Key Takeaways:

• Build an emergency fund today; start small and work your way up

• Create a financial emergency plan, so you know how and where to access your money and information

• Protect yourself against fraud during an emergency

An emergency can hit at any moment. While it’s difficult to be prepared for everything, there are a few things you can do now to get ready, financially, for when and if an emergency does happen.

September is National Preparedness Month — a time to look at how you can take small steps that make a big difference. Being prepared doesn’t just mean having a bag of supplies ready; it means being ready for anything that comes your way. An emergency could be an accident that causes you to miss time at work or a car crash and the unexpected expenses that pop up because of it.

Being financially prepared adds stability and protection to your life, so you’re ready for whatever comes your way.

How do you build an emergency fund?

One of the most important steps you can take is to build an emergency fund. The general recommendation is to have six months of living expenses saved up. Here is how to create that fund:

• Add your necessary monthly expenses, including rent, food, insurance, etc. and multiply it by six to get your target number.
• Start small. Set aside $25, $50 or $100 each month. If you’re able to, set it up as an automatic transfer or direct the amount from your normal paycheck into a separate savings account so you don’t have to take an extra step on payday.
• Keep your money in an account that’s separate from your daily checking account so it’s out of sight. It’s even better if you can put it into an account like a Certificate of Deposit so it’s earning interest while waiting to be used.

Annual merit increases and bonuses can also be a time to bolster your savings. If you’ve successfully managed your expenses on your current salary, consider directing some or all of your increase toward that savings fund. By saving money before you become accustomed to spending it, you can steadily build long-term financial security with minimal impact on your day-to-day budget.

What’s in a financial emergency plan?

If disaster strikes, it’s important to know where all your money and financial documents are and how to access them. There are a few things you should have in your emergency plan:

• Contact information for your bank and other financial institutions.
• Store copies of insurance policies, identification, bank account details and medical records in a secure box or encrypted digital folder.
• Calculate your monthly costs for housing, food, utilities, insurance, transportation and minimum debt payments.

Review the tools your bank offers, like mobile or digital banking, periodically if you aren’t already using them. You don’t want to be trying to sign up or sign in for the first time in months if you’re trying to access your information quickly.

How do you protect yourself from fraud during an emergency?

During an emergency, you are often at your most vulnerable, and fraudsters may try to take advantage of your situation. Here are a few ways to protect yourself:

• Be wary of anyone asking for urgent money requests.
• Don’t click on any links you are unfamiliar with.
• Vet each organization you’re working with to ensure they are legitimate.
• Use strong passwords.
• Enable multifactor authentication.
• Keep your devices updated.

At Sunrise Banks, we will never ask for passwords, PINs, one-time passcodes or other secure login credentials. Any request for this information should be treated as a scam. If you suspect you’re a victim of fraud, report it immediately so your financial institution can act quickly.

Sunrise Banks has fraud prevention tools and resources available for all customers to monitor activity and identify suspicious transactions quickly.

Being prepared happens one step at a time. Start small today and build habits that will set you up for long-term success.

Visit sunrisebanks.com Off Site Link to check out our tools to help you with budgeting, saving and protecting your money.

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