and insurance.

Keep some cash on hand in a safe place in case power outages or network failures disable ATMs and mobile banking. If possible, store funds in a high-yield savings account for easy access and steady growth.

Create a Personal Emergency Plan:

Preparedness isn’t just about supplies, it’s also about communication and coordination. Have a backup plan in place for your family or household:

• Designate an emergency contact who lives out of town.
• Share critical financial details (like where documents and passwords are stored) with a trusted family member or advisor.
• Keep a list of essential expenses and know what bills must be paid even during a crisis.

Keep an Inventory of Your Assets:

In the event of property damage or loss, having a well-documented home inventory can be crucial for filing insurance claims:

• Photograph or video your belongings.
• Record serial numbers, model types, and purchase dates.
• Store this inventory in the cloud or a secure, portable USB drive.

This small step can save you major headaches in a crisis.

Review Your Insurance Coverage:

Make sure your insurance policies are up-to-date and reflect your current needs:

• Does your homeowner’s or renter’s insurance cover natural disasters common to your area?
• Have you reviewed your health, auto, and life insurance recently?
• Visit your state’s insurance commission website to check for disaster-specific coverage requirements, tips, and resources.

Secure Important Documents:

Organize your essential documents in a safe, portable location – ideally in a waterproof and fireproof container. These should include:

• Insurance policies
• Medical directives and powers of attorney
• Property deeds and titles
• Financial account info
• Social Security cards and passports

Also consider scanning these items and storing copies in a secure cloud service for added protection.

Educate Yourself & Your Family:

Financial preparedness is a team effort. Take time to talk with your loved ones about:

• What to do in different emergency scenarios
• Where key documents and funds are stored
• Who to contact if you're unreachable

Emergencies may be unpredictable, but your response doesn’t have to be. Taking the time now to prepare financially will help give you confidence and possibly protect your financial future in a big way.

Speak with an Oppenheimer Financial Professional today to learn more.