You May Be Forgetting to Prepare for These 5 Emergency Expenses
- From house maintenance to health, there's a lot to plan for.
- Setting enough aside for several months of expenses can do a lot for your comfort and security.
While saving for the future, don't forget about these potential expenses.
Planning for future expenses -- expected purchases as well as potential emergency expenses -- can be beneficial. Having an emergency fund can make unexpected situations less stressful and upsetting. While you may have some savings set aside, read on to discover some emergency expenses worth saving for.
Buying a house is a significant expense, and it comes with a lot of responsibility. Even a home in great condition will eventually need repair work. If you skip it, issues could worsen and become an even bigger financial burden later.
If you own a home, set aside savings for household repair and maintenance expenses. Costs vary greatly, but one issue can easily run hundreds or thousands of dollars to fix. Making regular savings contributions can make a costly surprise repair bill feel less overwhelming.
Dental insurance can cut down the cost of regular cleanings and treatment. But some dental procedures are not usually covered, or may be more expensive than your insurance deductible. The cost of a root canal, for example, can add up quickly. Even if your smile looks and feels good today, it's smart to set money aside for potential dental emergencies.
Unless you live in an area with stellar public transportation, you likely need a vehicle. While owning a car can be convenient, purchasing and maintaining it can be costly, and repair needs can pop up when you least expect it.
Whether you have an older vehicle that needs replacing or a newer vehicle that needs regular maintenance, save for these costs in advance. If you don't end up using your savings for repairs, you'll have a down payment fund when it comes time to replace your vehicle.
Even if your furry friends are healthy and happy, emergency health situations happen. Diagnostic testing, medications, and surgery can get costly. If you take your pet to an emergency vet, the costs are usually higher than a traditional veterinary practice. It's wise to set aside savings for pet emergencies.
Losing your job not only impacts your daily life and routine, it also impacts your finances. Even workers in comfortable, long-term positions risk being fired or let go from their job. It's good practice to set aside at least several months' worth of income, so you're not without money if you lose your job. This helps you continue paying your bills and living expenses, plus you can feel less stressed as you seek new employment.
How should you go about saving for these kinds of expenses? Setting aside money in a savings account every month is an excellent way to prepare for the future. If you like separating your savings by category, choose a bank that helps you organize your savings. Ally, for example, offers a "bucket" system that may make it easier to plan out multiple savings needs.
Life is full of surprises. By planning ahead for important financial matters, you can feel more comfortable and secure in your daily life and your personal finances. It's never too late to start saving or change your financial habits.
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