3 Tips for Cushioning Yourself against Emergency Expenses
If you listen to financial surveys that get released from time to time, you will come across the pretty alarming fact that a huge proportion of people across the Western world are living paycheck to paycheck, with just about nothing in the bank, and would consequently be in serious trouble if an unexpected expense arose.
There’s a good likelihood, if you’re reading this, that this situation applies to you. So, what would happen if you did get landed with an unexpected, emergency expense? That’s a meaningful question, since such expenses find us all, from time to time.
You could take out a backed loan from Guarantorloans.com, at a pinch. But it would definitely be preferable to avoid the situation in the first place.
Here are some tips for cushioning yourself against emergency expenses.
Prepare in advance, by continually saving up for emergency and unforeseen fees
Living within your means is absolutely crucial for living a calm, and financially secure life. And what that means, essentially, is that you should always structure your expenses so that they don’t exceed your income, and so that you don’t live on credit.
If you manage to live within your means effectively, there should always be a small margin of your income (even if just a few dollars at a time) that you can assign to an emergency savings budget category.
The surest defence against emergency and unforeseen fees, is to prepare in advance, and continually put aside money for those “surprise” expenses.
The hope is that those expenses will come seldom enough that you will have saved up a substantial buffer against them when they do arise.
Keep your health and energy levels high, and take care of yourself, so that you are more resilient when things go wrong
Things go wrong from time to time, financially and otherwise, and that’s just a fact of life.
When things go wrong in your career, in your financial life, in your interpersonal relations, or any other dimension of your life, you can often absorb a major part of the potential damage, and offset a lot of the potential financial chaos, if your health is good and your energy levels are high enough.
When your health is good and energy levels are high, you are less likely to be hit with unexpected medical expenses, and you will be in a much better position to “hustle” and work overtime to make ends meet — or to stave off disaster in the first place.
Keep your obligations and goals carefully recorded in an intuitive format
Unforeseen expenses are often unforeseen simply because we have allowed ourselves to become disorganised, and not because there was actually no way of predicting them.
If you keep your obligations and goals carefully recorded in an intuitive format (such as in a Bullet Journal), and are always aware of when bills and renewal fees are due, you will be much less likely to be taken unawares by bills of all sorts.
Be organised, be aware of what’s happening in your life, and plan accordingly. The impact can be dramatic.