Putting plans in place for a financial emergency could help you navigate a storm when it happens. Industry super fund-owned bank ME explains the steps to take.

1) Know which expenses you can cut
When you’re in the midst of a crisis, it can be hard to think clearly about which costs you can afford to trim. Having a list prepared ahead of time can make important decisions easier. Your contingency plans could include dropping your gym membership, skipping your daily latte and avoiding Friday night take-outs.

2) Start to build savings now
In a crisis every penny counts, but why wait for crunch time? Start sweating the small stuff today to grow a pool of emergency money. Make savings easy by setting up an automatic transfer of funds from your everyday account into a high-interest savings account.

3) Keep short-term cash accessible
In a crisis you need cash fast. Think about the best place to store your cash so that it’s earning a healthy return while still being available when the money is needed.

4) Get your partner on board
One in two Australian couples admit to disagreeing about money[1]. Yet working from the same page can be critical to helping you survive an emergency. If you’re in a relationship, take the time to discuss emergency plans and arrive at a strategy you both agree on.

5) Know who to talk to
A problem shared can be a problem solved. When a crisis strikes, make your lender an early port of call. It’s in their interest to help you renegotiate a payment plan.

This article is brought to you by ME. For more information, please visit www.mebank.com.au

Members Equity Bank Limited ABN 56 070 887 679.

[1] https://www.finder.com.au/press-release-jul-2017-heated-conversations-1-in-2-aussie-couples-argue-about-finances

 

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