Six Ways You Can Better Prepare for Those Unexpected Expenses
Wednesday, September 2, 2015, 6:00 AM | Leave Comment
A harsh winter, a broken arm, or a wrecked car. All of these things can put you in extreme financial strain if you’re not expecting the unexpected. Luckily there are a few ways you can better prepare for these expenses now, so you don’t have to break the bank for them later.
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Create a Budget Plan
Everyone knows budgeting is essential to keeping your finances in order, but not many people actually take the time to do it. Decide on a regular time to go through your budget: once a week, once a month, whatever works for you.
Look ahead for that time period and figure out how much you’ll be earning and how much you’ll be spending.
Look at your accounts and do the math. This alone can help you spend less and have more spare income in the bank.
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Save, Save, Save
Start by setting aside $25 every paycheck. A lot of direct deposit options allow you to do that automatically so you don’t have to even think about it.
Once you don’t miss that $25 anymore, up it to $50, and so on until you get to a savings amount you’re comfortable with. Don’t touch those savings until you really need them.
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Update your Marketable Skills
One of the most common unexpected expenses these days is losing your job. You can prepare for the worst in this case by continuously updating your marketable skills and making sure you have room to move around in the economy.
Take seminars and go to community college classes. That way, if you do need to update your resume, you have more to work with.
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Plan Ahead
There are some unexpected, or irregular, expenses that happen every year and can vary depending on circumstance.
If you have kids, you might have to pay fees to get them into sports teams, and don’t forget the Christmas gifts you get for everyone each year.
Plan ahead for these sort of expenses a few months before you know you have to pay them.
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Invest in Insurance
In the event of a natural disaster or home emergency like a burst pipe, you’ll save lots of money by having things like renters or home insurance, medical insurance, or even better car insurance.
Pay a little every month so you don’t have to pay a lot in the future.
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Get Legal Aid
If you’re in a car accident or were injured on the job, you may want to look into getting legal aid.
An attorney can help you make sure you get fair compensation for these sorts of unexpected expenses if you’re entitled to them. The injury attorneys at Ladah Law firm say a large majority of personal injury cases will settle out of court, so you may not even need to worry about going to trial.
Start practicing these financial tips now. Don’t let the future you look back with regret.
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