Keep Some Cash

Today's Assignment

Prepare a small amount of cash to have on hand in case of disaster

After a disaster, you may need cash for the first few days, or even several weeks. Income may stop if you can't work. To help stay solvent, consider the following:

Keep a small amount of cash or traveler's checks at home in a place where you can get at it quickly in case of a sudden evacuation. A disaster can shut down local ATMs and banks. The money should be in small denominations for easier use.

Set aside money in an emergency fund. That can be tough to do on a tight budget, but it can be well worth the effort. The fund can be very helpful, not only in a disaster, but in other financial crises, such as during unemployment or when unexpected expenses like legal fees arise.

Keep your emergency funds in a safe, easily accessible account, such as a passbook savings account or a money market account.

Keep some funds outside the local area, since the disaster that affects you could also affect your local financial institutions. A mutual fund money market account in another city or state is one option to consider.

Keep your credit cards paid off. You may have to draw on them to tide you over.