Have you been affected by this tough economy? Maybe you've lost your job, suffered unexpected medical bills, or credit cards are mounting. Whatever the situation, a financial emergency is an incredibly stressful situation. How will you get back on your feet? Where will the money come from, and what bills should you pay first? These aren't easy questions to answer, but if you approach the situation carefully you can make the best of it.
Even if you're not faced with a financial crisis right now, it's never too early to start planning for one. Learn how to create an emergency fund, what types of insurance you should have, and how to prepare for the unexpected. Find out more about planning for a financial crisis.
Just to piggyback on your post (good post I might add), a good way to create an emergency fund is to get a HELOC (home equity line of credit). Make sure you can find one that has no fees to get started and will cost you NOTHING unless there is a balance on it.
For example: A tree falls through your roof during a hurricane. Well, you live in Florida and a lot of trees fall through a lot of roofs that day and you phone your insurance agency who says you can expect a check in three to five months.
What?
So that means until you get that check you will be without a roof unfortunately. If you have a HELOC you can pay for everything that day, and when you check comes, use that money to pay off your HELOC so you don’t get dinged with interest charges.
I’m not trying to promote HELOCs, but it’s a great way to keep an emergency fund if you are in a natural disaster area.