It’s not a matter of if, but when an unexpected financial emergency will occur.

So the best way to deal with one is to prepare for it in advance. Below are two extremely effective and relatively easy steps that can help you prepare so that when something does happen, your financial strategy isn’t thrown into disarray because of unplanned expenses.

Start an emergency fund.

Your first goal will be to save up enough money to cover six months of expenses. Then when a small emergency crops up, you’ll be able to dip into this fund. But beware! You’ll need to discern what counts as an emergency—going out to eat because you don’t feel like making dinner or going shopping because there’s a great sale going on doesn’t count!

Make sure you have the right insurance.

Not every issue can be solved with a simple emergency fund; serious medical issues, disability, or death can all cause financial trouble that may fall well beyond the scope of an emergency fund.

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There are three things that you need to consider: health insurance, disability insurance, and life insurance. They can help provide protection for your family if you become unable to work or if hospital bills threaten your cash flow.

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If you feel unprepared for a financial emergency, contact Carlos Roman Financial Coach. He will have insights into how you can create an emergency fund, and help you evaluate your options for financial protection.