Unexpected Expenses You Should Be Budgeting For

By Kate
Unfortunately, not all the changes in our life are positive. Some may blow a big hole in his/her budget. To avoid these possible problems with money it is important to know what you should be prepared for.
A report from Bankrate.com showed that 6/10 Americans are not able to cover unexpected expenses. It was found that 69% of silent generation would use a credit card in such situation. In other cases, people would borrow money from family (11%) or reduce spending money on some other things (21%). And only 41% of people from 18 to 29 would use their savings to cover these expenses.

What are the common unexpected expenses?


1. Serious injury or illness

Most people think that the health insurance can cover all the expenses in such situation. But it is not the truth. Most of the health insurance plans require policyholders. It is needed to share cost in the form of coinsurance, deductibles or copayments. 
It is important to find out all the information about your health insurance plan. Especially try to pay attention to the out-of-pocket annual celling. Various companies offer plans with different caps. 
Some people may be unable to work because of the injury. In this case, they will be offered access to an income protection insurance plan. So, you may make sure you get paid during this period of time. 

2. Major home repairs

Unexpected home repair expenses can become a real problem. The main electrical line may quit working or furnace may need replacing. You never know what exactly can happen.
If it is impossible to avoid even minor home expenses, you need to vet the price quotes that you receive. It is better to rely on savings in this situation.  

3. Pets

Most people today have a pet at home. Regular expenses for them is a usual thing. But sometimes they may need emergency surgery. And not so many people are ready to shell out big sums of money. 
Often clinics offer their clients different ways of payment. But one may also try to apply for the payday loans online from direct lenders

4. Vision or dental problems

Expenses related to dental or vision care may seem pretty usual. But it may become a real problem if you have a toothache or you need to buy the new glasses right now. 
Of course, insurance can cover a part of these expenses. But in some cases, you will need to add to the sum several hundreds of dollars. That is why it is important to think about it in advance.

5. Auto care

Car repairs may be very unpredictable. An average car repair might costs hundreds and hundreds of dollars, according to this study. That is why it is not always easy to manage them. Plus, today a lot of firms can make you pay more than needed. 
In such a case one might require a lot of money. That is why many people get into debt. Some companies offer special programs. They allow coping with the expenses in several steps. And it is better to learn more about these companies before applying for their help.

6. Unexpected travel

A trip is a great thing but not an unexpected one. You need to take care of a last-minute ticket, car rental and even hotel in a very short period of time. This means that you need to have a huge sum to cover these expenses.
If you don’t have enough money you may explore some websites to get some discounts, like HotelTonight.com or Kayak.com. 
If you want to avoid big problems, you’d better think about the funding beforehand and start saving money right now. 
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