How to Financially Prepare for an Emergency or Pandemic
Last updated: October 27, 2026 by the TCA Financial Editorial Team. This guide was first written during the 2020 coronavirus outbreak and has been updated into a general guide for any health emergency, disaster or sudden loss of income.
A pandemic, a storm, a layoff or a long illness can all hit your finances at the same time as everything else in your life. You cannot plan for every crisis, but a few steps taken ahead of time make any of them easier to get through. Here is how to prepare your money, your paperwork and your household for an emergency.
Quick checklist
- Start or grow an emergency fund, even a small one
- Keep a little cash at home in small bills
- Gather important documents in one safe place
- Build a basic supply kit, including prescriptions
- Know your bills, due dates and who to call
- Avoid panic decisions with your investments
- Get news from reliable sources
1. Start or grow an emergency fund
An emergency fund is money set aside for unexpected expenses or a drop in income. Even a few hundred dollars can cover a car repair, a medical copay or a short gap in pay without new debt. Set up an automatic transfer into a separate savings account on payday; the CFPB notes that automatic recurring transfers are often one of the easiest ways to save consistently (CFPB). Start small, then raise the amount when a debt is paid off or your income goes up. Our guide on how to raise cash for emergencies covers what to do if you need money before the fund is ready.
2. Keep some cash at home
In a disaster, card readers and ATMs may not work. Ready.gov, the federal preparedness site, recommends keeping a small amount of cash at home in a safe place, in small bills, so you can buy supplies, fuel or food when electronic payments are down (Ready.gov).
3. Gather important documents
Collect the papers you would need to prove who you are, file an insurance claim or apply for help: IDs, Social Security cards, insurance policies, bank and loan account details, medical information, property records and key contacts. Ready.gov’s Emergency Financial First Aid Kit is a free checklist for organizing them (Ready.gov). Keep copies in a waterproof container and a secure digital copy.
4. Build a basic supply kit
After an emergency you may need to manage on your own for several days. Ready.gov’s basic kit includes water (one gallon per person per day for several days), at least a several-day supply of non-perishable food, a battery-powered or hand crank radio, a flashlight, a first aid kit and extra batteries (Ready.gov). For health emergencies, add soap, hand sanitizer, disinfecting wipes and a supply of your prescription medications. Buy a few items at a time when they are on sale, rather than all at once in a panic when prices and shortages peak.
5. Know your bills and who to call
Write down every regular bill with its amount and due date, and note the customer service number for each. If your income drops, call lenders, landlords and utilities early: many have hardship programs, payment plans or due date changes, and they are easier to arrange before a payment is missed. Put essentials first: housing, utilities, food, medicine and transportation to work.
6. Avoid panic decisions with your investments
Markets can swing sharply during a crisis. The right mix of investments depends on your time horizon and how much risk you can accept, and it is a personal decision (Investor.gov). If your plan already fits your goals and timeline, selling in a panic can lock in losses. Money you may need within the next year or two belongs in savings, not in the stock market.
7. Get news from reliable sources
During a public health emergency, follow official sources such as the Centers for Disease Control and Prevention (CDC) and your state or local health department, and set limits on how much news you take in. Constant updates can raise anxiety without giving you anything new to act on.
Frequently asked questions
How much should I have in an emergency fund?
Any amount helps. Start with a small goal, such as enough for one unexpected bill, then build toward covering a few months of essential expenses over time.
Should I keep cash at home?
A small amount in small bills, kept somewhere safe, is useful when power or card systems are down. Keep the rest of your savings in an insured bank or credit union account.
What if I cannot pay my bills during an emergency?
Contact each company before the due date and ask about hardship options. Avoid high-cost borrowing such as payday loans where you can: a typical $15 fee per $100 for two weeks is an APR of about 391%.
This article is general information, not financial, medical or investment advice.