While it’s not popular, it is necessary and wise to look at the potential of unexpected events and the subsequent costs of those events to help you prepare financially for the worst.
Below are six common, costly problems that could occur at any moment. And advised financial precautions you can take to avoid those costs driving you into debt.
From the engine chugging unusually to the tire of the vehicle popping from hitting a pothole, car breakdowns are inevitable and widespread, and they can happen at any moment. Often leaving the driver frustrated and concerned about how much it will cost to get their vehicle back on the road.
When there aren’t any savings you can use, it’s crucial to find out whether there are any other ways you can finance a repair, for instance, with a low-cost payment plan.
One of the most dreaded and costly repairs of all, especially in the winter, is the fear of the boiler breaking down.
But this isn’t the only home mishap that can require a fortune to fix.
There could be a leaky roof, a burst pipe, and appliances that can break at any moment—making your home feel unsafe and dysfunctional.
Search for and buy insurance that covers common, costly problems in the home, and you can relieve the burden of worry and the money it will take to get your house back in working order.
As inflation rises, so does the cost of living. And what was once, for instance, a manageable recurring payment may revert into an extortionate lump sum you’re struggling to cover.
Keeping tabs on the news about inflation and subsequent bills that are expected to rise is one way to prepare and cut back your outgoings for future higher bills.
Other suggestions include sourcing government help that could provide you a supplement of cash to help you keep on top of rising costs.
Alternatively, looking for an alternative higher, paying job or creating a side hustle can bolster your income and help keep your bank account in the green.
Just when parents think they have everything sorted for their children’s school term and have kitted them out with clothes, stationery, books, etc., other costs throughout the academic year begin to surface.
For instance, there could be a fundraising event, school trip, or educational event students would benefit from attending.
To avoid excluding your kids from school excursions and events because of the cost, it may help create a separate pot of cash specifically for school occasions to ensure you can afford them when they arise.
So that when your tween asks if they can go on the school ski trip, you’ll feel safe in the knowledge you have the means to allow your child to do so without feeling the squeeze on your wallet that month.
Death is a part of life, yet most of us live as if we’re immortal and assume our friends and relatives are the same.
When a death does occur, the associated costs can be frightening. From hiring a funeral director to ordering the flowers and arranging the wake, a lot of effort, organization, and money goes into setting up a funeral.
Knowing the costs, your family could have to pay if you were to pass away might motivate you to save for your end-of-life event via a funeral plan to relieve your relatives of the cost.
Just as you may ask your close family members for help in times of financial need, it’s expected that as you become more financially independent, others may someday need help from you.
So set up a savings plan today, and when your loved ones need financial help, you’ll have the option to support them and relieve them of their money worries.