It can be really hard to get by money wise in nowadays fast lifestyle.  Mortgages, car bills, huge credit card debt, and large phone or IP telephony bills. Lots of people find it hard to get by every month.  With most people doing whatever is possible just to cover their bills, a very small percentage of people have arranged for the improbable incident of a financial tragedy because of financial planning mistakes.

They can appear in a lot of forms; a big storm such as Hurricane Katrina, losing your job, or an unexpected illness can be the end for anyone who isn’t well equipped for such a sudden disruption in their monetary life.  But it isn’t that tricky to prepare yourself in times of a cash crisis.  All you need is some planning, because none of us want to get into a situation of being in too much debt, and certainly we’d want to avoid repossession of things we couldn’t pay off like our car or flat-screen TV.  No one wants to have to get car repossession help – we all want to keep our wheels.

Here are a few things that can help you prepare for anything unexpected:

Get an ATM/Debit card – You may not frequently use cash or need a debit card, but there are some scenarios where it could be critical. Many People living in New Orleans who were temporarily displaced by Hurricane Katrina would have made good use of having ready access to money even while not at home.  If you don’t use one often, I recommend getting one nonetheless and keeping it in a safe place.

Sign up for direct deposit. With direct deposit, you will know that your salary will go directly to your bank account even if you can’t actually get to your bank.  This will assist in the result of sickness or any other disaster that could leave your local bank closed for the time being.

Sign up for online bill paying – You can pay bills even when you’re not at home by the use of the Internet.  You don’t necessarily have to, but it could be useful at a time when you least expect.

Save a little emergency cash. Experts advise that you save at the very least three months of financial costs.  It may be easier said than done, but everything, no matter how small can help.  Try to reduce a few unnecessary things, like that expensive coffee you buy on the way to work.  It all adds up, and you could need all the money sometime.

Try setting up a home equity line of credit – contrasting from a home equity loan, which gives you a lump sum of cash immediately, a home equity line of credit gives you cash you can use a little each time, and only when it’s needed.  If you don’t take anything out, you won’t get monthly payments.  But if an emergency occurs, you’ll have cash ready.  This can be very useful if are out of work for a short amount of time.  Your bank won’t let you borrow money if you’re out of a job, so plan ahead so the money will be there when you need it.

A small amount of financial planning can go a long way when a monetary emergency occurs.   If you have little ones, you may want to look into inheritance planning now, just to make sure they are financially protected.  If you plan ahead now, you will have less to worry about later.