How to deal with unexpected expenses

How to deal with unexpected expenses

Sometimes things can go a bit wrong and you end up with some expenses that comes completely out the blue. Don’t worry, it happens to us all at some point. But, even though I’ve just told you this, when an unexpected expense pops up it still comes as a shock, even though you expect the unexpected. This is probably sounding like a paradox wrapped in a conspiracy in a hole with a white rabbit. But never mind all of that, here is what you can do when you discover an expense.

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Always expect the worst

While it might be tempting to think that everything will be ok, and a good lot of the time it is, things can go wrong. The simple fact of life is that shit happens and we have to deal with it. Or, as someone once told me, life should be viewed as a heart monitor and is full of ups and downs, the moment that line goes flat, you’re dead. Look into what can possibly go wrong with your world and see if there are any insurances that can help to cover you. When you look into the different types of insurance, you would be surprised what can be covered. For example, many house insurance providers cover your boiler and heating system in the event of a fault or breakdown. You can insure your phone against accidental damage. There are so many expenses that can be covered so have a look around and see what is out there.

Sell sell sell!

If you get hit with something and don’t have the funds to fix it, then try selling something. There are loads of different sites to sell stuff that you don’t need anymore, or you can pack up the car and head to your local car boot sale. But some items need a specialist to give them a popular look over. If you have jewellery that you think is worth a pretty penny, take it to your local jeweller and have it appraised. They might even be in a position to buy it off you or sell it on your behalf.

The bank of mum and dad

I shouldn’t admit this but I’m a grown woman and I still have to ask my mum for a loan from time to time. Just last week I had to ask my mum for some money because my psycho landlady started phoning me three days before the rent was due for her money. Honestly, I can’t wait to move! But, the point is, even I have to ask my mum for a wee loan every now and then. Most parents (in my experience) are happy to help when it comes to a wee loan for an unexpected expense if they can. Let’s face it, they are your mum and dad, and if you don’t ask then you don’t get.

Get to the bank

I used to work in finance so I know how it all works. Depending on your credit history and your relationship with the bank, you might find yourself in a position that you can negotiate a good deal on a loan or overdraft. It is always worth your while booking an appointment in branch once a year to have a look at your accounts and see what deals you can get. Why in branch and not online? Because there are in branch advisors that have been trained to a higher standard than the guys in the call centres, and they have the power to override the system if needs be. The guys at the end of the phone can do a lot but unfortunately, they don’t have that power.

Never underestimate a savings account

Believe it or not, I used to would in savings and investments, and I cannot stress the importance of having an instant access savings account to help with expenses. Most banks offer an internet-based savings account that you can get instant access to, and most of these accounts can be opened with a £1 deposit. I would suggest having at least two of these accounts. Why two? Have one account for a rainy day fund and another for any big buys like a new car or holidays. Having a savings account or two can really help take the sting out of any expenses and can help to keep your finances in better shape.

What do you think? Have you ever had an unexpected expense? And how do you deal with them? Let me know in the comments section. And don’t forget to check out some of my other posts about money management-

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