You and Your Money: A No-Stress Guide to Becoming Financially Fit

17Preparing for Disasters

All who have been in the direct path of a natural disaster have felt its effects both in their souls and in their livelihood. Other disasters can also strike without warning and be just as devastating. Divorce, a sudden casualty or death in the family, collapse of a business, an official finding of liability, can sweep away investments, dry up savings, and even drain your cash on hand. Despite our best planning, the fruits of anyone’s life’s work can disappear in the wake of a financial tsunami—whether caused by nature, the general economy, an accident, attack from out of the blue, or by personal circumstances.

While it is true that some disasters—an earthquake, flood or hurricane—cannot be avoided, there are actions ...