Saving for a Rainy Day

A solid emergency fund is perhaps one of the most important tools in developing and sustaining financial security. It is recommended to save six months of living expenses because no matter how well things are going, or well you plan, bad things will happen from time to time.

Well, it can be a hard sell. Spare cash can be hard to come by, and, after all, taking a vacation is a lot more fun. It sounds simple, but survey data reveals it’s anything but that for many Americans. According to a 2011 survey by the National Foundation for Credit Counseling, 64% of Americans don’t have enough cash on hand to handle a $1,000 emergency. If you are one of those who don’t have an emergency savings, learn why you should.

Six Reasons Why You Should Have an Emergency Fund

  1. You lost your job.
  2. You can’t shake that cough.
  3. The only job you can get is three states away.
  4. Your car makes a funny grinding noise.
  5. Someone close to you passes away.
  6. Your roof starts leaking.
First aid kit with money coming out of the case

Planning for the Unexpected

Disasters don’t plan ahead, but you can!  Make a plan for yourself, family and friends.

  1. Get Informed!

    • Know what disasters could affect your area, which could call for an evacuation and when to shelter in place.
    • Keep a NOAA Weather Radio tuned to your local emergency station and monitor TV, radio, and follow mobile alert and mobile warnings about severe weather in your area.
    • Download the FEMA app, receive weather alerts from the National Weather Service for up to five different locations anywhere in the United States.

  2. Preparing for an Emergency. Are you Ready?

    Prepare yourself and your family for a disaster by making an emergency plan. Download the Family Emergency Plan  (FEP) (PDF - 750Kb), print the pages, and fill them in offline.

    Your emergency planning should also address the care of pets , aiding family members with access and functional needs  and safely shutting off utilities.

    Once you’ve collected this important information, gather your family members and discuss the information to put in the plan. Practice your plan at least twice a year and update it according to any issues that arise.

    For more information, visit www.ready.gov .

    Also visit, DisasterAssistance.gov to learn how to handle immediate needs, such as how to:

    • Evacuate or shelter in place.
    • Find emergency shelter.
    • Get food and water.
    • Handle emergency medical situations until help arrives.
    • Find family, friends, and even lost pets.

  3. Tips to Prepare for an Emergency

    1. Store at least 3-6 months of net income for the sake of “just in case.”
    2. The less stable and uncertain your income, especially if you are self-employed, the more you should have in your emergency fund.
    3. Have an emergency plan. Write it down and keep it someplace that is easily accessible
    4. Get Tech Ready - Use your cell phone’s text messaging capability to receive text message updates from FEMA (standard message and data rates apply).
      Here are basic commands to get started:
      • To sign-up to receive monthly preparedness tips: text PREPARE to 43362 (4FEMA)
      • To unsubscribe (at any time): text STOP to 43362 (4FEMA)
    5. Download the FEMA App to access disaster preparedness tips, build your personal emergency kit, and look for open Disaster Recovery Centers along with open shelters (if you're a disaster survivor). Also, stay informed with the FEMA blog.

  4. For Kids and Families

    Ready.gov/kids - Preparing for emergencies shouldn't fall on your shoulders alone. Young children and teens alike need to be part of the process — for their own safety and sense of empowerment.

    • Work together to build an emergency kit.
    • Sit down as a family to talk about your communications plan.
    • Role-play what you would do during a disaster.
    • Have fire drills in your house.

    Sesame Workshop, along with its project partners has created Let’s Get Ready! Planning Together for Emergencies with tips, activities, and other easy tools to help the whole family prepare for emergencies – together!

  5. Pet and Animal Preparedness

    Make a Plan
    Remember, during a disaster what is good for you is good for your pet, so get them ready today. If you leave your pets behind, they may be lost, injured – or worse. Never leave a pet chained outdoors.

    FEMA Blog: 10 Items You Will Need for Your Pets Hurricane Emergency Kit

  6. Disaster Recovery Assistance

    Are you a Disaster Survivor?
    Disaster Assistance is often available from your credit union or bank. You may also qualify for federal assistance.

    The Disaster Assistance Improvement Program’s (DAIP)
    The DAIP’s mission is to provide disaster survivors with information, support, services and a means to access and apply for disaster assistance through joint data-sharing efforts between federal, tribal, state, local and private sector partners.

    Apply for Assistance
    DisasterAssistance.gov allows you to:

    The site can also provides resources to help you learn how to prepare for, respond to, and recover from disasters.

    You can even read the latest disaster news feeds, find other recovery help, and learn how to move forward.

    Disaster Assistance by Phone

    • Call 800.621.3362
    • TTY 800.462.7585

    Helpful Information on Applying
    State Disaster Pages
    Disaster Recovery Tips

    Preparing, Recovering, and Rebuilding After Disasters and Emergencies (CFPB)
    A guide to handling your finances if you are preparing for, recovering from or rebuilding after a hurricane, tornado, earthquake or other disaster. This guide focuses on your finances. If you need information on your physical safety before, during, and after an emergency, visit the Federal Emergency Management Agency’s (FEMA) ready.gov site.

  7. FEMA and Flood Insurance Resources

    FEMA has information about disasters and resources for federal disaster declarations. The agency also provides helpful information for flood insurance policy holders.

  8. BEWARE: Frauds and Scams after a Disaster

    Consumers are often targets of scams after a disaster. Knowledge is power when it comes to fraud prevention. Learn about the most common types of scams and how to protect your finances with information from the NCUA Fraud Prevention Center.

    Disaster Fraud Hotline (U.S. Department of Justice)
    866.720.5721

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