About half of Kentuckians don’t have enough money to cover basic expenses in a disaster, according to a recent study.
The Corporation for Enterprise Development says Kentuckians are 34th among the 50 states in terms of having the savings to be prepared for a financial emergency.
Financial Planning Advisor John Bryant said people should save enough money to cover at least three months of expenses. He added that if a person is self-employed, he or she should have enough money to cover six months of expenses.
In a natural disaster, Bryant said most people who don’t have any money saved then rely on their friends, church community and the bank to pull them through.
Mary Jinocchio owns “Mulberry and Lime,” a home furnishing and gifts store in Lexington. She said owning your own business takes financial discipline.
“The one benefit of working for corporate or somebody else is that there is a paycheck,” Jinocchio said. “When you have your own business that income may fluctuate based on what's going on economically or if there is a natural disaster.”
Jinocchio said the storm doesn’t have to hit your home state either. Her business orders were stalled a few months ago when Hurricane Sandy hit the east coast.
To survive in critical times, Jinocchio said she remains frugal when business is good. But even with the money saved, Jinocchio still isn’t sure what she would do if her business was hit by a tornado or another storm.