We are all big proponents of emergency funds around here, just to cover you in those hectic moments where you really need extra cash.
Here are some examples of unexpected expenses that might happen to you this year:
1. Pet Health Issue
While my dog has been very healthy the past 5 years, it seems like at least once a year she has to make an extra vet visit because of some strange malady or because she is bad and ate something she shouldn’t have. Other people might have to pay for pet surgeries, pet medication such as heartgard plus chewables, or even special pet food. Always factor in your pets when you think about potential emergencies!
2. Family Emergency
Whether you have to take an extra flight to go see a sick relative or have a sick child that causes you to miss work, family issues could cost you several hundred dollars this year. The best thing to do to prepare for this is to have an emergency plan in place to decide what you will do if you have to leave work suddenly. It’s also helpful to talk to you employer about your options just in case.
3. Car Repair
Unless you are handy with vehicle repairs, car expenses can always pop up every year. Either you’ll have to buy four new tires or have to deal with some other potential issue. Because of this, make sure that you have good car insurance and that you always have funds in place to take care of car repairs. Even one $500 expense can set you back and put you in debt, so having this money set aside will over you great peace of mind.
4. Natural Disaster
This is definitely something none of us want to think about, but if you are in an area where natural disasters are prevalent, be sure to have a plan in place and a good understanding of your insurance policies. When my family endured Hurricane Katrina in 2005, the amount of expenses were unbelievable. They had so many uninsured losses and businesses losses that is has taken them almost 8 years to recover. No one can predict something like a natural disaster, but spending some time thinking about what you would do if it happened to you can help you be one step ahead if the worst case scenario takes place.
Ultimately, unexpected emergencies are not a fun topic to think about. In fact, some of them can be downright depressing to plan for. Unfortunately, though, unexpected expenses are a fact of life that every adult needs to be prepared for. Even if you start small with a $1,000 emergency fund, it’s still a great way to ensure that you and your family are financially safe in a worst case scenario.
If you need help saving for an emergency fund, try saving just $20 a week for the entire year and pretty soon you’ll surpass $1,000 in savings. Be sure to only use it for extreme emergencies and re-fill it as soon as possible after withdrawing the cash.
What are some unexpected expenses that you have had to deal with in the past?