Thursday, March 17, 2016, PM | Leave Comment
A variety of life events either create new financial obligations while a job loss will leave people scrambling to just keep up with the bills.
Most people know they should be saving for those unexpected life events but don’t know who to create a realistic savings plan.
This article offers advice for preparing for some expensive life events.
While the pregnancy might be welcome, the added costs of impending motherhood might not be. Many of your medical expenses will be covered by insurance but some will not.
If becoming a parent is a possibility, prepare financially by pricing some maternity clothes and finding out how much of the pre-natal costs your insurance covers.
Medical care and dental work can easily eat up the unprepared individual’s meager savings and credit. You can avoid some medical bills with prevention, but prevention is no substitute for having insurance.
Take advantage of the Affordable Care Act if your employer does not offer insurance. If your employer offers a health savings account, use it.
Civil Cases and Criminal Charges
Legal issues, like being accused of a sex crime, can quickly ruin an unprepared person. Accusations of a sex crime lead to job loss, lost days at work, difficulty finding a different job, and legal fees.
Most people are completely unversed in dealing with such a predicament, should it happen.
However, a Houston sex attorney knows how serious such an accusation can be. Having some help in such a precarious situation can make all the difference.
Property crimes end up costing money in many ways. Even if you have insurance, there will be a deductible. You will have a deductible to pay, and there will be expenses you have to pay up-front.
Plan for a fire or a break-in by having a home inventory, in photos or video, stored remotely.
Losing a Job
While losing a job doesn’t cost money, a job search will. If you lose your job without warning, you will need to have extra money for networking activities, resume writing help, and perhaps for a class or two. Those costs will have to come out of your emergency savings.
Start Saving Now
Create a savings account with a small deposit. Resolve to have 5% of each paycheck sent directly into that account. If you take home $2,000 a month, cutting $100 a month should not hurt much.
Resolve that this money will only be for the types of real emergencies mentioned here.
Rachelle Wilber is a freelance writer living in the San Diego, California area. She graduated from San Diego State University with her Bachelor’s Degree in Journalism and Media Studies. She tries to find an interest in all topics and themes, which prompts her writing. When she isn’t on her porch writing in the sun, you can find her shopping, at the beach, or at the gym. Follow her on twitter: @RachelleWilber