Money is perhaps the biggest worry in our lives no matter how old or young we are. When we’re young, we think about things like buying the latest toys and games or saving up enough money for a new games console. When we get old, there’s rent and bills to worry about, and then later on in life, we have to think about our pension and retirement fund.
Throughout every stage of our life, money is always there to remind us that we need to work hard. However, no matter how much effort we put into working, there are times when we get caught off guard by sudden expenses or emergency repairs that need to be addressed immediately. Examples of this include car repairs to get to and from work, broken appliances in the home, or emergency repairs that need to be sorted due to home damage. Whatever the case may be, those expenses can come suddenly and make a huge dent in our wallets.
To help you out in these tough situations, here are four different ways that you can deal with unexpected expenses.
Despite what all the advertisements tell you, getting a loan approved does not take a couple of minutes. Loaners need to run a background check on you, ask you for documents and put you through a series of tests before they will give you money. Fortunately, there are services that do enable you to loan money and get a decision within a couple of minutes, such as Credit24 online services. Although taking a loan is a long term investment that you have to pay interest on, it’s worth your time assuming you can pay it back.
Although you can’t always plan for sudden expenses, you can try to minimise the damage they do by managing your finances. The common way of managing your finances is to get used to budgeting. Budgeting just means that you are keeping an eye on all of your income and expenses so that you know if you are overspending or if you have a bit of disposable income.
If you have ever bought an item that ends up seeing very little use or is thrown away after a couple of days, then you’re probably experiencing buyer’s remorse. Let’s face it, not everything we buy is useful and even then, we have to ask ourselves if we really need those fancy electronics in our lives. Entertainment is the main culprit here, and a lot of people spend far too much on the latest technology only to see it replaced in a couple of months.
Open a Savings Account
It might be hard to keep a savings account if you’re not good with money but with enough training, you could change your impulsive ways and store a substantial amount of emergency money in your savings account. The trick is to never open your savings account for regular purchases and to only use it for emergency situations. Keep in mind that many savings accounts build up interest over time as well, meaning the more you keep in your account and the longer you leave it for, the more money you’ll build up.