You never know what is in store for you in the future. Therefore you should always be prepared for anything be it good or bad what comes in your way. In most cases people face financial difficulties if anything comes accidentally on their way without any previous notice. You should have sound financial backup to face any kind of challenges be it health issues or property issues or job related problems. If not that serious, you may suddenly find your computer completely crashed and you need an immediate servicing for which you need to spend a few bucks instantly without any prior intimation.
This article will share a few strategies to help you to survive in such situation. Any type of financial struggle is quite frustrating but if you have the ability to manage the situation then you can be into a better mood.
Expenses you need to bear: It is not always necessary that you have to bear the expenses of the mistakes that you are responsible for. For example, if you shift into a new rental accommodation, you may find that the tap in the kitchen is broken. May be you have not used it once and this has been done by the previous owner, but you have to bear the cost of this as it is an emergency and you cannot afford to keep it as it is.
Apart from that, there are a number of expenses that you need to get prepare for. You should plan for the things like house renovation, car servicing, servicing of Air Conditioner and other electronic appliances in your home etc.
An Emergency Fund: You should always save a fixed amount of money every month and keep it aside as an emergency fund. This fund can help you to manage the expenses that comes suddenly on your way. Following are some sudden expenditure that can come into your way:
- Sudden rise in gas cost
- Health issues
- Sudden rise in food cost
- Higher tax and premium rates
- Unexpected job loss and many more.
These are some problems you cannot avoid even if you try hard. When you know that you have to face them then it is better to get prepare for these in advance.
Sacrifice the planned purchase: Many people do not have an emergency savings. But most of them save money to buy something. It is very common to save money to buy something that is expensive. When anything happens and they need money they often use that money to make up the situation. They simply stall the plan of buying that particular thing and transfer the entire fund into an emergency fund to face the crisis.
Drop some investment plans: If you have invested your money in many investment policies and some of them you find are not running well you can drop them immediately. Dropping these plans can be further advantageous for you as it can reduce the amount of taxes you need to pay. You can redirect those extra cash towards the emergency funds.
Debt Consideration: many of us do not find any other options apart from going for debt if anything unexpected happens in our lives and we need money to face the situation. But before opting for a any particular debt plan you should thorough research on it and check the terms and conditions. Because there are number of financial agencies that offers loan initially which can be dangerous later.
Trade for extra money: These days it has been quite a common practice to trade your used items which are no longer necessary to earn extra money.
It is always suggested to avoid indulging yourself in any type of bad debt which can later eat all your savings. You should better try to save money rather than taking debt to face any financial crisis or emergency.
About the Author:
The above article is managed by Jonny Pean, a freelance columnist for easyfinance. He is an MBA and is associated with a Financial organization in USA. In his free time he writes articles related to money making, financial advises, loans, online loans, personal loan and etc.