Adulting 101: When You Might Need an Emergency Fund

Posted June 2, 2019 by in Lifestyle

    

As we become responsible adults with our own homes, cars, and independence, we can no longer spend our money frivolously. As well as the monthly bills we have to cover, we also have to start thinking about setting up an emergency fund so that we’re prepared for those unexpected expenses that life can throw our way.

Here, we take a look at the kind of unexpected problems you might need to put your money towards, so that you can start to consider how much to put to one side in readiness:

When You Might Need an Emergency Fund // www.brokeandchic.com

Technology: There are a certain number of belongings which have become necessities to us now, and it’s when these let us down that we have to start paying out. For example, we are now reliant on technology, which is notorious for going wrong, and always costs a lot to repair and replace. A lot of technology has a limited lifespan such as smart phones and laptops, which after a few years are no longer able to keep up with software updates.

If you have a phone, computer, or tablet that is over a year old, starting to save for a new one now would be wise. From cracked screens to stolen laptops, things just happen. It’s best to be prepared, even slightly.

Appliances: Appliances are another necessity which often require repair or replacement at a significant cost. Washing machines, fridges, and cookers are some of the most expensive examples of this. If you rent, your landlord will typically deal with the problem at no cost to you, but if you’re a home owner, it’s on you.

If you are a new home owner and something does go wrong (and you’re not prepared), it is wise to contact a company like GoBear for some short term financial relief if you need it.

Cars: The vehicles we own tend to take up a significant portion of our monthly expenditure, which we are able to account for. They even require more thorough annual mechanical work which we expect, however they also have the potential to rack up huge expenses for us when it comes to accidental collisions and other unexpected damage such as to the windshield.

Health: When it comes to our own health, unexpected things can happen. For example, we may end up needing glasses which can be expensive, or major dental work.

Kids: It is not only ourselves and our belongings that we have to fork out for, there are various other responsibilities to take into consideration too. If you have children, one of the most difficult things to prepare for are school trips which you are only notified about months or even weeks before, and which can cost thousands in some instances.

Pets: If you have pets, they could develop health issues which could cost thousands. The best thing to do is purchase a pet insurance plan to protect your wallet. It usually costs $30-$50/month (per pet). That may seem like a lot, but you would be very surprised by how much a vet bill can be.

Weddings: There are always new events being organized by friends and family which you are obligated to attend, despite the hefty bill that comes with them. For example, as enjoyable as it can be to attend a wedding, you have to take into account the cost of a new outfit, travel, accommodation, and a gift for the happy couple.

Legal Fees: Lastly, you might be unlucky enough to be involved in a situation that could necessitate paying legal fees, for example a divorce or personal injury claim.

As you can see, there are a multitude of unexpected expenses that we need to be prepared for in life, which is why it is so important to start putting money aside into an emergency fund. For more money advice, take a look at this article here on brokeandchic.com.

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