X is for uneXpected eXpenses and How to Handle them

X is for uneXpected eXpenses and How to Handle them

unexpected expenses and how to handle them

Unexpected expenses are unfortunately part of life from time to time. But if they are frequently happening, or if you are struggling more than usual to pay for these unexpected expenses, then maybe it’s time to start looking at some of your emergency practices and resources.

What are some of the best ways to deal with unexpected expenses?

Plan ahead for the unexpected

It can be challenging to plan for the unexpected and even worrisome to plan for what we may consider a “bad” occurrence that comes our way. But being prepared is essential! Having a savings account with 3 to 6 months of expenses in it at all times is a great start. For the loss of a job, or perhaps an unexpected purchase, this can be an excellent place to dip into.

Create a budget

Yes, you’ve heard this one before. But instead of thinking of this as a spending budget, think of this as a saving budget. Look at your income, assets, and spending habits. Where can you cut costs? Where can you save more money? If you try these tactics, you can build a more significant savings account to help you prepare for unexpected expenses.

Create a preventative inventory

Often we cannot plan for unexpected expenses. But sometimes we can anticipate them. Is your car in good shape, or is there an extensive repair looming in the future? Are your household appliances in good working order, or are they aging rapidly? Are things in your job field going as planned, or are you expecting layoffs in the coming years? Whatever the potential unexpected expense may be, it’s important to recognize what it could be. Helping you to make a plan, or save money, to deal with this future expense.

Don’t sweat the small stuff

Yes, unexpectedly needing a new refrigerator or your child not getting the scholarship they were expecting can feel financially devastating at the moment. Especially if you were counting on not having to pay for these things. But look at the larger picture and get creative in ways to pay for things now. It may be difficult at the moment, but you’ll survive this unexpected expense.

Unexpected expenses can feel like they can make or break our finances at times. They are never fun, and we always hope that we never have them. But, if they are unavoidable in some instances, just take a breath and follow the steps above to handle pesky unexpected and unwanted expenses.

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