Another Surprise Bill? 5 Ways to Deal with Unexpected Expenses
85% of people admit that they feel stressed over money. Yet, unexpected expenses can cause further financial strain. They dip into your savings and wreak havoc on an already planned budget.
These expenses fall outside of your regular bills and spending money. They can include medical emergency bills, major house repairs, or totaling a vehicle.
Yet, there are a few things you can do to better prepare yourself for extra expenses. Read on for 5 ways to help manage your finances when the unexpected happens.
1. Be Smart About Insurance
About 15.5% of Americans don’t have health insurance. Yet, having a good insurance plan can outweigh unexpected costs when accidents happen.
This includes health insurance, auto insurance, and home insurance. Paying into these policies can help cover unforeseen expenses. Pet insurance may also help, saving you money if any animal gets diagnosed with a disease.
2. Set Aside an Emergency Fund
It helps to set up a separate savings account to use only in case of emergency. Aim to save a small percentage from every paycheck, like 15%.
An easy way to do this is to be smarter about spending money. Make a list of your household expenses and see what you can cut back on.
You can cook more meals instead of going out to eat. You can also clip coupons and buy items on special for your weekly groceries.
This emergency fund can get used to help with unforeseen medical bills and repairs. It can also get used for last-minute travel, like a family wedding or funeral. As booking flights and hotels last-minute can get expensive.
If your emergency fund does not cover big unexpected expenses, consider a quick loan. This quick fix can help with roof repairs or buying a new car when you’re in a pinch.
3. Consider Selling a Few Things
Selling your stuff can bring in some quick cash. Look for items around your house or storage unit that you can easily sell. This can be furniture, jewelry, artwork, or luxury items.
You can host a garage sale or sell things online. Craigslist and Facebook Marketplace are great resources for this.
4. Use an Alternative Form of Transportation
Your vehicles take up a large chunk of family expenses. You may be able to speak to your auto insurance provider about lowering your monthly bills.
Yet, another way to save is to consider carpooling or using public transportation. You can also walk or bike if you live near work.
This allows less wear and tear on your vehicle. You’ll put fewer miles on it and spend less on tune-ups, oil changes, and gas.
Many people are also moving towards working from home a few days a week. More companies are allowing this as a way to help better the environment.
5. Score a Part-Time Gig
A part-time job is a great way to save up some extra cash. This money can get used toward common household expenses or unexpected bills.
You can make money in freelancing or blogging with affiliate marketing opportunities. You can also work nights and weekends as a bartender or event staff.
Staying on Top of Unexpected Expenses
These tips will help you to better handle any unexpected expenses that come your way. It helps to set aside some savings and cut back on monthly expenses. Subscribe to our newsletter for more tips on budgeting, saving money, and other fun facts.
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