Although the majority of us have a rough idea of the amount we spend every month, unfortunately unexpected expenses can crop up at any time. Whether this be a gift for someone, or your car breaks down and you need to spend money to fix it, unexpected costs are something that we need to face. These costs can cause a huge strain on a person and having a plan in place to deal with this can be relieving.
Some of the most common examples of unexpected expenses are medical bills, pet emergencies, repairs and unexpected events. It can be overwhelming if one of these things crop up especially if you do not have enough money to cover them. However, there are some ways that you can deal with these unexpected expenses.
Firstly, it is a wise idea to set aside money for an emergency fund as the money in your emergency fund should be earmarked for unexpected expenses. This means that you will always be prepared for those unforeseen circumstances that could arise. It is advised that you have around three months expenditure in your emergency fund. This should help you if something unexpected comes up. It is also important to keep putting money into it if you use it for emergencies in case another one occurs in the future.
If you are stuck in a dilemma with unexpected expenses, you also have the option to avail of a payment plan. In fact, for emergency-needed products or services, a payment plan is essential. This means that you can pay at a later date when you have accumulated sufficient funds instead of being expected to pay straight away.
In addition, you could also attempt to re-budget in order to slice your spending. This means cutting down on purchasing any unnecessary items and seeing if there are areas that you could cut down your expenses. It could be that you have a trip planned away that you could sacrifice or even find a cheaper alternative. If you make these cutbacks, you can then put your money towards savings which will help you out in the case of emergencies.
When you are short for money, it is also advised that you sell old belongings including furniture and clothes etc. in order to earn money to save. There are plenty of sites online nowadays that facilitate the selling of old unwanted items. Many people who do not like to sell online also go to car boot sales where they might even make a profit on some of the items.
Those who are struggling with saving money could also research how they can get more streams of income. There are plenty of ways that you can earn extra money on top of the money you earn from your main job. As well as selling items online, you could also tutor, try dog walking or even babysitting.
A general tip for anyone who is finding it difficult to cope with extra costs is to open up a discussion about it. In fact, you may find it helpful to talk to someone about the expense. Whether it’s a close friend or a family member, it truly helps to discuss your situation with someone else. The chances are high that they have also been put in a similar situation so they may even be able to give you some advice and point you in the right direction.
In conclusion, it is challenging enough to grapple with the rising prices and the cost of living in today’s society without unwanted expenses cropping up. However, it is vital that you find a way to deal with them and not push them aside. It is advisable that you consider setting up and emergency fund, avail of a payment plan, cut down on your spending, sell old belongings and try to earn extra money on the side.