Life has a way of throwing us curve balls. Just when we think we have everything under control (especially our finances), something crops up and demands more of our money than we have. This is exactly why a lot of Americans take out costly credit cards and loans, despite being taught surviving off credit is generally a pretty bad idea.
Putting away a small nest egg to cover emergency expenses may mean pinching pennies for a little while at first, but trust us — having some money socked away for these emergencies will ensure your life is a little less painful in the long run.
Emergency Room Visits
Sudden injuries and illnesses just happen. Nearly every American has experienced at least one ER trip in their lifetime (some more than one). Consider that each of those visits can cost an average of $1,233 and it’s easy to see why many avoid the ER at all costs.
Second only to emergency room visits, and often more expensive than a human medical emergency, is a veterinary emergency. When Fluffy gets hit by a car, experiences bloat, breaks a leg, or otherwise requires immediate care, costs can add up quickly. Prices for vet access around the country vary dramatically, but can easily escalate to the thousands with just a few tests and procedures.
There’s nothing like waking up to the sound of rushing water — unless you’re at home, and it’s your plumbing that’s causing the sound. Each year, Americans face exorbitant repair bills when water heaters and pipes break down. Extreme water damage, especially if running water is left unchecked, can even damage a house so badly it may be impossible to restore.
Old electrical panels and wiring can be a disaster waiting to happen. It takes just one short-circuit to blow fuses, interrupt power to the entire house, blow electronics, or worse yet, cause a fire. The fallout from a poorly maintained electrical system isn’t just dangerous for your wallet, it can place your life at risk, too.
We all know at least one person who seems to break or lose their smartphone every few months. That can become an expensive endeavor fast, especially considering the average device now runs in the hundreds. If you’re still under contract, you’ll find yourself responsible for paying the bill and finding yourself a new device. Insurance can help, but only if the deductible is low enough to make sense for replacement.
Sick Family Members
There’s no predicting when a loved one will become ill, and it can impact your finances in more than one way. You may need to take time off, invest in transportation to see your loved one. Even small costs like hospital parking or meals out during stressful times can really add up. Depending on your relationship, you may even find yourself suddenly the sole breadwinner temporarily.
Sometimes you’re the mosquito, sometimes you’re the windshield. When it’s you who gets sick, managing your expenses can become virtually impossible. Even just a few days away from work can be enough to interrupt your budget.
While a lot of financial experts recommend keeping one to three months of expenses in savings at all times, we all know that can be tough, especially during already difficult times. Putting even a small amount away each pay period will help you build up an emergency nest egg. Even if it doesn’t cover the entire emergency, it will help soften the blow.
~Here’s to Your Financial Health!