Here's How to Create an Emergency Binder for Your Family

65 percent of Americans don’t have an emergency plan. Most are under-prepared. Unfortunately, when things go bad, it tends to get worse. Here’s how to be more than average by creating your own Financial Emergency Binder.

Don’t wait until the moment hits to react. Take control of the wheel today.

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Plan on Everything Not Going to Plan

I recently chatted with one of my best friends on the subject matter. As a newlywed and soon-to-be father, I nudged him toward getting a term life insurance policy to protect his wife and kid.

There it was, the moment that meant everything.

While modern life is saturated with social media, overexposed glamour wedding pics, the “I just purchased an unaffordable home” pic, and the like, the real important stuff gets swept under the rug.

If you passed away unexpectedly, your family would still have to maintain day-to-day and pay off your liabilities. You need to have a plan. Having all your important documents in one place is a huge mental and emotional relief.

This is not in preparation for the worst, but a preparation for the best possible outcome. Know that you know why, here’s how you can create your own Emergency Binder.

An Emergency Binder? What is that?

An emergency binder is essentially an all-in-one binder, container, or safe with everything you would need for you and your family in the event of an emergency.

Think of it like a loot box. Or better yet, think of it like an Amazon delivery shipment filled with all the important documents. This can and should include your medical information, passwords, financials, insurance information, and even emergency cash reserves.

Do you really need a Binder, Brief, or Case for this stuff?

Simply, Yes! You need a full-on binder. As you begin to accumulate all these documents, a paper clip just won’t cut it. Additionally, if you are a millennial who thinks you can keep it on your phone or online, think again.

Consider the what-if scenarios.

What if your phone runs out of battery or you lose it at sea? Worst yet, what if you slip into a comma and no one knows your password?

A safe is the best bet to protect your binder. And you can still use your precious cellphone as a backup location.

While we can’t control natural disasters, if 2020 taught us anything, it is to be prepared. Don’t wish for or expect the worse, but absolutely be prepared for it.

Being an Asset in an Emergency vs Psychological Liability

This binder will be a big relief when your family needs it. This is why you need all hands on deck to create the binder. Even the kids need to be accountable for the plan.

Ready to put your own emergency binder together? You will need the following:

Household information (including children and pet information)
Information for non-parent caregivers, other friends, and family
Medical and Financial information including Passwords
Key personal documents and legal documents
Health, Home, Car, and Life insurance plan information
Key employer information to brief them
Investment Portfolio and even Crypto Wallet information
Wills, Estates, and Burial information
Personal notes, etc.

While this will be a taxing experience at first, in the end, it will be priceless in the clutch.

How to Organize the Emergency Wealth Binder

Emergency contacts: This includes phone numbers and other contact information such as family members, doctors, lawyers, veterinarians, school contacts, utility companies, etc.
Legal records: Drivers license, state identification, passport, social security card, gift certificate, visas, foster records, adoption papers, marriage license, power of attorney, house deed, vehicle registration papers, etc
Medical information: Such as prescriptions, allergies, medical history, immunizations, etc
Financial information: Like account information, investment information, safety deposit information, etc.
Miscellaneous: Pieces of information such as evacuation checklist, spare keys, maps, cash, storage drives, USB, etc.

The biggest consideration here is organization. Take lessons from a grade school teacher, and make them colorful and fun. The documents work better, arranged by item type. And leave plenty of notes or a cover page sleeve (if necessary).

Personally, I’m leaving letters of joy as my grandma did.

Where to Keep Your Emergency Binder

You want to keep your emergency binder in an easy-to-access place. Additionally, you also want to make sure that the space is fireproof, waterproof, and won’t get damaged easily.

Quality small safes can go as low as $68 (see Amazon Link). If you are wealthy, you might want to consider a safety deposit box. Or you can check out virtual lockbox space such as FidSafe, Fidelity’s virtual safe deposit box.

Turns out it’s FREE!

Where you want to place it ultimately doesn’t matter. What you need to consider is who has access to it and do they know where it is.

Planning for the Plan to Go Well When Everything Isn’t

The entire goal of this exercise is to help the family in case of an emergency. Having the right documents at hand can ease tension, depression, and financial anxiety. As a bonus, this is also the cheaper alternative for your family.

When things aren’t going according to our heart’s desires, it can be tough and jarring. However, this is a lifeline to help destress and lessen confusion at the moment. You have to have a family plan and an emergency binder.

It’s non-negotiable since death is certain and permanent.