3 Ways Your Emergency Fund Is Vital After A Natural Disaster
Emergency funds can be incredibly helpful in many situations. While many put away money to deal with car or health issues, some forget that a rainy day fund might best be used after a truly rainy day.
If you are caught in the path of a natural disaster, you may need to use your emergency fund in the situations below.
Escape
In many cases, the best way to deal with a natural disaster is to get out of the way. Unfortunately, many people get stuck in the path of a disaster simply because they do not have enough money to travel.
If you know a disaster is on its way, it’s a good idea to dip into your emergency fund to get away. If you were stuck due to an unexpected disaster, it’s still a good idea to use that fund to travel in order to stay clear of the relief efforts. Sometimes, all you can do is go elsewhere and hope for the best.
Getting Supplies
You may also need that emergency fund to help you get the necessities after the disaster. While relief efforts often help survivors to get what they need for free, this isn’t always a given.
If the disaster didn’t knock out a city’s infrastructure, it is likely that the necessities of daily life will still have a price tag attached to them. At the very least, your emergency funds will give you a lifeline while you wait for relief efforts to get to your area. Having a little extra money to buy food and water can make a huge difference.
Waiting on a Check
You’ll also need your emergency fund to tide you over until insurance starts reimbursing you for your losses. While your insurance cover can and should help to deal with issues like lost or destroyed property, insurance companies are rarely in a hurry to pay out on their policies.
In some cases you will need a lawyer to help you get compensation for damages after a disaster. As you wait for their financial help, you can start replacing and repairing what you need to get your life back together.
You can use the insurance checks to replenish your emergency fund when they arrive, but until then you can get to work on putting your life back together.
Natural disasters are the perfect reason to use an emergency fund. Whether you are getting clear of the site, buying supplies or just picking up the slack until insurance helps out, your emergency fund can be an important lifeline. Your emergency fund should have been designed for just this type of situation, so don’t feel badly when you need to make use of it.
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Category: Family Finances
