Financial Preparedness: 6 Simple Steps to Help You Feel Ready
Unexpected expenses can happen at any time. A little preparation today can make it easier to respond when something comes up and help you feel more confident about your finances.
Nebraska Energy Federal Credit Union’s Financial Preparedness Checklist breaks the process into six simple steps—from building emergency savings to organizing important documents and reviewing your insurance.
1. Start an Emergency Fund
You don’t have to save a large amount all at once. Start small and build from there.
Consider setting up an automatic transfer into a separate savings account. Even having $100 set aside can help when an unexpected expense comes up. As your budget allows, continue adding to your emergency fund and set a savings goal to work toward.
2. Review Your Beneficiary
When was the last time you reviewed the beneficiary listed on your credit union accounts?
Life changes, and your account information should keep up. Take a few minutes to make sure your beneficiary information is current, especially if it has been more than a year since you last reviewed it.
3. Organize Important Records
Knowing where your important documents are can save time when you need them most.
Gather important records such as your passport, will or estate documents, and insurance policies. The checklist recommends keeping important documents and copies in two locations.
4. Keep Emergency Cash
Digital payments are convenient, but keeping a small amount of cash available can also be part of your financial preparedness plan.
Set aside a group of small bills in a secure place and choose an amount that makes sense for you.
5. Review Your Insurance
Take time to review your current insurance coverage, including policies such as auto, home or renters, life, and health insurance.
Check your coverage, deductibles, and claim contact information so you know what you have and who to contact when you need help.
6. Create a Home Inventory
Could you list the belongings in your home if you needed to file an insurance claim?
Creating a home inventory can make that process easier. Record important details such as the item description, brand, model or serial number, receipts or proof of purchase, and photos of valuables in each room. Backing up those photos digitally can also help you keep your records accessible.
Get Started with Our Financial Preparedness Checklist
Financial preparedness doesn’t have to happen in one day. Start with one step, work your way through the checklist, and revisit it regularly as your finances and household change.
Download our Financial Preparedness Checklist to set your savings goals, review important information, and keep track of the steps you’ve completed.