Rally faster after disaster with financial recovery kit
So far, 2020 has been a year of disruption for many Americans. Finances and lives have been upended by the mental, physical and economic effects of the coronavirus pandemic. And now, another threat looms: storm and wildfire season.
While you’re sticking close to home, take time to prepare your financial records and learn where to turn for help if natural disaster strikes.
By preparing your important documents during a period of calm, you can get a jump-start on your recovery.
“The sooner you start taking action, the better your outcome will be,” says Kate Bulger, director of business development at Money Management International, a nonprofit credit counseling agency. “There is no benefit to waiting — ever.”
You can prepare thoroughly by using the Emergency Financial First Aid Kit as a guide. The kit was created by the Federal Emergency Management Agency and nonprofit Operation HOPE. It provides checklists and forms you’ll use to gather important materials, such as:
Household information: These details will help you prove identity and apply for FEMA disaster assistance.
Financial and legal documents: These also can help with applying for assistance and reestablishing financial accounts.
Medical information: Having these details will help your family get proper medical care.
Contacts: This ensures you have a way to reach important personal, financial and service provider contacts.
The information to gather is extensive, but you’ll be glad you did so if an emergency hits. And if you get tripped up along the way, Operation HOPE provides help at 888-3884673.
Once you’ve pulled information together, make digital and physical copies to keep in secure locations. Store physical documents securely in a fireproof and waterproof safe or safe deposit box; upload digital copies to secure cloud storage for remote access.
No single governmental or nonprofit organization will be the key to your recovery; instead, you’ll likely have to tap several sources.
“When you’re talking about trying to come back whole from losing your home, job or any kind of natural disaster, it’s really going to take a variety of sources to get you whole,” says Regine Webster, vice president at the nonprofit Center for Disaster Philanthropy. She recommends making use of aid from federal agencies, but notes that you’ll need assistance from other sources.
Here are a few sources of aid in a disaster:
Government: FEMA and the Small Business Administration are two go-to government resources that offer aid and often work in conjunction with each other. Those who apply for FEMA assistance are often required to also apply for an SBA loan. Even if you’re not a small-business owner, SBA loans are available to you, since this is the federal government’s primary source of funds for longterm rebuilding of private property damaged by disaster. You’re not obligated to accept the loan if you qualify.
Direct assistance: This is the assistance typically provided by nonprofits, including the Red Cross. A free program called Project Porchlight, from Money Management International, can provide custom recovery plans and can help you maintain good standing with your creditors.
Community groups: Social media can provide up-to-date information about local aid.
Disasters can unfold in an instant; recovery can take months or years. To get through the hard moments, focus on long-term recovery goals.
“You’re going to have setbacks, and it can be hard,” says Bulger. “Just try to keep that momentum up.”