Family Finance: Unexpected Expenses do not Have to be a Nightmare

Family Finance: Unexpected Expenses do not Have to be a Nightmare

No matter how stringent and chary you are with your finances you can never be immune to unforeseen expenses. It happens to all and sundry. Everything is running smoothly and then out of the blues; you hit head-on another car or a mysterious illness that threatens to leave you bedridden strikes. Or maybe, you lose a family member.

We don’t plan for any of the above, but they happen, and when these unexpected expenses strike we often suffer financial and emotional stress. However, preparing for unanticipated costs is an excellent way to do damage-control and avoid economic disasters.  You don’t want to run around circles as that may lead to a continuous cycle of debt. Here’s how to make sure unforeseen expenses don’t turn into financial disasters.

Have an Emergency Fund

Setting aside some money for emergencies is the most important step to dealing with unexpected expenses. This emergency fund is to help you cross the bridge in case of emergencies. So if rent is due and whatever you have in your checking account is sufficient, then that’s an unforeseen urgent cost. Unlike your pre-planned for savings account, an emergency is purely for unpredicted crises.

This level of preparation can give you peace of mind and help you deal in with unanticipated expenses without sinking deeper into debts.

Plan for the unexpected

By now you must have noted down some emergency expenses that recur every month? These unexpected costs differ from person to person and come at different seasons.

So it’s not crazy to add “unexpected bills” to your budget list. New-age personal financial experts like kingofkash.com/ have realized that one of the major weaknesses of traditional budgeting is that it’s too inflexible to accommodate and handle unexpected expenses. Therefore, prepare before to avoid fretting and blaming your spending habits when these unforeseen emergencies you anticipate happen.

…And when you hit rock bottom;

Borrow

Borrowing is not the smartest way to settle unexpected expenses. However, because of the sudden nature of these costs and the fact that we are not always ready to take care of them. But make sure to repay ASAP whatever emergency bill you have to settle on a credit card. Not as soon as you’re back on your feet; do it as quickly as possible.

Think of it; you’re likely to sink deeper into debt after clearing many unexpected expenses. It’s the start of the famous vicious cycle of poverty, so don’t go down the same road. You want to use credit wisely, and only when you really need to. Then, repay it without delay, and at least enjoy some reward points for the quick settlement. The same applies if you seek title loans, do not too long to pay them off.

Learn from mistakes

Beating yourself up never fixed anything in your life and it won’t tomorrow; if anything, it may worsen things for you. Yes, think about the consequences of the financial emergency and learn from your yesterday mistakes, but do not let them ruin your today.

Family First: Do You Have a Plan in Case an Injury Occurs?

Family First: Do You Have a Plan in Case an Injury Occurs?

Accidents happen in the least likely place and often at the most inconvenient of times.  When an accident occurs and results in damages that have to be paid for, whether to you personally, your property, or someone else’s, it can cause severe economic hardships for you and your family.

Having a plan in place to prepare for the eventuality of an accident is a smart move that is designed to protect your family from economic liabilities should a personal injury happen to you.

Have a Savings Account

Personal injuries can result in time out of work, medical expenses and other changes that can be quite costly.  In many cases, your job benefits and insurance coverage alone, if you have any, is not enough to pay your basic living expenses.

Financial advisors recommend having three to six months of coverage for basic bills such as mortgage, electricity, and phones saved up in a savings account to protect you in the event of an emergency.

Track Your Finances Closely

While it may not seem like a huge deal to keep your payments to your creditors on time and invest in building your credit, it can be a major determining factor in whether or not you lose your home or your car while you are struggling to make ends meet after a personal injury.

To keep your family from having to deal with the stressful situation of possibly losing items that are important to them, monitor your finances regularly and stay on top of your credit.  That way, if a personal injury occurs and you are out of work for a while, your creditors will be more lenient and willing to work out payment plans with you.

This applies to utility companies, phone companies, and other businesses that provide ongoing services as well.  However, during the time that you are out of work you should also consider cutting back on things that are not basic necessities such as your cable bill and extras on your phone.  Try not to use your credit cards during this time unless it is absolutely necessary.

Find a Reputable Attorney

Opening the table to a lawsuit is often the last thing people are looking for when they are injured, but in many cases this is the best way to provide your family with stability and security.  

The right personal injury attorney can guide you on what rights you are entitled to, how to deal with creditors as you may be out of work for extended time periods, how to avoid losing your job entirely, and even whether or not you are entitled to monetary retribution for your specific injury.

Develop Your Plan Ahead of Time

Securing the financial stability for your family is likely going to take time.  Starting today to begin working on your finances and developing an action plan is the first step to protecting them.  With you doing your part and the right attorney doing their part, you can focus on recovering from your injury with as little additional stress as possible.

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