Protect Your Finances During an Emergency

By Kaitlyn Szabo • January 31, 2022

It is often overwhelming and hard to see a way out of the mess when life hits you with a truly unexpected emergency. That’s why we’ve identified three unique steps to take to protect your financial wellbeing after a variety of stressful emergencies. While we discuss how to respond financially, please be sure to protect your mental, physical, and spiritual wellness by practicing self-care, mindfulness, and asking for help if you need it.

Unexpected Loss of Income

A sudden job loss or reduced hours can be discouraging. To overcome this setback, take time to do the following.

1. File for unemployment benefits and review your health insurance options if you are no longer covered.
2. Create and do your best to stick to a bare-bones emergency budget.
3. Ask your creditors about assistance programs or income-driven repayment plans.

What can I do now to better prepare for an unexpected loss of income?

Set a goal to create an emergency fund.

Medical Emergency

The reality is if you get seriously sick or injured, care is expensive, so be proactive with these tips to reduce costs.

1. Review itemized medical bills for errors, including possible violations of the newly passed No Surprises Act. 
2. Verify that your insurance coverage (if applicable) was applied correctly and appeal any denied claims.
3. Contact the billing department to negotiate a lower price or better repayment terms.

What can I do now to better prepare for a medical emergency?

Confirm that your policy meets your needs.

Urgent Car Repair

If the dreaded engine light turns on or you get into an accident, try these tricks to save money on needed repairs.

1. Get a written quote, if possible, to estimate the cost and read reviews before working with a mechanic.
2. Search for “Automobile Repair Loans” on United Way 2-1-1’s website to see if you qualify for assistance.
3. See if you are eligible for The Lift Garage’s services and, if you do, see if they have available appointments.

What can I do now to better prepare for an urgent car repair?

Stay on top of the routine maintenance schedule.

Family Crisis

Emotional events like death or separation also require tough but honest conversations about money.

1. Gather the household to discuss finances, including any significant changes to expect following the crisis.
2. Set clear expectations about how you will support your family members financially if you choose to do so.
3. Create a support system or network of other family members, neighbors, or friends to help manage stress.

What can I do now to better prepare for a family crisis?

Practice talking about money with family in informal ways.

Natural Disaster

After securing your safety following a weather-related emergency, take swift action to get financial aid. 

1. Reach out to the local emergency manager or community resource group for immediate assistance.
2. Register for direct aid if your area has been declared for Individual Assistance.
3. Make a claim with your insurance provider. Be sure to document damages and save receipts as needed.

What can I do now to better prepare for a natural disaster?

Make a plan with these financial preparedness tools.

Money Management E-Newsletter: January 2022