Are you Financially Prepared for an Emergency?

Just when you think you have everything figured out with your finances, an emergency pops up and gets in the way. From a medical bill to a car repair, you never know what the future holds.

It is important to be financially prepared for any and every emergency that could come into play in the future. It doesn’t matter how you do this, as long as you take the right approach.

Here are three of the best ways to prepare for an emergency:

1. Keep an emergency account. As the name suggests, this is money you use only if you have an emergency. Otherwise, the funds sit in the account. It may be tempting to spend this money, but remind yourself that it could come in handy in the future.

2. Apply for a credit card. If you don’t already have a credit card, it may be a good idea to apply for one. Of course, this only makes sense if you are responsible enough to use the card only when an emergency arises.

3. Cash on hand. You don’t want to keep too much cash in your home, but it’s something that can come in handy for minor emergencies. For example, it is nice to be able to hand $100 to a plumber to fix a leak. Or maybe you use the cash to pay a copay if you have to visit the emergency room.

You may think you are financially prepared for an emergency, but you never know for sure until you review your finances and answer a few key questions.

If nothing else, consider which one (or more) of the strategies above will suit you best.

How have you financially prepared for a potential emergency?