Noah built an ark. Do you have a plan for the next big storm in your area?
If you live in one of those parts of the country prone to frequent weather changes, you’re probably familiar with the saying: “If you don’t like the weather, just wait 10 minutes.”
Weather is always with us – it’s the fallback conversation starter. The local forecast may be the last thing you hear before going to bed and the first thing you check when you get up.
With all of our preoccupation with weather, it’s hard to believe most of us don’t have an emergency weather plan.
Ready.gov, the federal government’s emergency preparedness website, lists 15 different types of natural disasters that could occur at any time, depending on where you live: drought, earthquakes, extreme heat, floods, hurricanes, landslides, severe weather, space weather, thunderstorms & lightning, tornadoes, tsunamis, volcanoes, wildfires, winter storms and extreme cold. But none of these should catch you off guard. Often, the best thing to do is to take charge, and by that, we mean be prepared.
While the specifics of the potential weather event or natural disaster may differ, the basics of preparing are similar for all. You need a plan, a kit and an emergency fund.
Your plan
Plan in advance what you and your family will do when a big storm or other natural disaster occurs. Don’t assume everyone will be together when something happens. Establish a meeting place, a method of communication (remember, cellphones don’t always work when the power is out), and discuss ways of reuniting. Consider different scenarios and learn the emergency plans of places where your family spends a lot of time, such as schools and offices. Ready.gov has a Family Emergency Plan form you can fill out and send to family members and friends. On the site, you also can find out more about establishing family communication plans, as well as school and work emergency plans.
Your kit
Your disaster kit should have three-days of food and water for each family member. It may take that long for things to return to normal. The basic items you want in your kit are shown in the graphic. Other things to consider are blankets or sleeping bags; tools; household bleach and a medicine dropper for sanitizing; matches and/or a lighter in a waterproof container; feminine supplies and personal hygiene items; activities for kids if you have them; and diapers and infant formula. Don’t forget the family pet: Include extra water and food for your pets. The Federal Emergency Management Agency and your local emergency management office will have more suggestions on what your kit should include, based on the risks that exist where you live.
Your emergency fund
An emergency fund should be held in an easily accessible cash account. Ideally, it would equal at least three and preferably six months of your living expenses. It’s a good idea to have money set aside for those non-natural disasters, too, like job loss, major medical expenses, home or auto repairs or just about any other expense that you’re not anticipating. This keeps you from having to use credit when something happens, like a furnace breaking down or a major car repair.
You can gradually build the fund so that you have a better chance of reaching your target goal. It’s easy to get into the habit of making regular deposits to a savings account – your bank may even be able to set up automatic contributions for you. Once the account gets larger, you can move it into an account where it earns interest, like a money market account or certificate of deposit, as long as it is somewhere it will be easy to access in case of an emergency. You can find more information about creating an emergency fund online or ask your financial advisor about options.
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Material prepared by Raymond James for use by its financial advisors.
