Money and Work Resilience

This guide is general information, not individualized financial advice. Everyone's situation is different. For decisions about your own money, debts, taxes, or benefits, talk to a qualified professional, such as a nonprofit credit counselor, a fee-only financial planner, or your bank or credit union. General guidance.

An emergency fund is money set aside for unplanned costs, such as car or home repairs, medical bills, or a loss of income. Without savings, even a small shock can turn into debt that is hard to pay off.⁠^[1]

• How much? It depends on your situation. Think about the unexpected costs you have had before and what they cost, and set a goal from that.⁠^[1]
• Start small. Even a small amount gives some security.⁠^[1]
• Make it automatic. A recurring transfer from checking to savings, or splitting your paycheck by direct deposit, builds the fund without having to think about it.⁠^[1]
• Use windfalls. Saving all or part of a tax refund or cash gift can build the fund quickly.⁠^[1]
• Keep it safe, easy to reach, and separate from everyday spending. A bank or credit union account is generally one of the safest places.⁠^[1]
• Use it when you need it, then build it back up. Using savings instead of a credit card or loan keeps interest and fees from growing a one-time bill.⁠^[1]

Keep some cash at home, in small bills, in a safe place. In a disaster, ATMs and credit cards may not work when you need to buy supplies, fuel, or food.⁠^[4] A power outage can also close banks, ATMs, and gas stations.⁠^[9]

Cash can be stolen, lost, or destroyed, so keep only what you need at home.⁠^[1]

Keep savings in insured accounts. In the FDIC's words, "FDIC deposit insurance covers $250,000 per depositor, per FDIC-insured bank, for each account ownership category."⁠^[11]

• FDIC insurance covers deposits, such as checking, savings, and certificates of deposit, only at FDIC-insured banks. It does not cover investment products, even ones sold at an insured bank.⁠^[11]
• Check that your bank is insured with the FDIC's BankFind tool.⁠^[11]
• Credit unions: the National Credit Union Share Insurance Fund insures members' deposits at federally insured credit unions. Each member has at least $250,000 in total coverage.⁠^[12]
• Consider online and mobile banking services.⁠^[4] They let you reach your accounts if you have to leave home. General guidance.

• Tackle high-interest debt first. The CFPB describes two methods. The highest-interest-rate method pays off the costliest debts first, which can save you the most money. The snowball method pays off the smallest debt first, so you see progress quickly but may pay more in the long run.⁠^[16]
• Keep making at least the minimum payments on every debt while you focus extra money on one.⁠^[16]
• If you cannot pay on time, call your lender first. Contact your bank right away and discuss your options before skipping any payment.⁠^[4]
• Ask creditors to move due dates to fit when you get paid, such as your landlord, utility, or card company.⁠^[1]
• Heating and cooling bills: if you cannot afford them, contact the Low Income Home Energy Assistance Program (LIHEAP).⁠^[17] Each state runs its own program; the federal LIHEAP Clearinghouse can refer you to your local LIHEAP office.⁠^[18]
• Ask your utility about payment plans, budget billing, and shutoff protection. Many utilities have them. General guidance.
• Scammers use debt relief and student-loan offers to target people who are worried about money. Be careful.⁠^[4]

Know what your insurance does not cover. Review your homeowners or renters policy for every hazard you face.⁠^[4]

• Flood: most homeowners and renters policies do not cover flood damage. Flood insurance is a separate policy, available through the National Flood Insurance Program (NFIP).⁠^[25]⁠^[26]
• Buy it before you need it. There is typically a 30-day waiting period before an NFIP policy takes effect, with some exceptions.⁠^[26]
• Floods can happen anywhere.⁠^[26]
• Make a home inventory with photos, to support insurance claims.⁠^[27]

Protect your important documents. Ready.gov's Emergency Financial First Aid Kit (EFFAK), from Operation HOPE and FEMA, walks you through it.⁠^[4]

• Gather: photo IDs, birth certificates, Social Security cards, insurance policies, records of income and housing payments, tax statements, medical and prescription information, and contacts for banks, insurers, and doctors.⁠^[4]
• Store copies safely: in a safe deposit box, on an external drive, or in the cloud.⁠^[4] Protect cloud copies with a strong password and multifactor authentication.⁠^[27]
• Keep a copy in a waterproof, portable container in your kit.⁠^[28]
• Get benefits electronically. A disaster can stop the mail for days or weeks. Direct deposit also removes the risk of stolen checks.⁠^[4]

After a disaster, scam artists and identity thieves target survivors.⁠^[29]

• FEMA never charges a fee for an inspection, and federal agencies never charge for disaster help or for filling out applications.⁠^[29]
• Real FEMA inspectors carry an official badge and already have your nine-digit registration number. Ask to see the badge.⁠^[30]
• Never give bank information to someone who says they are a FEMA inspector.⁠^[30] Unsure? Call the FEMA Helpline, 800-621-3362.⁠^[29]
• The government will not call, text, or message you on social media about owing money or receiving payments.⁠^[4]
• Do not click links in texts or emails from people you do not know.⁠^[4]
• Contractors: use licensed local contractors with good references. Do not pay more than half the cost of repairs in advance, and get the job and guarantees in writing.⁠^[29]
• Ask people you trust for contractor names, then search the company's name online with words like "scam" or "complaint."⁠^[27]
• Report scams to local police, and to the FTC at ftc.gov/complaint.⁠^[30]⁠^[4]
• A family code word helps. If a caller says a loved one is in trouble and needs money, hang up and call that person or another family member yourself. General guidance.

No one can predict the job market. These are general principles, not career advice. General guidance.

• Hands-on skilled trades are harder to automate than routine desk work, and they are directly useful in a crisis: electrical, plumbing, heating and cooling, welding, machining, and vehicle repair. General guidance.
• Hands-on health care work, such as nursing assistants, medical assistants, and EMTs, is needed in every community. General guidance.
• Repair and food skills save money every week and matter most when supply chains break: fixing things, gardening, cooking from scratch, and preserving food. General guidance.
• More than one source of income makes a household less fragile. General guidance.
• Keep learning. Community colleges, apprenticeships, and employer training programs are often the fastest path into a trade. General guidance.
• Scammers use fake work-from-home job offers to target people worried about money.⁠^[4]