In today's fast-paced world, it's hard to make enough money to get by. Most people have trouble getting by from month to month because they have mortgages, car loans, and a lot of credit card debt. Most people do what they can just to pay their bills, so they aren't ready for a financial disaster, which isn't likely to happen. They can be a storm like Hurricane Katrina, the loss of a job, or a sudden illness. If you aren't ready for a sudden change in your finances, it can break you. But it's not that hard to make plans that will help you when you're in a money pinch. All you have to do is plan ahead a little bit.
Here are some things you can do to be ready for the unexpected:
Get an ATM/debit card. You might not use cash or need a debit card often, but there are times when you might need one. People from New Orleans who had to leave their homes temporarily because of Hurricane Katrina would have been better off if they could still get cash. Even if you don't use one often, get one and put it somewhere safe.
Sign up for direct deposit. With direct deposit, you'll know that your paycheck will be in your bank account even if you can't get to your bank. This will help you if you get sick or there is a natural disaster and your local bank is closed for a while.
Sign up for online bill paying. This way, you can pay your bills even when you're not at home. You don't have to use the service, but you never know when it might come in handy.
Save some money in case of an emergency. Financial experts say you should save enough money to cover your bills for at least three months. That's hard, but even a small amount can help. Try to spend less on things you don't need, like that tall latte you buy every day. It all adds up, and you never know when you might need the money.
Set up a home equity line of credit. Unlike a home equity loan, which gives you a lump sum of cash right away, a home equity line of credit gives you cash that you can use a little at a time, only when you need it. If you don't take any money out, you don't have to make payments every month. But if something comes up, you'll have cash on hand. This can be especially helpful if you are out of work for only a short time. If you are out of work, your bank won't lend you money, so plan ahead and the money will be ready when you are.
When you need money fast, a little bit of planning can go a long way. If you plan now, you'll worry less about it later.
