In the wake of Hurricane Milton’s devastation, a stark reality has come into focus for many Black women: financial preparedness can mean the difference between safety and being stranded in a crisis. As natural disasters become more frequent and severe, having a robust emergency fund isn’t just smart—it’s essential.
Recent data paints a sobering picture: according to a 2023 survey by Goldman Sachs, 71% of Black women report living paycheck to paycheck, compared to 63% of the general population. This financial tightrope walk leaves little room for unexpected expenses, let alone the costs associated with evacuating during a natural disaster.
The challenges of emergency preparedness became evident during Hurricane Milton. Many faced difficult decisions when evacuation orders came, weighing the costs of temporary relocation against the risks of staying put. For those living paycheck to paycheck, the thought of hotel costs and missed work presented a significant financial burden, highlighting the critical importance of having a well-funded emergency savings account.
This situation isn’t unique to natural disasters. The Federal Reserve’s 2022 Survey of Household Economics and Decisionmaking (SHED) revealed that only 68% of Black adults could cover a $400 emergency expense using cash or its equivalent, compared to 87% of white adults. This disparity highlights the urgent need for targeted financial education and support within our community.
So, how can we ensure our emergency funds are truly ready for the unexpected?
Start where you are.
Don’t let perfect be the enemy of good. Even if you can only set aside $20 a week, that’s $1,040 in a year—enough to cover a short hotel stay or a one-way flight in an emergency.
Automate your savings.
Set up automatic transfers to your emergency fund each payday. Treat it like a bill you must pay yourself. Apps like Digit or Qapital can help by analyzing your spending and automatically saving small amounts you won’t miss.
Diversify your emergency fund.
Consider keeping some funds in a high-yield savings account for easy access, and some in a money market fund for potentially higher returns. Websites like Bankrate.com can help you compare options.
Plan for specific scenarios.
Beyond a general emergency fund, consider setting aside funds for specific risks. If you live in a hurricane-prone area, factor in potential evacuation costs.
Leverage community resources.
Look into local organizations that offer emergency preparedness workshops or financial coaching. Many credit unions and community centers provide these services for free or at low cost.
Build skills to boost your income.
Investing in yourself can increase your earning potential and ability to save. Platforms like Skillshare or Coursera offer courses in various fields, often with financial aid options.
Review and adjust regularly.
Your emergency fund needs may change over time. Review your fund every few months and after any major life changes.
Remember, building an emergency fund is a journey, not a destination. It may take time to save several months of expenses, but every dollar set aside strengthens your financial resilience. The key is to start and maintain consistent progress, no matter how small the initial steps may seem.
As Black women, we often carry the weight of financial responsibility not just for ourselves, but for our families and communities. By prioritizing our emergency funds, we’re not just protecting our own futures—we’re building resilience that ripples outward.
