Welcome to this week’s edition of our Tuesday Top 5, Econ4U’s weekly tips post to help you manage your money in five easy steps.

In the wake of the earthquake in Haiti, it seems more important than ever to prepare yourself and your family for the possibility of an unforeseen natural disaster like a hurricane, blizzard, wildfire, or tornado. The American Red Cross offers its advice for the basics of preparedness, but what else do you need to be ready for anything? Read on for our take:

1. Update your homeowner’s or renter’s insurance. If you haven’t done so lately, take a minute to review your policy to make sure any new major purchases — like jewelry or a plasma TV — are covered under your existing policy. And remember that in some areas, flood, wildfire, or earthquake coverage can be extra.
2. Make an inventory of your assets. This is as important for natural disasters as it would be in the case of theft. Take photos of your most valuable possessions and keep records of serial numbers and appraisals in your safe deposit box.
3. Send copies of important documents to someone you trust. Preferably you’ll pick a friend or relative who lives in another state that wouldn’t be affected by the same natural disaster. Include copies of your bank account numbers, birth and marriage certificates, Social Security card, and a CD with a back-up of your most essential computer files.
4. Keep some cash on hand. If you already have an emergency kit (like the kind California recommends in case of earthquakes), make sure it contains enough cash to buy supplies in the event that ATMs are out due to a power outage — $500 should do the trick.
5. Set up an automatic payment plan for your regular bills. When disaster strikes, the last thing you want to worry about is when your bills are due and whether you’ll incur late fees for missing the due date. Set up BillPay for your mortgage, car loans, and other major bills and link it to a bank account that has enough to cover them for a couple of months (that’s what your emergency fund is there for, after all).

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