4 Unexpected Expenses To Plan For
You will notice your bills piling up at some point in life, and it’s almost impossible to attend to all of them simultaneously. It’s even more challenging when you have a family to take care of, and your only option is to prioritize what needs immediate attention. A CNBC report stated that only 39% of Americans have enough funds to cater for emergency expenses summing up to $1000. Fortunately, with good financial actions, you can sail the storm. If you find this topic exciting, see below for more unexpected expenses you should plan for.
Statistics indicate that the average monthly cost of vehicle maintenance in the US is $100. That excludes the monthly payments you might be making on your car ownership. Indeed, before purchasing a vehicle, you should know that it requires extra costs to keep it in tiptop shape. Fuelling the car and other relevant servicing must be strictly adhered to if you want to keep the vehicle running for long.
However, sometimes, it is a must to replace a major part of your vehicle. For example, what would you do if your engine gave up and your mechanic recommended a new one? Indeed, that will take you by surprise, especially if you have no savings for that. A 4-cylinder engine will cost you almost $5000, and that is minus the cost of labor. An immediate solution will be to park the car until you have funds for it.
Plumbing works and other unexpected home repairs can take a chunk of your savings. A 2020 household survey indicated that the average American spends $3,192 on home maintenance and another $1,640 on minor repairs. The amounts vary depending on the state you’re in. For example, the cost of home repairs in New York is higher than you will spend in Texas. Additionally, when you move upstate, you will notice the fee variances when you pay a maintenance electrician.
Home repairs are constant, but for some reason, they are unexpected because you never know until it’s time to fix something. However, if you live along the US coastline, home repairs are almost unavoidable because of hurricanes.
Nobody likes medical bills. Especially in the United States, where the cost of medical care is an arm and a leg, most people tend to avoid hospitals. A medcity.com report stated that one out of five Americans is unable to afford primary and necessary healthcare. This represents 46 million people in the country. The sad part is, you never know when your health will take a turn for the worse.
Before you know it, what you assumed to be a tension headache is actually a brain tumor. What would you do without medical insurance? Furthermore, even with medical insurance, your coverage may be limited and will not fully cover the expenses of your medical condition. Indeed, stories like these are rife in the US. That’s why financial experts recommend keeping an emergency fund to take care of such unforeseen circumstances.
Across the US, 49.6% of households do not have home security systems. If you fall under this category, you run a risk of experiencing home burglary. If it happens, you will be compelled to replace the items you lost, which is an unexpected expense. The agony of loss will be felt more when you must dig into your savings.
Indeed, unexpected expenses are unavoidable, but you can reduce their impact on you and the family with adequate planning. Having a strong savings habit can spare you from inconveniences.