Disasters happen to almost everyone in time. But a personal misfortune doesn’t always have to become a money emergency.

Here are some tips that will help you sleep better at night by making sure you’re financially ready for almost anything life throws at you:

Create an Emergency Fund

When disasters happen, you’ll be much relieved to have a nest egg of backup cash.

Ideally, you should strive for three to six months of expenditures in a saving account. The Bureau of Labor Statistics says it can take an average of five months to find a new position after a job loss, so having a half-year in savings should cover you if something happens with work.

As an added benefit, your emergency fund will usually be able to cover other emergencies in addition to job loss. Just be sure to keep this money liquid, such as by placing it in a high-yield savings or money market account.

Keep Your Credit Up

Borrowing can be a reliable way to get out of a jam. But if your financial track record isn’t the best, you might find it harder to get approved for a credit card or emergency personal loan.

It’s often best to not wait until you need credit to build credit. When times are good, be extra diligent with your good money habits. That way, when you do apply for a loan, your approval chances may be higher.

Maintain a Flexible Budget

Flexibility is an advantage in overcoming emergencies.

To determine how flexible your budget is, identify what percentage of your monthly expenses are fixed and which are variable. Fixed expenses are those that don’t change month-to-month, like rent or mortgage payments. Variable expenses, on the other hand, are those you can control, like groceries, subscriptions, and entertainment.

The lower your fixed expenses relative to your total budget, the more resilient you are. 

Pay Off Your Credit Cards

Debt can become even harder to manage in times of financial turmoil. Getting rid of those monthly payments can give you much more financial freedom to deal with cash emergencies.

If monthly payments on credit cards are bogging you down, you may want to consider a debt consolidation loan. In many cases, this loan can lower your monthly rate, although you may have to pay on the loan for longer. As a bonus, your debt can become much easier to manage, since you can combine multiple monthly bills into a single payment. 

Get Insured and Price Shop Regularly

Injuries and accidents are two common sources of financial emergencies from which insurance can protect you.

About 5% of people in the United States become short-term disabled per year, according to the Council for Disability Awareness. So, if you think you can afford it, consider getting disability insurance. That way, you’ll have a source of income if you’re badly injured.

Also, be aware that your car insurance might not cover your lost wages if you can’t work after an accident. To get protected, consider adding such auto coverage plans as liability bodily coverage, uninsured motorist coverage, and personal injury protection coverage.

Finally, when was the last time you price-compared your homeowner's or car insurance? Keeping insurance costs low will ensure that you have more flexibility to avoid cash emergencies. Auto insurers' rates fluctuate, so consider price shopping every 6-12 months for auto insurance, and every year for home.

Get Alternative Streams of Income

Having a side gig as a fallback can boost your resiliency in times of trouble. This might involve developing a freelancing skill, such as marketing, data entry, or customer service in a lucrative niche. Here’s a list of popular freelancing skills.

Don’t Be Scared, Prepare!

Disaster and misfortune are inevitable parts of life. But many people wait until it’s too late to protect themselves.

Start boosting your emergency savings and come up with contingencies in case things take a turn for the worst. That way, when something bad does happen, you can focus on getting back on your feet, rather than on making ends meet.