Future Finances: Top Emergency Expenses You Should Prepare For
Saturday, December 31, 2016, 6:00 AM | Leave Comment
There was a poignant line in the film, “Forest Gump.” The main character, Forest, said “life is like a box of chocolates, you never know what you are going to get.”
Life can throw surprises at you, and you might not be prepared to deal with them.
In fact, a recent survey showed that most Americans are not financially prepared to deal with an emergency that cost more than $500.
The following are a few common financial emergencies that you should be prepared for.
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Medical Emergencies
The United States is separating itself from the rest of the developed world by opting against universal health care. This means some people may not be fully covered, even if they have health insurance.
A medical expense can creep up on you at any moment. Walking down an icy sidewalk could lead to a broken hip if you slip, so try to find the best health plan you can.
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Job Loss
Many people have learned no job is guaranteed to be recession-proof. It is important to ensure that you are prepared, just in case you lose your job.
It might be a good idea to set aside at least one month’s rent or mortgage payment to give yourself a month to look for another job. Others have decided to live debt-free while keeping a credit card for emergencies.
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Car Issues
People depend on their jobs, but they also depend on their cars. There is no doubt that a vehicle is a useful tool in more ways than one, but it can also become an unexpected expense.
A transmission job could go up to $800 while a car accident could end up costing a lot more, unless you prepare and enlist the help of cost-effective companies, such as Chehalis Collision Center, that deal with car accidents beforehand.
Make sure you have enough money to deal with these issues and the right numbers should you ever have an emergency.
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House Hold Repairs
A home can be a major expense, especially if you are not prepared. Natural disasters can do a number on your home. You may have insurance, but that does not guarantee that the disaster will be covered.
Some people’s homes sustain so much damage that they have to stay in a hotel or with friends and family. Be sure that you are covered for every possibility or save up enough money to cover any additional costs.
As you can see, it would be wise to set up an emergency fund to deal with any of these emergencies. You could even set up separate funds to ensure that you have a few eggs to choose from should the need ever spring up on you.
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