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.