Building an Emergency Kit

You’ve heard about the importance of having an emergency fund, but Erin Burt at Kiplinger.com takes this concept further in her Essential Emergency Kit article.

The goal of an emergency fund is to have funds set aside in case you lose your job, have unexpected medical expenses, or have some other short term financial need that is unexpected.

The emergency kit is a complete emergency strategy.  The emergency kit is similar to the emergency fund in that it is protecting you against a job loss, unexpected medical expenses, etc., but the emergency kit is also intented to make sure you’re ready for bigger emergencies, like a natural disaster, or even worse, a man-made disaster.

How is an emergency kit different than an emergency fund?  An emergency kit includes:

• an emergency fund to cover three months of living expenses (start with $1,000 if 3 months of living expenses is too big of a goal)
• making sure your car & home owners insurance is up to date
• updating your life and disability insurance to protect your family in the event of your death or disability
• making your wishes known by updating your will, healthcare directive and other estate planning documents
• creating a survival kit with food, water, and supplies
• creating an evacuation strategy in the event of fire, flood or other natural disasters

These are just a few of the items Erin discusses in her emergency kit.  To learn more, please read the full article, Your Essential Emergency Kit.

Your Essential Emergency Kit - Kiplinger.com.