How To Prepare For The Unexpected Outgoings
Across the UK, there are millions of adults who do not have any savings to fall back on when emergencies hit. This leaves them scrambling to find some sort of escape from the debt which could potentially be coming there way. Despite being able to turn to family and friends or even borrow a loan, there are plenty of ways in which you can prepare for the unexpected outgoings you may face at some point in the future.
The most common issues people face is being surprised with something broken or even just a bill. But, you never know when they will appear, hence the need to prepare for the unexpected outgoings.
Work them into your budget
After finding a budget suited to you and your spending patterns you will be able to find a way to separate a certain amount of money from a section in your budget with can be changed. For example, if you have categorised your budget you may have a section which is used for the things you ‘want’. This is the easiest section to adjust. We advise you to use money from here and transfer it into a different bank account, this way the money is untouched but can still be accessed when needed.
How to plan for them
Typically, unexpected outgoings are not actually that unexpected. Yes, you may not have thought that they would occur in that exact moment, but you may have known they were coming. For example, if you own an old boiler which is on its last legs, the chances of it breaking are higher in the wintertime over the summertime. So, this means you should try and account for this in your budget when heading into the winter period. Following this, if it does not happen, you still have money saved for something else which potentially could!
Start an emergency fund
Creating an emergency fund is the best way in which you can prepare for unexpected outgoings. We understand that budgeting alone is difficult, so budgeting for something so uncertain is definitely not something we like to do. But, it is something which we all should do to avoid ending up in debt. An emergency fund is very self-explanatory, it is something which we use to save for emergencies. All you need to do is add a specific, worthwhile amount into this account each week or month. This way you will be able to build up a sum of money to rely on.