Salvation Army's Moneycare recommends having a $2000 buffer

Unfortunately research indicates that something goes wrong for people every three years.

As natural disasters become more frequent, Eurobodalla Shire Council has arranged for financial counsellors from The Salvation Army's Moneycare team to hold free information sessions.

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Moneycare's Susan Cheetham has been a financial counsellor since 2014.

As the cost of living soars, "it is just awful in terms of the hardship I am seeing with people coming to me", she said.

Ms Cheetham moved to Batemans Bay on December 30, 2019.

Her worldly possessions were on the verandah and the fires were within 100 metres of her house.

She had moved from a bushfire-prone area where she had lived for 20 years "but this time I was not prepared.

"It was a huge learning curve."

Ms Cheetham said that Moneycare's case studies on people hit by natural disasters found that financial preparedness requires much more than insurance.

Ms Cheetham listed four ingredients for financial wellbeing in the event of a disaster.

Social network. During disasters, people help people. You help your neighbours and they help you.

Healthy mind. Practice whatever keeps you healthy. If you need counselling after an event, get counselling. Don't let it slide.

Products and services. Have insurance and read the fine print to know what is covered and what is excluded.

Emergency savings are critical as a buffer for when things go wrong.

The author of Barefoot Investor, Scott Pape, suggests $2000.

"Can you come up with $2000 in a week?," Ms Cheetham said.

"That is a really big question."

Knowledge and skills. Do you have a money plan or a budget? Do you know how much it would cost to rebuild or to replace essentials? Are you debt-free?

Moneycare is an Australia-wide service that provides financial counselling and financial literacy services.

It helps with things like setting up different bank accounts for different purposes.

"To have an emergency $2000 is wonderful because emergencies do happen, not just natural disasters but broken bones," Ms Cheetham said.

"Every cent helps get you re-established until insurance payments come through.

"It isn't a solution but a buffer to sit there for people when things go wrong."

Moneycare is holding monthly information sessions at the shire's libraries in the first half of 2023. The next one in Narooma is Tuesday, May 2, and in Moruya the following day.

No bookings are required for these free drop-in sessions.

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