Four Simple Financial Steps to Take Today to Prepare for the Unexpected

When it comes to money, many of us are just happy to pay the monthly bills and have a little left-over to play with. Though it's not fun to think about, life comes at us and without a little foresight on the financial front, a financial disaster may be looming in your future.

On the bright side, there are several steps you can take to lighten the potential load and protect your financial future right now in the case of an unforeseen event such as a divorce, widowhood, or disability.

Following any of the four steps listed below will immediately put you in a better economic position and in many cases, those who may have to pick up some of the financial pieces will be grateful you took the time to prepare for the unexpected.

Make a record of your obligations. If you pay the bills, take time this month to record each one in a spreadsheet. Make note of payee addresses, phone numbers, account numbers, outstanding balances, and minimum monthly payments. Be sure to include electronic debits (such as car payments, health insurance, and so on) that may be deducted automatically from bank accounts or paychecks. Also include seasonal payments such as home owner's insurance or property taxes.

When you are finished recording, store the information in a safe place such as a safety deposit box or fire-proof safe. Let your significant other, and one other person of your choice, know where this information is stored.

If you do not pay the bills, ask your partner to make the list or actively involve yourself in the bill paying process for one month.

This simple step can save a lot of time, financial hazards (such as late payments/foreclosures/etc.) in the event something happens to prevent you or your significant other from carrying through with monthly obligations. This step will also give you a clear picture of your expenses and as a side result, you may find areas where you can cut expenses too.

Pay off as many obligations as possible. Not only will this help your pocket book and possibly your credit score immediately, but it will make matters that may arise in the future less complicated. Forego the daily latte or visit to the donut shop and use the money you save to pay down your credit obligations. Even $20 a month extra will make a dent over time, bringing you closer to financial freedom and leaving less obligations for you or your family to deal with in the event of a crisis.

Obtain credit. Perhaps a funny suggestion to make after just suggesting that you pay off your obligations, but, if you do not have any credit in your name alone, you could have problems accessing funds in the case of an emergency or unforeseen events. It's also a good idea to have a checking account with your name as the primary holder and to be sure that all your bank accounts are joint ones.

Make a record of important family information. Up to date records are crucial to have for many reasons, but are particularly helpful when dealing with unexpected events. Make a list of the following items today, if you do not have one already:

1) Bank account numbers (including investment accounts,) bank address & phone, and any passwords on the account

2) Bond numbers, amount, and maturity date

3) Stock certificate numbers, amount, and company information

4) 401K plan numbers, company address & phone, and any other pertinent information

5) Insurance policy numbers, company address & phone, and designees

6) Automobile and recreational vehicle VIN numbers and location of titles7) Add additional information as it pertains to you, such as business holdings, tax id numbers, and so forth.

When you are finished recording, store the information in a safe place such as a safety deposit box or fire-proof safe. Let your significant other, and one other person of your choice, know where this information is stored.

You may also wish to store wills, tax records, automobile titles, marriage certificates, and other items of significance in the same location.

A little foresight will go a long way towards helping to deal with unexpected events as they arise, for you, or for your loved ones.