(06/21/2010) It’s officially summer and hurricane season is here.  Preparing for natural disasters like hurricanes can yield big dividends if done effectively.  The same rule of thumb goes for financial preparedness as well.  Informa Research Services offers some tips - inspired by the National Hurricane Center’s preparedness list (Source: http://www.nhc.noaa.gov/) - to help avoid a financial disaster this summer:

Develop a Plan and Inform Your Family
Teach everyone in your family finance basics.  Building good saving and spending habits at a young age will benefit down the road.  Another way your family can help your finances grow is by keeping you accountable and honest.  If you tell your family that you are trying to cut down on your spending this month, they can support your goal and help you achieve it.  After all, no one succeeds alone.

Create Disaster
You should always have an emergency fund available in case unexpected events arise.  If you don’t already have one built, start now.  When it comes to building an emergency fund, it’s better to start late than never.  Schedule automatic transfers so your emergency fund continues to receive regular contributions.  Moreover, to make the most of your savings, make sure to find a high yield savings account.  Neglecting to do so is like turning away free money.

Secure Your Home and Have a Safe Place to Go
To help ensure you can always make your mortgage payment, right now might be a good time to look into refinancing your home loan.  Rates are still low and refinancing to a lower rate could save you thousands of dollars over the term of your loan.

Some natural disasters cannot be prevented, but being well-prepared can help lessen the damage they cause.  Even on the darkest days, remember there are sunny days ahead.

Other articles:

Turn to Short Term CDs and Promo Rates in Low Rate Environment

Look Online to Kick Off Your Savings the Right Way

ERATE.com’s iPhone App Puts the Best Rates Right at Your Fingertips

Keep Your Finances Healthy in Just 10 Minutes a Day