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Organize Your Finances In Case of Emergency
By Molly's Brother | December 18, 2006
Would you be prepared to pull your life together following a natural disaster?
A quick glance at the map and you can suggest which natural disaster silently stalks the region, waiting to pounce. The Southeast finds itself victim to hurricanes, the Northeast to unbelievable blizzards that can bring cities to their knees. The Midwest has severe weather–tornadoes, blizzards, violent thunderstorms, and oppressive heat. And the Northwest has…well…do gray wool socks in Birkenstocks count as a natural disaster? (They do in my book.)
I live in earthquake country. For years, we bask in the California sun and then every once in a while the ground below shakes. The earth moves. Foundations crack, glass breaks, buildings fall, and a few people die. I always wonder what I would do if my building was the one that fell. Or worse, what would my family do if I was the one that died?
It’s not only the natural disasters that could ruin our financial future. The rug could be pulled out from under us at any time: flood, fire, unexpected death. If your house burned down, could you pull your financial life together? If you died, would your family even know where to begin to look for those ever important papers?
This weekend I took some time and organized my finances just in case of an emergency.
I created a cheat sheet of sorts, listing all my financial information, phone numbers, insurance policies, account numbers and the such. By listing just the important information, I was able to boil it down to a few pages.
In case of emergency, you should list the following information in one central file:
Contact Information Write the names and numbers of your family, close friends, and your doctor. You should also list anyone who has any relationship to your financial accounts (such as financial planners and other professional advisers).
Financial Accounts To make it easy for you and your loved ones during the emergency, list all your financial accounts and which institutions they are at. Go ahead and omit specific account numbers and passwords. You don’t want to give away too much information should this information be stolen. If you have your social security number, that should be more than enough.
You should also mention where loved ones can find other miscellaneous information, such as your will, insurance policies, deeds, etc. Include other information that might pertain to your specific situation (ie, the details connected to your retirement benefits).
I’ve compiled the document. Now what? Pulling this document together is an excellent first step, but it does no one any good if it went down in flames with the house. Take extra precautions to make sure that copies of this packet exist.
Make three copies and seal each of them and distribute them to the following people:
- You should have one in your possession in a fire safe place.
- Mail a sealed copy to a trusted adult (sibling, very close friend, lawyer).
- Mail a sealed copy to another trusted adult who lives in another city (who, chances are, won’t be victim to the same emergency you are).
Taking these precautions now will help you wade through the bureaucratic red tape in the future. You’ll be able to pull all of your most needed information in a flash. Most recently, look to the Hurricane Katrina victims as a living testament that such a catastrophic emergency can happen to you.
>Be prepared and organize your financial information before the emergency strikes.
Topics: Emergency Fund |