Using a Birmingham Savings Account to Develop an Emergency Financial Plan
There are 5 essential elements to a financial emergency plan:
Build a Safety Net
Set up a specific Birmingham savings account titled “Emergency Fund” or designate a CD or money market as your “Last Resort Fund.”
Most financial experts recommend having at least three months of your salary in reserve at all times. Tap into this fund only if you lose your job, have damage to your home, incur medical or hospital expenses not covered by your insurance or wreck your vehicle.
Protect Your Loved Ones
There are resources available to insure you don’t leave others with your debt or are left yourself with unnecessary expenses. Most financial institutions offer optional loan payment protection.
These plans cover the cost of your loan payments in the event of an accident or death or should you become disabled or out of work. Most insurance plans can be financed into your original loan amount.
Protect Important Documents
Birth certificate, drivers license, marriage certificate, wills, social security cards, passport, etc. All of these important documents tell who you are and where you are in your life.
If these documents should get lost, stolen or damaged, it could cost you money, time and heartbreak. Make copies of these items (both hard copies and electronic if possible) and invest in a safe deposit box.
Talk It Up
Communicate your financial affairs to someone you trust. Consider a financial advisor. Your financial advisor will not only be in the know of all your financial affairs but can serve as an impartial party, especially during difficult, emotional times.
You also may want to make a list of creditors you owe along with their phone numbers. That way if you should get in an accident and are physically unable to make your payment, you or someone you trust can contact them to explain the situation and request an extension.
Go Online
As an online user, you can check your account from anywhere at any time. With online bill payment and e-Statements, you can also pay your bills anywhere and enjoy an electronic record of your financial information. This comes in handy in case something happens to your home or if you become displaced or hospitalized for any reason. It’s also a convenient backup for housing your financial portfolio.
Life is unpredictable. It’s imperative to get organized financially now so if the unexpected occurs, you’re ready and able to deal with all of the day-to-day small things that really do make a big impact.
