Growing up in a rural community during the 1980's, "disaster" was a word we rarely heard, and when we did it typically came out of history classes. Sure, there were tornadoes in other states and a few hurricanes would hit the south east each season, but my generation lived relatively worry free early on.

How times change. Since 2001 we have seen terrorist attacks, followed by instability in the Middle East. As if the constant threat of a terrorist attack weren’t enough, an unprecented number of hurricanes now threaten our shores, one of which will be a part of our lives for years to come.

As we have watched a painfully slow recovery following Hurricane Katrina from the comfort of our living rooms, thousands have had their lives destroyed. Many of those who survived have no jobs or homes to go back to, and many still live in temporary housing or reside in another area all together.

We should all take this time to think about how this would affect us financially. If the unthinkable does happen, money will be the last thing we want to think about, but it will play a huge role in how we are able to protect ourselves. There are some things you can and should do now:

Emergency Fund

A large part of this site will focus on budgeting, mainly because it is the foundation to building true wealth. As it pertains to emergencies make sure you have 6-9 months living expenses set aside. This needs to be liquid and not in the stock market, real estate, or any other hard to quickly access fund. Don’t count on insurance or the government to offer quick relief for food, mortgage payments, car payments, or other monthly bills. Keep this in a general savings account, or a safe money market account.

Though it does not need to be a significant portion, keep some cash secured so that you can buy the essentials. If power is knocked out or if banks are not operating, credit cards are not dependable for the immediate future. Nothing trades like cash.

If starting from nothing for this fund, don’t let it be overwhelming. Start small by setting as little as $100 per month, and make it an automatic deduction from your check or transfer from one bank account to another. Even with other investments and monthly expenses, chances are it will not be noticed. With even the most basic interest rates, it is amazing how soon the goal will be realized.

Financial Records

In the event of a disaster checkbooks and computers may be destroyed or left behind. Make sure to backup your records on disc or a USB flash drive, which are both affordable. Invest in a fireproof safe and keep backups there in case of flood or fire.

In addition, take advantage of web-based access that almost all financial institutions offer today. Records can be accessed from anywhere should you be forced to leave home. It is also possible to set up bill pay online, so taking care of monthly expenses can be done with a few clicks. This will keep financial life to a minimum during a stressful personal time.

Create a Will

Creating or updating a will is not a fun task and most people put it off. However, making sure loved ones are taken care of should be a top priority. Ignoring this task can cause loved ones to endure costly court proceedings to have your wishes followed out during an emotional time.

Putting a will in place is easy for everyone, as there are a number of generic templates that can be purchased for cheap. If you aren’t sure what is needed in your case, see an attorney. Having the base template to work off of can still save in legal bills as it prevents the attorney from doing a complete draft.

Make sure to keep documents updated as life changes, and make sure loved ones know where to find them. As mentioned, keep documents in a secure place like a safe or a safety deposit box at your bank.

Hopefully there will not be a need to use a will or emergency savings. Though should the time come, the above tips will be extremely valuable.