Be Prepared for Financial Disaster

Being prepared for disaster is crucial to your finances. Nan Mead, communications director for the National Endowment for Financial Education suggests these steps are essential for everyone.

1. Take inventory. You'll need good records of your belongings for either insurance claims or to prove loses on your tax return. List every item in your house and attach appraisals, receipts, model number or serial numbers for big ticket items. Photograph or videotape every room and the contents of drawers and cup boards for back up. Update annually.
2. Stash some emergency funds. In the event of a disaster, you may not have immediate access to your bank account. Your evacuation box should contain a small amount of cash, and/or travelers checks and a few rolls of quarters and dimes for pay phones.