Budget For Unexpected Expenses
We all have experienced an unexpected expenses at some time or another, and sometimes like Murphy’s Law whatever can go wrong will go wrong then all of a sudden multiple expenses will rock up your door. These are the times that you must have some money stashed away. This is why it is important to budget for unexpected expenses.
Examples Of Unexpected Expenses:
- For a doctor or medical emergency – Illness or injury is always unexpected we never know when it might happen to us. If you not covered by a medical aid then set aside some money for when you might need it. Or else subscribe to a hospital plan it is cheaper than paying for a full medical aid scheme. Then at least you will be covered if you need to go to a hospital.
- Car Troubles – Keep your car well maintained and make sure you get a report when you send it in for a service. The report must indicate which parts might need replacing in the near future. We cannot foresee when something major might break on a car so having money at hand to replace the broken part will be a life saver.
- Home building maintenance and repairs – Most times we delay the repairs on our homes, but just in case a door lock break, the electrical box gives in or some plumbing must be fixed. These repairs can be expensive and sometimes a call out fee is also requested just to give you quote. So it is wise to keep money aside for any of these unforeseen repairs.
- Insurance excess – Whenever you want to claim from your insurance being it for home or car damage you must pay an excess fee. Depending on who you insured with and the value of the item the excess fee can between R2000 to R5000.
What To Do IF You Have No Emergency Fund:
If you do not have an emergency fund at hand your only option will be to borrow money from a family member, friend or micro-loan provider.