Coping with Unexpected Expenses

It’s very hard to look at your bank account and realize that despite your best efforts its balance is much lower than is needed to meet your expenses. Sometimes the low balance is as a result of a consumer’s poor decisions, however there are other times when there are circumstances beyond anyone’s control that intervene and make it difficult to save money.

So what should you do when unexpected expenses appear and drain your budget?

Plan for the Unexpected

The best way to deal with unexpected expenses begins long before there are any financial issues. It is much better to plan ahead than trying to deal with fall out.

Whereas there is no way to predict the future there is one thing that is certain and that is anything can happen to anyone at anytime. Therefore put aside a little every month so that when emergencies do arise you are better equipped to deal with them.

I like to call it my ‘stash’ which is really just an account that I never touch except to place money in it every month. I am not saving toward a goal, it really is for those emergency situations that might require funds.

Loans

Of course another option is to borrow the needed funds. There are several loan arrangements available but there is need for caution.  Always borrow from a reputable organization and check the fine print to ensure that you are getting the bets deal available.

Interest rates and terms are repayment for loans can be very restrictive for some persons. Some loans require securities and that can be problematic as you risk losing your assets if you are unable to pay the loan.

Another option is to borrow funds from relatives or friends which would remove the high overage and lessen the financial burden.

Regardless of how you meet unexpected expenses it is important to keep your budget intact by cutting funds earmarked for less important activities such as those linked with entertainment.

So how do you deal with unexpected expenses? Drop me a line and let me know!

Teri Ann Renee Paisley

Gleaner online writer

Tags: budget, expenses, funds