When people think about emergency preparedness, they often focus on batteries, bottled water, and first aid kits. While those essentials are important, there’s another type of preparedness that deserves equal attention: financial preparedness.
September is National Preparedness Month, making it the perfect time to review your financial emergency plan and ensure you’re ready for unexpected expenses. Whether it’s a major home repair, an unplanned medical bill, a temporary loss of income, or a natural disaster, having the right financial tools in place can help you navigate challenges with greater confidence and less stress.
Here are a few steps you can take this month to strengthen your financial emergency preparedness:
1. Build and Maintain an Emergency Fund
One of the most important components of any financial emergency plan is an emergency fund. Having dedicated emergency savings can help cover unexpected expenses without disrupting your everyday budget or forcing you to rely on high-interest debt.
Financial experts often recommend saving enough to cover three to six months of essential living expenses. But even small, consistent contributions can make a meaningful difference over time. To start building your emergency savings account:
- Set a monthly savings goal and automate contributions.
- Direct a portion of each paycheck into savings.
- Deposit tax refunds, bonuses, or other windfalls into your emergency fund.
- Gradually increase contributions as your budget allows.
Digital Banking tools have made saving easier than ever. With Advia’s My Savings Goals, you can create customized savings targets, schedule automatic transfers, and track your progress right from your phone or computer.
2. Know Your Credit Before an Emergency Happens
In an emergency, access to affordable financing may become important. That’s why understanding how to improve your credit score before a crisis occurs can help you prepare for future borrowing needs.
Tools like SavvyMoney, available on Advia Digital Banking, allow you to monitor your credit score and receive personalized insights to help improve your overall financial health.
Regularly reviewing your credit can help you:
- Identify errors or inaccuracies
- Understand factors impacting your score
- Monitor changes over time
- Better position yourself for future loan applications
Strong credit can provide more borrowing flexibility when you need it most.
3. Understand Your Emergency Financing Options
Emergency savings should be the first line of defense whenever possible, but some situations require additional financial resources. Knowing your options ahead of time can help you make informed decisions during stressful circumstances.
Instead of scrambling to find a solution during an emergency, take time to understand available financing options before you need them.
Personal Loans
Unexpected expenses like medical bills, emergency travel, or urgent repairs can sometimes exceed available savings. Advia’s Signature Loan is a fixed-rate personal loan with flexible terms. It’s one predictable payment that's great for emergency repairs, last-minute travel necessities, and other unplanned expenses.
Home Equity Lines of Credit (HELOC)
Homeowners may also consider opening a Home Equity Line of Credit (HELOC) as part of their broader financial preparedness strategy.
What is a HELOC? It provides access to a revolving line of credit based on the equity in your home. While it shouldn’t replace an emergency fund, it can serve as an additional financial resource for significant expenses such as major home repairs, storm damage, or other unexpected costs.
With Advia’s low-rate HELOC, you’ll enjoy competitive rates, $0 annual or pre-payment fee, and interest-only payments for 10 years. Interest may be tax deductible, and you’ll have added peace of mind with an additional financial safety net for those extra expensive emergencies.
Credit Cards
A credit card for emergencies can also play a role in emergency financial preparedness when used responsibly.
Having access to an Advia Visa® Credit Card can provide flexibility for qualifying emergency purchases when immediate payment options are limited. Our Visa® Platinum Credit Cards offer low rates, great rewards, and no annual fees.
Remember to use credit strategically and maintain a sturdy repayment plan to help avoid carrying long-term balances.
Buy Now, Pay Later (BNPL)
Not every unexpected expense requires a new loan. For smaller unplanned purchases, Buy Now, Pay Later (BNPL) can provide additional flexibility.
Available on Advia Digital Banking, BNPL allows eligible members to split qualifying debit card purchases into manageable installment payments.1 It also alerts you when a recent debit card purchase qualifies for split payments. It takes just a few clicks, and there’s no application or credit check.
| Financial Emergency | Advia Solution That May Help |
|---|---|
| Sudden job loss or reduction in household income | Dedicated emergency Savings Account |
| Unexpected medical expenses | Signature Loan for predictable payments and fixed terms |
| Major home repair (roof, furnace, plumbing, storm damage) | Home Equity Line of Credit (HELOC) |
| Emergency vehicle repair | Buy Now, Pay Later for eligible purchases |
| Temporary cashflow gap while waiting for reimbursement or insurance claims | Visa® Credit Card for short-term purchasing flexibility |
| Concern about qualifying for future financing during an emergency | SavvyMoney® credit monitoring to track and improve credit health |
| Difficulty staying consistent with emergency savings goals | My Savings Goals within Digital Banking to automate and track progress |
Start Preparing Today
National Preparedness Month is a great reminder that emergencies rarely come with advance notice. While no one can predict the future, taking proactive steps today can help reduce financial stress tomorrow.
Building emergency savings, monitoring your credit, and understanding available financing options are all important parts of a comprehensive financial emergency preparedness strategy. No matter where you are on your financial journey, small actions taken today can help create greater peace of mind for whatever tomorrow may bring.
About Advia Credit Union: Our mission is to provide financial advantages to our members. With nearly $4 billion in assets, Advia seeks to provide quick and easy access to money and time-saving financial tools to nearly 200,000 members in Michigan, Wisconsin, and Illinois. Advia's team of over 600 professionals delivers excellent service and innovative products at 34 locations and via digital and mobile platforms. Advia is guided by its core values: driving progress, acting with integrity, building and strengthening relationships, and keeping people at the core. Visit adviacu.org to learn more about how Advia provides Real Advantages for Real People.™
1 Eligibility for the Buy Now, Pay Later program options is subject to qualifying amounts, and existing account relationship(s). Membership account must be in good standing with verifiable deposits. You can only participate in the BNPL program if you receive an offer within Advia’s online banking portal. Must be 18 or older to apply. All offers and rates are subject to change at any time. Advia is an Equal Opportunity Lender.