Thursday, March 12, 2020

4 Unexpected Costs That You might Encounter

Things might be going well for you financially, and then an unexpected cost could come along and take you by surprise. It is many peoples aim to be financially stable, but being financially stable also involves having an emergency fund in case anything goes wrong. Being without an emergency fund, or any backup plan that will help you if things go wrong could lead to more problems in the future. Here are unexpected costs that you should have a fund for:

Home repairs

It is expected that you will have to spend some money every year on repairing and maintaining your home, but sometimes major repairs need doing, that you haven't planned for. These major repairs could include a new boiler, roofing repairs, or electrical repairs. Some advice is to save 1% of your home's worth every year so that you have enough to spend on repairs. 

To cover the cost of damage from adverse weather or any other disaster, it is a good idea to get home insurance. Before you get the insurance, make sure that you look over the policy and check what is included as if you live somewhere that has a risk of flooding or earthquakes, this might be an extra that you have to add to the policy.

Car emergencies
Your car is also something that you expect to spend some money on every year so that you can service it, put it through its MOT, tax and insure it. However, there may end up being more major repairs that you did not account for. It could be a repair that happens through wear or tear, or because you were involved in an accident. To help you with the cost of repairs because of a car accident, you need to make sure that your car is insured, and if the accident wasn't your fault, you might need to get into contact with a local car accident lawyer.

Pet emergencies

Pets can make your home into a happier place, but when they have a medical emergency, it can be very costly. At the moment when something goes wrong, you don't think about how much money it is going to cost; you just want your pet to be better. It is only afterward that you have to deal with the bill. You may be able to organize a payment scheme with your vet so that you don't have to pay the full bill all at once, however, it may be a better idea to get pet insurance. Pet insurance policies may not cover everything, but they may be able to help you with some of the unexpected costs that might occur.

Technology repairs

In this technologically advanced world, there are some pieces of technology that people need on a day to day basis. Your phone is required to keep in contact with people and so that you can answer emails. If you work from home, you might rely on your laptop. If something goes wrong with one of the items, you may need to replace it as soon as possible, and this can come with a big price tag that emergency savings would help with.


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