The coronavirus pandemic was a prime example of how something unexpected can have a devastating effect on the economy on a large scale and also on an individual level.
While we all hope the worst of it is over, here's how to prepare if it isn't as well as set up a fund for unexpected future national emergencies.
Part of being prepared for any contingencies, big or small, is having a stock of emergency cash at your disposal at all times.
While you can't rely on accessing your funds electronically, you'll need some legal tender to buy food, gas or other necessities.
"Whether it's Mother Nature or some other disaster that's out of your control, you always want to be prepared with some emergency cash."
"Banks and ATMs may not operate for days after a strong storm. I recommend that my customers have three to five days to spend money, just in case."
To decide how much to save for an emergency fund, you need to ask yourself a few questions. How much amount will I need for a highly catastrophic event? How much can I save?
"Individuals should be prepared to pay out-of-pocket for essential or non-discretionary expenses." Keep $1,000 to $2,000 in cash in case banking operations are closed due to disaster."
Even if you can't save much, it's better to save some than to save nothing. So if you can only set aside $1,000 for an emergency fund, it's better than not saving at all.
Keep in mind that in a national emergency, inflation will increase, demand for necessities will increase and pricing will likely increase.
With all this in mind, in addition to your regular emergency savings, you should prepare enough to cover the following costs in the event of a national emergency.
Cash can be your greatest protection against a national emergency or disaster if circumstances prevent you from withdrawing cash from the bank.