The key to financially surviving a disaster is having a solid financial plan in place before calamity strikes, says Hocutt. A financial plan is a comprehensive strategy based on your current financial position and future financial goals that safeguards your long-term economic interests against life's surprises.
People often don't consider that disaster can bring incapacitating injuries or that they'll be too emotionally devastated to work, says Hocutt. A financial plan operates such that if one source of income is eliminated or interrupted, another steps in to fill the gap. Life, health and disability insurance, as well as estate, investment and retirement planning, are all fundamental components of the plan.