Saving money is easy once you’ve figured out how to cut your expenses and you start sticking to a budget. The only thing that can set you back now are the unexpected big costs. You can’t predict the future, but you can protect your hard earned savings by looking for alternative ways to afford these unexpected bills.
It’s bad enough being too ill to make money, but it’s even worse when you get slapped with a medical bill at the end of it. Fortunately, there are ways you can pay your bills, even if you think you can’t afford them. The first thing you should do is check for any mistakes – a shocking amount of bills contain clerical errors that can lead to overcharges. Once you’ve identified these miscalculations, haggle with your health insurers. It also doesn’t hurt to find out if you qualify for any medical assistance.
A patio or small extension can add value to your home, but this expense can quickly get out of control if you don’t keep a firm eye on your purchases. The cost of renovating your home can also fluctuate depending on what you want doing and who you hire to do it. Fortunately, there are many ways homeowners can fund home improvements, one of which is a home equity line of credit. This is a good option if you already have a good first mortgage. With these loans, you draw out money as you need it and pay it back at your own speed, as long as you make at least minimum monthly payments.
A broken down car is both expensive and inconvenient, but it’s another cost altogether if you need to buy a new one. While you probably didn’t factor in having to dip into your savings for a new vehicle, this doesn’t have to be as expensive as you fear. Shop around for current used car loan rates and find a way to protect your savings, while getting the best car you can afford.
Unexpected expenses, such as emergency home repairs, can blow the biggest dent in your savings and leave you back to where you were before you began putting money aside. You can’t predict the future, but you can put some money aside for a rainy day. Make a list of common seasonal expenses, such as property taxes, Christmas and birthday presents, car repairs, or vision and dental bills. Then look at your bank and credit card statements to see what irregular expenses you paid for with credit. From here, you can calculate how much extra money you can automatically set aside in a different account. The next time you need to dip into your savings, you can be pleasantly surprised when you see how much you have saved.
It won’t hurt any less to see your finances go down the drain. However, it does take away some of the sting by having some money management plans in place.
*This post was contributed. Family friendly post are welcome.