Prepare Financially For The Worst

Hello Brothers and Sisters. 

For the past week, I have been pondering over what I should provide for you in the way of information that would be most beneficial to you for your emergency preparation plans.  As you all know, there are many and varied ways that emergencies can affect our lives.  Just as varied are the preparations that can be made to accommodate them.  We live in times when natural disasters are happening all around us.  We are merely lucky if they haven’t impacted our lives is some way yet.  Just a month or so ago, several families in North Salt Lake were displaced from their homes because of a landslide that began moving toward their houses.  Eventually that slide destroyed one family’s home completely.  A friend of mine is currently vacationing in Hawaii and has been posting comments on Facebook about how they have been anxiously watching as a hurricane Ana approached the islands.  Fortunately it looks like that one veered south of the islands and spare them the inevitable damage that a hurricane brings.  While I lived in Nebraska during the early 2000s we were ever watching the skies for the approach of tornados.   Each year they bring devastation to many communities across the country.  These and other natural phenomenon have a way of causing great hardship to many who have no way of escaping them.  This post is not meant to be a discussion of natural disasters per se, but to remind you that unavoidable calamities can fall upon us at any time. 

Understanding that we are constantly vulnerable, we must ask ourselves, what we can do to begin our preparations for what might come our way;  ask yourselves “Am I Ready.” As I thought about that question, I wondered what would be the most expedient way to begin preparations for my family.  While there are many ways to prepare, I came to the conclusion that the most immediate thing I could do would be to begin ensuring I have enough money set aside to provide for my needs if I find myself dealing with a disaster.  Having sufficient funds comes in two forms; on-hand cash and savings for the long-term.  Let me address each. 

Cash – There are several camps on this one, but a common theme seems to be, have enough ready cash to sustain you for the foreseeable future.  Mr. Paul Sisolak who writes for The “GobankingRates.com” website has this to say. 

When you can’t rely on accessing your funds electronically, you’ll need some legal tender to buy food, gas or other necessities. The questions are: What amount, and where to put it all? Many people are understandably reluctant to keep large amounts of money in their homes for fear of theft or misplacement.  But naturally, there are several easy ways to build up some disaster relief cash, and a safe place or two to hide it should the unexpected ever arise. 

Despite what many sources say, there’s no magic amount you should have nestled away in your emergency fund. Some say $500, others $1,000. Still others suggest three to six months of pay. Suze Orman’s magic number is eight months of living expenses. You might aim for a conservative $10,000, or more.

You should do what feels right to you. No matter the amount, an emergency fund is absolutely necessary — make it a priority. In fact, financial gurus like Jim Wang of Bargaineering and Dave Ramsey say to build up your own reserves fully expecting an emergency.

“It’s not a matter of if these events will happen,” Ramsey says, “it’s simply a matter of when.”

An emergency fund isn’t meant to be dipped into, or spent like disposable income, and creating one takes the very same approach for any other savings, rainy day fund or nest egg. How much can you afford to save? And how much do you think you’ll need for an extreme catastrophic event?

Emergency Savings – Once the immediate nature of a disaster has passed and you are in need of taking care of your needs for an extended period of time, emergency savings should take over.  There is no end to the number of experts who will tell you how to save for emergencies.  Fortunately, we have access to resources provided by our LDS church leaders that can guide us down this path.  In the article “The Times in which we live,” Ensign, Nov. 2001, President Gordon B. Hinckley counseled, “I urge you as members of this Church to get free of debt where possible and to have a little laid aside against a rainy day."  The article provided a thorough calculator (http://www.calcxml.com/do/bud03?skn=38) that can be used to identify how much money you might need to set aside in an emergency fund for that rainy day. 

I will admit that I have not always been dedicated to ensuring my emergency fund was fully laid in, but it has become a priority to me now and I am actively engaged in ensuring Myrna and I have sufficient to take care of the emergencies that come our way.  I encourage you to do the same and begin your preparations if you haven’t already done so. 

Bro. and Sis. Jorgensen