Unexpected Bills You May Encounter
/Whether you are trying to build wealth as a freelancer or manage debt, good money management is an essential skill. This is due to the fact that it will help you to grow your savings, increase your expendable income and even ensure you’re able to cover yourself during hardships. It's also a particularly important skill in the wake of the COVID-19 pandemic, where many businesses are struggling, and the cost of living is rising.
For example, while we’re usually able to predict and manage our monthly expenses when it comes to rent, mortgage payments, and utility bills - other expenses can sometimes appear out of the blue (and often at the worst possible time). When this happens, it's crucial that you have money set aside so that you’re able to deal with them without any stress. Unexpected bills could include:
Medical Expenses.
Car repairs.
Legal Fees.
Home maintenance costs.
With that in mind, here are some top tips that you can use to ensure that you are best prepared for the above emergencies! This will give you greater peace of mind moving forward while also protecting your hard-earned money.
Medical Expenses
Unexpected medical fees can crop up at any time in your life. For example, if you get into an accident that requires medical treatment or surgery, you may be faced with a bill that seems impossible to recover from (an ambulance ride alone could cost upwards of $1,189). Alternatively, you may develop a health condition that requires more regular medical support or medication. In this case, the easiest way to prepare for the scenario is to take preventative measures. That means you have to focus on finding the right healthcare insurance for you. For example, while some insurance policies may be more expensive than others, it often means they cover more scenarios, giving you better or more comprehensive protection overall.
On a similar thread, you might also want to consider any unexpected veterinary care bills you’ll need to deal with. Cute as they may be, your dog is not your budget’s best friend, especially if they develop a health condition that requires daily medication or constant veterinary care later in life. Again, your insurance policy can come in handy here.
Car Repairs
Getting into a car accident is not only terrifying from a health and safety standpoint but also from a financial one. After all, if your car is badly damaged, you may have to purchase a new one altogether or carry out extensive repairs. While your insurance may cover some of the costs, there are specific steps you can take to protect yourself or reduce the chances of these scenarios occurring.
For example, carrying out regular car maintenance increases the longevity of your car and reduces the chances of expensive repairs being necessary further down the line. It also means that you’ll be safer on the road.
For example, if you drive a Ford Vehicle such as an SUV, car, or truck, you could check in your car for regular maintenance checks and support at a Ford Authorized Service Center. They will be able to identify any issues within your vehicle that are not immediately obvious so that you’re able to resolve these problems quickly (and cheaply) before they are given the chance to worsen. Click here to learn more about these services and the kind of support that is on offer.
Legal fees
Much like the above list, unexpected legal fees can also lead to a lot of financial trouble. For example, you may have expected to be with your partner for the rest of your life, only to find yourself going through a divorce at a later date. In this instance, there are a lot of different legal fees you may need to cover, such as hiring a mediator or lawyer. The easiest way to save money on legal fees is to do your research - don’t just hire the first lawyer you see. Instead, check out a number of different lawyers (and their fees) and work with somebody whose prices are within your budget. You could also save money when divorcing by opting for an amicable divorce, wherein you don’t need to attend court at all.
In some cases, you may be able to save money on legal fees by working with recent graduates or lawyers who have just passed the bar. While they have the qualifications and the insight, being new to the professional realm means that their fees are often much lower than their more experienced peers - but that doesn’t mean they won’t be able to provide you with the legal support and guidance you need.
Home repairs
While you should always be prepared to spend some of your money on home maintenance, an emergency situation could mean that you’re faced with a huge bill. For example, some of the most expensive home repairs include plumbing or electrical faults, which must be dealt with immediately, unlike other areas of home maintenance which you can afford to sweep under the rug a little.
According to a recent article, experts predict that you should aim to spend you should be prepared to spend 1% of your home's value on maintenance each year. The easiest way to ensure that you are prepared for this scenario is by factoring it into your monthly budget and putting some money aside each month into an ‘emergency bank account.’
To put it simply, there are many different unexpected bills that you have to be prepared for in your life. Failing to do so could lead to you spiraling into unnecessary debt. In many cases, most of the above issues can be remedied with forward planning and finding the right insurance policy.
When it comes to insurance, be sure to shop around before you make any payments. Many price comparison websites will be able to do the difficult work on your behalf, factoring in your lifestyle decisions and habits so that you’re able to find a provider that works for you and your budget.
