How to Financially Prepare for Emergencies and Natural Disasters

We can't predict when disaster will strike, but we can plan for it. From blizzards, floods, and power outages to medical emergencies and job loss, unexpected events can shake up your life and your budget. That’s why every September, National Preparedness Month reminds us all to prepare ahead of time to protect our families, homes, and finances.

Whether you're just getting started or fine-tuning your plan, American Heritage Credit Union is here to help you stay one step ahead. Learn what resources are available to help you prepare for the unexpected. Here are some tips you can follow to be financially prepared for whatever comes your way.

1. Build an Emergency Fund for Peace of Mind

If your roof leaks during a storm or you need a sudden car repair, would your savings cover it? You're not alone if the answer is no. Building an emergency fund isn’t about perfection; it’s about preparation.

Start small and stay consistent with these tips:

• Open a dedicated savings account just for emergencies
• Pay yourself first by setting up automatic transfers; even $20/month adds up
• Use our Savings Goals Calculator to visualize your progress
• Stick to a budget by using a plan like the 50/30/20 Rule
• Keep at least three to six months of living expenses in your emergency fund if possible. It's your financial safety net in case you face something like a job loss, medical issues, or unexpected repairs.
• Make sure you eventually have enough money to cover your insurance deductible in your emergency fund.

If you’re seeking an account option for your emergency fund, our High-Yield Savings Account is a perfect option to explore. Aside from peace of mind, you also will receive earnings on top of your funds! If you don’t quite meet the balance requirements yet, this account is a great goal to aim for.

2. Use Your Home Equity to Prepare and Protect

If you're a homeowner, your house isn't just shelter; it's also a valuable financial resource. Home equity refers to the difference between your home's current market value and the remaining balance of any loans (such as a mortgage) that you still have for it. You can tap into your home's equity with a home equity loan or home equity line of credit (HELOC) to:

• Upgrade for safety, like installing a backup generator, storm shutters, or a new roof
• Make repairs after storm or water damage
• Consolidate debt to lower your monthly expenses

American Heritage offers flexible options, including:

• Fixed-rate home equity loans, which are ideal for set project costs
• Platinum Fixed-Rate HELOC, which has flexible access with predictable payments
• Interest-only HELOCs, which minimize payments during the draw period

Not sure which one is right for your situation? Speak to one of our loan specialists for personalized guidance.

3. Protect Your Home With the Right Insurance

Your home is likely your biggest investment. A solid insurance policy protects it from the unexpected, including fire, theft, flooding, or storm damage. American Heritage members can get exclusive discounts on home insurance through Liberty Mutual, provided by TruStage™.

Make sure your coverage includes:

• Natural disasters common in your area
• Adequate protection for belongings and valuables

To add an extra layer of protection, document your home's contents and keep important documents in a waterproof, fireproof container, or back them up digitally.

4. Create a Financial Emergency Kit

Emergencies often come with little to no warning. Keep a physical or digital kit on hand with your essential financial documents so you're ready to respond fast. Include:

• Copies of IDs and insurance policies
• Account numbers and login info (securely stored)
• Emergency contact list
• Recent pay stubs or tax documents
• Home inventory list and photos

Remember to store copies in a safe, waterproof box, in digital files (and back them up to the cloud), or in a secure online vault. For your passwords, consider using a secure password locker application.

5. Empower Those Around You

Preparedness doesn't stop with you. Use this month to:

• Talk to your kids about safety plans
• Help older family members set up savings accounts
• Check in with neighbors and share resources
• Encourage your workplace or homeowners association to review emergency procedures

Being prepared gives you power and peace of mind. You'll ensure a safer space and frame of mind for yourself and those around you by making sure everyone is prepared.