A recent survey found that the majority of Americans don’t feel financially prepared for unexpected events like job loss (64%), unexpected expenses of more than $5,000 (60%), death of a loved one (59%) or medical expenses (50%). That’s why protecting your finances is crucial for achieving long-term financial stability and effectively planning for the future.

Here are five measures to consider ensuring your money is protected in the case of an emergency.

1. Maintain access to your money.

You should always have access to your money, especially if you experience job loss, face displacement, or natural disasters. Here are two easy ways:

• Debit/ATM card: This will grant you access to an ATM to check balances or withdraw funds if needed. If your bank is local to your area, like FirstBank, you can still access your account surcharge-free with MoneyPass®, a nationwide network of more than 37,000 ATMs.
• Online and Mobile Banking*: This allows you to access your funds remotely, whether you’re transferring between accounts, sending payments to friends and family, or managing your lost/stolen debit card. Additionally, within the Mobile Banking App you can securely chat with a bank representative, find the nearest ATM location, or set up alerts/notifications.

2. Build an emergency fund.

Did you know that 33% of Americans have more credit card debt than emergency savings? Without savings, even a small emergency can negatively affect your finances. One way to prepare is to set up an emergency fund, a bank account with money to cover large, unexpected expenses. This fund should have enough to cover at least three to six months’ worth of living expenses. While there are several types of accounts you can open for your emergency fund, here are two options:

• High-yield savings account: Typically has a higher annual percentage rate (APY) than traditional savings accounts because they have compound interest. This means your money can earn interest on the principal amount and previously earned interest. You can transfer between accounts online or in person when you need to access the funds.
• Money market account: This is another savings account alternative earning a higher APY than traditional bank accounts. It may also come with a debit card and check-writing capabilities, allowing you to access your funds conveniently in the event of an emergency.

3. Put your money in an insured account.  

Several financial institutions and credit unions are backed by agencies designed to insure your funds. Credit unions are typically insured by the National Credit Union Administration (NCUA) and banks are typically insured by the Federal Deposit Insurance Corporation (FDIC). These organizations were established to give consumers peace of mind while entrusting their money to financial institutions.

Suppose you decide to bank at a financial institution backed by the NCUA or FDIC, your deposits are protected up to $250,000 per depositor, insured bank, and account owner, ensuring your funds are safe in the case of bank failure. To calculate your insurance coverage, visit the FDIC’s online Electronic Deposit Insurance Estimator (EDIE) at edie.fdic.gov.

4. Implement proper security measures. 

Proper security measures are crucial to protecting your finances during an emergency, helping to safeguard your money from potential theft, fraud, or loss of access. Security measures can include:

• Choose strong passwords: Create passwords that are difficult for fraudsters to guess. Consider using password management software like Keeper Security or NordPass, to help store, create and update strong secure passwords. You should also avoid using the same password across all accounts.
• Enroll in additional authentication: This security method requires users to provide more than one piece of information to access an online account. It requires a password and a unique one-time authentication code usually sent to your phone via text or a security question. This helps prevent individuals from accessing your funds with just your username and password.
• Monitor your accounts regularly: By monitoring your accounts, you can catch fraudulent activity quickly and efficiently. Some banks offer account alerts notifying you via text or email if your balance changes or any personal information like email address or login credentials change.
• Safeguard your account information: Guard your passwords, account numbers, and personal details to prevent them from being stolen and used to access your financial information. You should always shred sensitive documents and cut up old or closed debit and credit cards.

For more ways to secure your accounts and personal information, read “6 Tips for Protecting Your Accounts Online.”

5. Curb impulse spending.

Avoiding unnecessary debt or impulse spending on items like expensive vacations or subscription plans can help protect your finances by allowing you to keep more of your income available for savings or emergencies. Creating and sticking to a realistic budget can help you avoid taking on additional debt that’s harder to pay off over time. If you are having trouble staying within your budget, you should look for ways to cut costs and work to identify problem areas. Are you overspending in non-essential categories like designer clothes and daily coffee runs or underestimating variable expenses such as groceries?

The 30-day savings rule is one way to control impulse spending. This strategy is straightforward: wait 30 days before committing to large purchases. During this time, you can reflect on whether this item is a want or a need, research better deals, or create a savings goal to pay for it without going into debt. The more time you spend understanding your finances, the better positioned you are to make meaningful changes and set your finances up for success in an emergency or crisis.

Safeguarding your finances and preparing for unforeseen events is the key to ensuring you’re set up for success when it matters the most. For more tips on how to be financially savvy, visit our Financial Health page at efirstbankblog.com.

*Online Banking is free with eStatements. $3 per month with paper statements. Online Banking is required to use mobile and online products.

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Published: March 14, 2025