With the third anniversary of Hurricane Katrina fresh on our minds, it's a good time to reevaluate our own individual readiness for the unexpected. Are you ready? Could you find your documents and your kids and be out of your home on short notice? Or if you were sequestered in your home for an extended period of time, do you have basic provisions to last?

I suggest that we all take time this week to make sure we have the basics of disaster preparedness covered. A great new resource that will help you get ready for any eventuality can be found at www.ready.gov.

While we're at it, let's apply emergency preparedness lessons to our own financial situations. After all, disaster can strike in forms other than those sent by Mother Nature.

Pay attention and heed warnings. When it comes to your money, you will find plenty of warnings. Here's one: You need at least three months' income safely tucked away where you can get your hands on it in a hurry. We call this a contingency fund.

Know what you have. You need an up-to-date understanding of your bank accounts, insurance policies, retirement accounts, investments and other financial assets. You also need to know what you owe: mortgages, credit card accounts, home equity loans, student debt — all of it. When you subtract what you owe from what you own, you come up with your net worth. Knowing the amount of your net worth will empower you.

Know the way out. Debt enslaves you and limits your options. Knowing how to get out is key to regaining your financial freedom. Secured debts, when lenders have collateral in the form of physical assets, are safe debts. If you need to get out quickly, you can sell the collateral to pay off the debt. If you are a slave to unsecured debt, breaking free will be more challenging. You won't have collateral to sell, but you'll have the knowledge to create a get-out-of-debt plan that works. (Visit the Rapid Debt-Repayment Calculator demo at www.DebtProofLiving.com.) Knowing how to get out is half the battle.

Don't panic. After learning that you have just lost your job, that your mortgage rate has just reset, or any other kind of a financial crisis you can think of, staying calm is the key to riding out the storm. Panic is never the right response. Keeping a cool head and seeking the best advisers possible are the ways to get through any kind of financial challenge.

Take charge of your own situation. Whether you think your situation is fair or not, don't waste a moment blaming others or waiting for someone else to rescue you. Instead, pick yourself up, figure out the best way to fight back, and then get busy. It's a lot easier to keep going once you have started to move forward. Tough times never last, but tough people do!

Mary Hunt is the founder of DebtProofLiving.com and author of 17 books, including "Debt-Proof Living." You can e-mail her at [email protected], or write to Everyday Cheapskate, P.O. Box 2135, Paramount, CA 90723. To find out more about Mary Hunt and read her past columns, please visit the Creators Syndicate Web page at www.creators.com.