Here’s a great financial tip: Conduct an Emergency Financial Drill

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There is fear in the air.  As new layoffs are announced every day, more people become afraid that they will be next.  The question they ask themselves is  “How will I survive if I lose my job?”

That’s a good question, and one you should answer now, before the answer becomes urgent.  In the same way that you might prepare your family for a fire by having a fire drill, prepare your family for a financial disaster by having an Emergency Financial Drill at least once a year.

Things to check

Employment check:

Do we have up to date resumes?  This includes a stay at home mom.  If the husband loses his job, she should know what skills she has to take up the slack temporarily.

Do we have a list of business contacts who could help us find a new job if necessary?

What skills can we work on to make us more marketable in the job market?

Financial check:

If we had a job loss, or an unexpected bill, what bills could we immediately eliminate or reduce to save money?  i.e. cable, internet, cell phones, gym membership, etc?

Once those bills are eliminated, how much money will we need to survive each month?

How many months’ savings do we have?  How can we work towards having 7 months savings?

Do we have anything we could sell if we needed to? i.e. video games, television, etc.

If we still had our jobs, but encountered an unexpected bill, would it be feasible for either of us to take a second job?

Emotional check:

What is our plan to have a strong marriage and family, even during financially difficult times?

Resource check:

Do we have a supply of food that could carry us to the next month if we ran out of money?

Do we have friends or family members who will give us support in difficult times?

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