How to Prepare an Emergency Financial First Aid Kit

Life happens unexpectedly, and those moments can carry a big financial burden. So, it’s important to be prepared. An emergency financial first aid kit can be an invaluable and convenient tool to have. It involves collecting all the necessary information, as well as a financial windfall, that you can readily access when needed. Here’s what you should include to ensure your finances don’t take a big hit in the event of an emergency.

Emergency Savings Account

According to Bankrate, less than half of Americans have three months’ worth of expenses saved up—and a third had to tap into those funds in the past year. With an emergency fund readily available, you can cover unexpected expenses, like car repairs, medical bills, or job loss. While three months of expenses can be a daunting task for many, starting small can pay off in a big way. The right savings account lets you have a safe and secure way to build up your savings. Cyprus Credit Union has flexible savings account options, including:

• Share Savings: Included when you become a Cyprus CU member, you can start with as little as $5 and have dividends compounded monthly, with no withdrawal penalties.
• Money Market: Get higher returns and easy, unlimited access to funds with variable interest rates.

Learn more about our savings accounts here.

Budget Outline

Knowing where your money is coming and going at all times lets you make necessary adjustments in case of an emergency. For example, you can see if you’re spending more recently on eating out or notice your electric bill is higher than usual. Therefore, you can make some changes in your daily life to balance your finances better when an emergency happens.

There are budgeting apps available to help you track your money and provide a quick snapshot of your spending. Cyprus CU’s Home Banking and the Mobile Banking app give you 24/7 access to your spending. You can review your spending categories, analyze cash flow, set up account alerts, and more.

Identification Documents

Keeping copies of important identification can give great peace of mind in case you lose them or need them to provide/verify your identity. Examples of documents you need copies of include:

• Driver’s license
• Social Security card
• Passport
• Birth certificate
• Marriage license
• Naturalization documents
• Dental records

Keep photocopies and digital copies alike, just in case. Also, take steps to keep them secure, like keeping them in a locked filing cabinet or a password-protected external drive.

Household Information

For a multi-person household, it may help to keep important contact information handy for yourself and anyone who needs it. Here’s what you should include for yourself, your spouse, and your children, if necessary:

• Full name
• Address/P.O. Box
• Email
• Personal and work phone
• Employment information
• School information
• Place of worship (if applicable)

Gather as much information as you can for your emergency contacts as well.

Financial and Legal Documents

When emergencies happen, you’ll likely need to provide a lot of information. Have available a list of important documents to help the process go by smoothly. Some of these include but are not limited to:

• Insurance policies
• Credit card statements
• Utility bills
• Pay stubs
• Tax returns
• Financial accounts (e.g., checking, savings, or retirement accounts)

Having these on hand can help when you need to apply for disaster assistance, are filing insurance claim, or applying for a loan to cover any associated costs.

Small Amount of Cash

In addition to your emergency fund, keep at least $1,000 available for more immediate needs, like food or gas. Having cash can help in case your credit/debit cards aren’t working or you have limited access to your financial accounts. This amount of cash can be kept safe along with your important documents as part of your emergency financial first aid kit.

Stay Safe

In the event of an emergency, stay vigilant, as many scammers might seek to take advantage of people in a disaster situation. If in doubt, ask for more information to verify identity and don’t share any personal information unless you’re absolutely sure. With all this in tow, you’ll be better prepared for any emergency.