September is National Preparedness Month—a reminder to think about how ready we are for life’s unexpected turns. While most of the attention tends to focus on emergency kits, home safety, or disaster readiness, there’s another area that deserves just as much attention: your finances.
Financial preparedness isn’t just about having investments in place. It’s about making sure the important documents, accounts, and information you and your family rely on are organized and accessible when you need them most. In other words, preparing financially is one of the smartest steps you can take to protect both your money and your peace of mind.
The Federal Trade Commission puts it well: financial readiness is as important as a flashlight with fresh batteries. With that in mind, here are a few practical steps you can take to strengthen your own preparedness:
1. Take a Household Inventory
Create a list of your possessions and back it up with photos or a video. This step can save you time and frustration if you ever need to file an insurance claim. Store one copy at home in a secure, fireproof file box and another in a safe deposit box or other trusted location.
2. Secure Your Important Papers
Invest in a lockable, fireproof file box. Inside, keep essentials you can grab quickly if you need to leave your home in a hurry, such as:
- Your household inventory.
- Insurance information and policy numbers.
- Copies of prescriptions and health insurance cards.
- Emergency contact lists.
- Key financial records (account numbers, bank contacts, Social Security cards, etc.).
- Backups of important digital files.
- A small amount of cash and spare keys.
3. Use a Safe Deposit Box for Originals
Some documents are simply too important to risk leaving at home. Consider storing items like property deeds, passports, marriage and birth certificates, trust documents, and insurance policies in a safe deposit box. Keep copies or summaries in your home file box for quick reference.
One exception is your original will. Because a safe deposit box may be sealed when you pass away, it’s often best to leave the original with your attorney or another trusted professional. Keep a copy in your fireproof home file box, along with a note about where the original is stored.
4. Establish an Out-of-Town Contact
In an emergency, communication networks can become unreliable. Cell towers may be overloaded, and local calls may not connect right away. That’s why it’s smart to designate a friend or relative outside your immediate area as your family’s point of contact. Sometimes it’s easier to get a text or call through to someone farther away, and having one central person who can relay information helps reduce confusion. Make sure everyone in your family has this person’s contact information saved.
5. Review and Update Regularly
Preparedness isn’t a “set it and forget it” exercise. Review your household inventory, file box, and safe deposit box at least once a year. Update insurance policies, account numbers, and contact information as things change.
Taking a little time now to organize your financial life can provide enormous peace of mind. You’ll know that if the unexpected happens, you’ve already done the hard work of putting the right safeguards in place. That’s the kind of preparation that not only protects your finances, but also allows you to focus on what matters most—living your life with confidence.
