Turning Emergencies into Well-Laid Plans
Previously, we brainstormed ideas that could be used in case of a job loss. But chances are, a job loss isn’t the only type of financial emergency you’ll face during your lifetime.
And the lower your bank balance typically is, the more likely you’ll be to look at any unplanned financial expenses as an emergency — when they really aren’t. The goal for Day 14 of 31 Days to a Better Bank Balance is to change that.
To do so, we need to identify expenses we should be planning ahead for (but haven’t been) so that they don’t get treated as emergencies.
Here are a few common expenses that are often overlooked until the last minute:
- Car repairs, registration, and insurance
- Birthdays, weddings, Christmas, and other gift-giving occasions
- Eyeglasses and doctor visits
- Kid’s activities, school events, and back-to-school clothes
- Vet bills
- Home and appliance repairs
- Tuition and books
Those expenses are all just a part of everyday life, but because they don’t happen every single month like clockwork, we tend to forget about them. They sneak up on us, and we treat them like emergencies.
Think back over the past year and identify any areas like those that apply to your own life. Make a list, and estimate how much you spend on each expense for the year. Then divide that amount by twelve to get the amount you’ll need to begin setting aside each month so that you aren’t regularly beset by those “emergencies”.
What’s on your list?