Financial uncertainty can cause severe stress and affect our health, relationships and sense of security. Many factors can play a role in causing financial instability. However, I believe a large, unexpected event can cause the most problems. Here are some ideas on how to develop a financial contingency plan:

• “Do I really know how much our expenses are?” Get a firm grip on your expenses. There is very good software available to help keep track of the family or business budgets.

• “How much do I have in investments and savings. And, how long would that carry us during a financial crisis?” I have read that a household should have at least six months of operating expenses set aside. A goal of 12 months would be better. This “nest egg” should be your first goal in savings. Work toward it gradually.

• “If a major, negative financial event happens, what expenses could I cut to save money?” Many people have difficulty differentiating between “need to have items,” and the “like to have items.” Look at every item you spend money on and decide what and how much you could cut out of your budget. You might consider reducing or dropping some of those expenses now and use the money you save to fund your emergency savings.

• “What would I do if I lost my job, or my spouse lost theirs? What would I do if an important source of income dried up or the earner died?” These are not pleasant thoughts. However, they are much easier to consider and think about as a planning exercise than they are in the actual emotional setting.

Answer these questions honestly. What would you do? Where would you go? To whom would you turn? Is there anywhere to go, or anyone to turn to?

• Finally, ask yourself, “What can I write to myself now, in this calm, stable setting that would help me keep focused, on track when I am under the stress of a financial crisis?”

Write yourself a set of guidelines. Perhaps quotes that you like. Maybe even pictures to remind you of past successes or future dreams.

I actually suggest that you develop a written plan. Have one for yourself, your family and business, if applicable. Then, after you’ve developed your plan, put it in a safe place. Look at it either once a year to see if it needs updating, or when the unexpected strikes. Then you will be glad that in a time a crisis, you have a letter to yourself. One developed while calm, that will give you guidance on how to handle your current situation.

Start planning now.

Tim O’Brien writes continuing-education courses and presents seminars on stress management.