When it comes to preparedness, you need to be financially prepared as well as prepared with food. The church has counseled us to get and stay out of debt for years. This is important counsel to follow, but there are other ways that we need to be financially prepared as well. Here are three things that you should do to be prepared financially for emergencies and the future.
First you should have some cash on hand at home. This should be somewhere safe, that you can access in a time of emergency. For example if you live in a city, and there is a big power outage, you may need cash to purchase food, since the ATMs and debit card machines are down. You shouldn’t have you life savings in cash, but a couple of hundred dollars may make your life easier in an emergency.
Second you should set aside money to cover emergencies. This should be kept at a bank in an account that you can access easily. This could cover emergency car repairs, medical emergencies and insurance deductibles. This money can prevent you from using credit cards to cover unplanned expenses. This will give you the peace of mind to handle whatever life throws at you.
Finally it is important to start planning and preparing for the time that you will retire. You should consider when you want to retire, what you want to do once you retire, and the type of lifestyle you want to live after you retire. You should also consider whether or not you plan on serving a mission or several once you retire.
If you focus on getting out of debt, and dealing with these other financial preparedness areas, you will truly be able to get ahead financially. Additionally it is a good idea to have three to six months of income saved to cover times of unemployment and other financial emergencies.
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