A sudden emergency can cause a huge dent in your finances. That’s why it’s so important to make sure that you have enough cash in hand to cover whatever life throws at you. A good rule of thumb is to have six months of monthly earnings in savings that you simply do not touch unless there is an emergency. To show you the importance of saving money for unlikely events, this guide has been created. Read on now for four emergencies that you should definitely save money for.
Car Breakdown
One of the most annoying events that can befall you is your car breaking down. That’s why that it is absolutely imperative that you have enough money to weather this cost. If you don’t have enough money on hand there are some good solutions. For example, if you get an auto repair bill and cannot properly pay for it, then perhaps it is worth getting an auto repair loan. With a great provider you can obtain the money to repair your vehicle now, while then only having to pay monthly installments back to the loan provider.
Pet Costs
If you own a pet, like 70 percent of Americans, you will probably be aware of the rather large costs involved in their care, coming in between $800 and $1,500 for an unexpected event. It is deeply important to make sure that you have enough money to cover for the care of your pet, because then the only other option may simply be to put them down — something which can be rather disastrous for you and your kids. Simply put, you should have between $1,000 and $2,000 in savings handy to care for your pet, even if you already have insurance!
Funerals
The death of a loved one is naturally a very tragic event, but this sadness and stress can be significantly compounded with the huge costs involved in a funeral, averaging between $7,000 to $12,000 to arrange. A lot of people are completely unprepared for these types of costs, with a lot of poor Americans simply unable to pay for it. This is why it is important to both have life insurance for your loved ones and to make sure that you have enough savings on hand to give them the send-off that they deserve. Otherwise, you may not be able to say goodbye to the one you love in a proper fashion, giving you immense emotional grief.
Large Gifts
You might not see them as an emergency at first glance, but having to chip in or buy an expensive gift for a loved one, whether it’s a special anniversary, birthday or wedding, can represent a significant drain on your finances, especially if you are not prepared. That’s why it’s a good idea to have put some money on the side, so when you are put in a position to buy that present, you can do so without breaking the bank in the process.
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