Economic preparedness
Money is a preparedness supply too. Build it the same way: a little at a time.
Job loss, illness, a disaster, or a price spike can hit a household's budget faster than any storm. An emergency fund, a little cash at home, the right insurance, and a rotating pantry soften the blow. Utah's home-storage culture already includes a financial reserve.
Why it matters in Utah
- In April 2020, the U.S. unemployment rate hit 14.7% (preliminary), the highest since 1948. Utah's was 9.7%, a record for its series but among the lowest of any state. BLS (opens source in a new tab)
- Consumer prices rose 9.1% in the 12 months ending June 2022, and food at home rose 12.2%. BLS (opens source in a new tab)
- Church of Jesus Christ home-storage guidance pairs a three-month supply of food with a financial reserve built little by little. Church home storage (opens source in a new tab)
- A common rule of thumb is an emergency fund of 3 to 6 months of essential expenses; start smaller and build. CFPB (opens source in a new tab)
Who's most affected
- Self-employed, gig, and event-based workers, whose income can drop to zero quickly.
- Single-income households and households with high fixed costs.
- Anyone without health, disability, or renters/homeowners insurance.
What to do
1 Before
- Start a starter buffer ($500 to $2,000, or one month of essentials; estimate), then work toward 3 to 6 months. CFPB (opens source in a new tab)
- Keep about two weeks of essential spending in small bills at home (estimate). Keep it secure, and don't hold large amounts. Ready.gov (opens source in a new tab)
- Store copies of insurance, IDs, deeds or leases, and account info in a waterproof folder and an encrypted cloud folder. Ready.gov (opens source in a new tab)
- Review insurance: health, disability, renters or homeowners, flood, earthquake, and life. Ask your agent what is and isn't covered.
- Rotate food storage: buy staples at normal prices and eat them in rotation. Church home storage (opens source in a new tab) USU Extension (opens source in a new tab)
- Know how to file for unemployment before you need to. Utah DWS (opens source in a new tab)
2 During
- Contact lenders and utilities early about hardship options.
- Live on your pantry to stretch cash, and pause nonessential spending.
- After a declared disaster, SBA disaster loans can help homeowners, renters, and businesses. SBA (opens source in a new tab)
3 After
- Rebuild your buffer first, then restock storage.
- Write down what you learned and adjust your plan.