Life is a wonderful rollercoaster ride with plenty of twists and turns to keep us entertained along the journey. Of course, for all the great moments, it does tend to have the habit of throwing some nasty hurdles in the way as well.
For many who are treading a financial tightrope, unexpected charges can hit pretty hard. If you’re living payslip to payslip, emergency costs have the potential to leave you in dire financial straits, so it makes sense to be prepared for them as best you can.
Here, we discuss four of life’s bigger unforeseen expenditures and how you can stay financially organised during these difficult periods.
Car troubles
Car troubles represent one of life’s more frequent, costly and stressful surprises.
Problems can arise at any time – from the car not starting in the morning to breaking down mid-journey — and as you’re likely to be reliant on your vehicle for your daily commute, any issues need to be fixed immediately at potentially significant cost.
While you can’t predict when your car will start stuttering, you can prepare for such moments. Putting aside a weekly or monthly sum for car maintenance will help you create a budget over the year, which you can always spend if you don’t run into any trouble. Scheduled servicing, as well as your own maintenance efforts, will also help you manage and prevent costs.
Home repairs
Though home ownership comes with many benefits, it does come with some negatives as well. One of those is that you are on the hook for any maintenance and repair work required. Like with the car, any problems in your house will likely need sorting urgently, and something like a boiler breakdown can cost hundreds to repair, spanning into the thousands for a replacement.
You can find home insurance that will cover more serious maintenance repairs, likewise you can create an inventory of your home appliances, noting what might need replacing in the short and long term and shape your budget accordingly. You should also make sure to take a look at local companies in your area so that you have an idea of who you might want to ask to do the work – for example, if you are near King Of Prussia in Philadelphia, you could choose Kings Garage Door for garage door repairs in Lansdale, should this be something that you find you need to do.
Again, no one can predict when the washing machine will spring a leak, but you can do your best to be financially ready.
Stolen goods
Being a victim of theft obviously comes with its share of emotional trauma, but it can also bring unwanted financial strain that will make an already stressful period overwhelming. Of course, we all hope that it doesn’t happen to us, but being financially prepared for it will make the follow-up process a lot easier.
Making sure you’re covered via insurance is a good starting point, however some minor thefts don’t incur enough damage to warrant a call to your insurer. In this case, having some rainy-day savings set aside will help cushion the loss of any valuables and enable you to buy replacements.
Although budgeting for normal life can be tough as it is, it’s always sensible to do what you can to prepare for when the unexpected hits. The better prepared you are, the less chance you have of facing serious financial trouble.
