4 Emergencies to Budget for with Your Family

An emergency can happen to any family at any time. Some family emergencies can be expensive to manage, and you can prevent a lot of stress and financial trouble if you are able to budget ahead and establish an emergency fund. 

Here are four types of emergencies to budget for with your family.

Loss of Job

Loss of a job is a big financial emergency. The COVID-19 pandemic has resulted in more than 22 million Americans losing their jobs as of April 2020. Unemployment takes a while to kick in, and not everyone qualifies for this compensation. Consider having six months' worth of living expenses saved in case of a job loss.

Car Breakdown or Accident

Most people need a car to get to work. If your car breaks down, not only could you find yourself out of a job, but you also have to come up with the money to arrange for an unexpected car repair. According to Legacy Auto, a provider of car repair services in Boulder, CO, it is a good idea to have a maintenance and repairs fund for your car. 



As cars get older, they are more likely to need pricey repairs, such as new brakes. If you are in a car accident, you could also be subject to a deductible before your coverage kicks in. Consider budgeting so that you have at least the amount of your deductible available for a car emergency.

Medical Emergency

Medical emergencies are one of the most common reasons why people go into debt. Many people have high-deductible insurance plans that only kick in when they reach a large out-of-pocket threshold, such as $10,000 or even more. Even if you do not have a high-deductible plan, a medical emergency can still be catastrophic to your finances. 

If possible, the budget for your out-of-pocket maximum expenses. You could have this money in a tax-free FSA or HSA. Some of these plans allow you to roll over the funds you do not use in a given calendar year.

Major Household Repairs

Major household repairs can take a big bite out of your bank account. If your furnace or heat pump suddenly fails, you could be looking at a $3,000 to $6,000 replacement cost. A sewer line failure or burst water pipe could cost thousands of dollars to repair. 

A sudden crack in your home's foundation might necessitate extensive repair work costing tens of thousands of dollars. Masonry and electrical repairs are also essential and expensive. If your home needs a new roof, you could be looking at a $5,000 or more expensive. 



A failure of your refrigerator or oven could also be pricey to handle. Several websites list the average lifespan of different parts of your home and home appliances, and you can use that information to plan when they will need to be replaced. 

Some emergencies might be partly covered by your homeowner's insurance, such as a hailstorm that damages your roof. However, you will need to have the cash on hand for the deductible. Insurance companies also factor depreciation when compensating you for covered losses.

Other Minor Emergencies to Consider

Above are four major emergencies that you should budget for as a family. However, a series of minor emergencies could also have a considerable impact on your budget, explains U.S. News and World Report. 

If you had to take an emergency trip out-of-town for a funeral, travel, and lodging could be pricey. A sudden move can also be expensive. Perhaps your landlord decided to sell the house you're renting, or maybe your job decided to relocate you to another city. Maybe you have to take in a niece or nephew, grandchild, or parent. 

The cost of living increases can also impact your finances, especially if your health insurance or car insurance premiums, rent, or utility costs go up without a corresponding increase in your paycheck. You also need to have a budget and plan in place for these situations.

These are not the only emergencies that could impact your household, but they are common. It is wise to expect the unexpected and have a plan in place for anything that might happen. Planning and budgeting give you some peace of mind that you can weather an emergency without having to go into a lot of debt.

Senior Situations: 4 Tips to Help You Survive a Financial Crisis

Most seniors are on a fixed income, and that will make it very difficult to deal with a financial crisis. From unexpected injuries to household disasters, older adults could find themselves drowning in debt in the blink of an eye. Here are a few tips and tricks that will help seniors survive a financial crisis.

Start with an Emergency Fund

Older adults need to have some type of emergency that they can access at any time. As a general rule, your emergency fund should be able to cover all of your expenses for at least three months. 

If you have people who depend on you financially, then you should try to build an emergency fund that will cover all living expenses for six months or longer. That fund will give you plenty of time to reorganize your finances after an accident or injury occurs.

Downsize

A senior who is on a fixed income never wants to get too far behind on their bills, and you should consider downsizing if your monthly expenses are beginning to overwhelm you. Living in a larger home or driving a new car might be impractical luxurious once you retire. Moving into a condo and downgrading to a used car could end up saving you thousands a year.

Search for Assistance Programs

There are hundreds of assistance programs for older adults who are struggling with their finances. In addition to state and federal programs, you might also want to contact AARP to discuss their Daily Money Management (DMM) programs. 




Those programs can help a senior create a budget, pay bills, and negotiate with creditors. They also offer classes on how to avoid scams and what to do if you are being harassed by aggressive debt collectors.

Contact an Attorney

If the financial crisis was caused by another party, then you need to contact personal injury lawyer to explore your legal options. Trying to win a civil case on your own is going to be nearly impossible, and an experienced lawyer can help you get the compensation that you deserve. Your legal representative will also negotiate with insurance representatives if your claim never makes it to court.

Racking up credit card debt is never ideal, but a credit card could be your last line of defense against a financial catastrophe. Once you are back on your feet and things have begun to stabilize, you should aggressively pay down your credit card debt in order to avoid huge late penalties and unmanageable interest rates.

Worst-Case: 3 Ways to Bolster Your Finances Against Catastrophe

Many people will have at least one unfortunate experience that creates intense financial stress, and some people will experience several of these events over the years. These catastrophic events may create financial stress through expensive medical bills, property damage repairs, required unpaid time off of work and more. 

Keep in mind that many of these issues may yield a combination of unexpected expenses, and this can dramatically multiple the financial stress that you may be feeling. 

For example, when you have to take time off of work for an illness, you may be reeling from lost wages and medical expenses at the same time. Planning for these types of events now can help you to be prepared for what the future holds.

Bolster Your Emergency Savings Account Balance

Regardless of your current financial situation, you need to have a well-funded savings account. This is separate from your investment and retirement accounts. The funds are specifically earmarked for emergency situations. 

You may initially save up to three months of expenses in this account, and you may want to work on expanding the balance to a full year of expenses.

Live without Debt

Debt can cost you a small fortune on a monthly basis. This is through the principal reduction and interest charges. You may also have to pay annual fees, late fees and more. 

These are unnecessary and avoidable expenses that unfortunately weigh down your budget on a monthly basis. When you pay off debt, you eliminate these unnecessary expenses, and you have more money available to cover unexpected expenses through your regular income. 

You may also be able to save more money regularly so that your emergency savings account is funded.

Purchase Insurance and Warranties

Another important step to take to prepare for the unexpected is to purchase insurance and warranties. A home warranty from a company like America’s Preferred Home Warranty can cover most or all expenses related to breakdowns and deficiencies in the home. 

There are also multiple types of insurance coverage that you should consider purchasing for additional financial protection. These include home insurance, life insurance, auto insurance and more. Ensure that you have adequate coverage with an affordable deductible so that you can maximize the benefits of your insurance policies as needed.

You cannot always control the events in your life, and some unexpected events can create tremendous expenses with no advance notice. While you may not know when things will happen or what those things will be, you can follow these tips to financially prepare yourself for the unexpected.

3 Financial Emergencies And How You Can Handle Them

Life can be blissful and enjoyable most days, but few people will walk through their entire lives without experiencing at least a few emergency situations. 

Crises can be emotionally and physically difficult to bear, and many of them can also cost a small fortune. 

Some people will have enough money saved in a rainy day savings account to pay for minor issues that develop, but there are some events that can be more expensive and more challenging to pay for.

A Car Accident

With a minor fender, you may simply pay your car insurance deductible. This is usually a few hundred dollars. 

Insurance will pay for repairs to your car, and you will not need to miss work. However, with a more serious accident, your insurance coverage may not pay for all of the expenses. 

Perhaps the other party was not insured. When you run into this type of burdensome situation, an installment loan from a company like Las Vegas Finance may provide you with the financial backing you need, just be sure to pay off any debts as soon as possible.

A Serious Illness

Some people will develop serious illnesses that leave them bedridden for weeks or months. During this time, medical bills may accumulate, and you may not be able to work. 

Purchasing supplemental insurance now can help you to prepare for this type of event. However, you may also need to dip into your retirement account to pay for your regular monthly expenses and medical bills until you can manage going back to work.

Damage to Your Home

From fires and floods to hurricanes, tornadoes, earthquakes and more, there are many unexpected and severely damaging events that can destroy your home. 

In addition, the personal contents inside the home may also be destroyed. Most homeowners have ample property coverage to pay for this type of event, but you still need to pay your deductible. 

Your deductible may be as much as one to two percent of your home’s value. Taking out a loan is a great way to more easily pay the deductible as needed.

You can purchase various types of insurance to help you to plan for worse-case scenarios. This includes health insurance, disability coverage, property insurance, an auto policy and more. 

However, you still need a way to pay for the deductible, time away from work and more. Take time to analyze your current disaster plans, and think about how you will pay for your unexpected expenses. 

By developing a plan now, you will be better able to navigate through events when they arise.

Monetary Mayhem: How to Handle Financial Emergency Situations with Ease

It seems like there's always something that comes up that means budgeting for more money to be paid out each month. There could be a decrease in the number of hours that you work or an unexpected bill that arrives in the mail. 

You might have an issue with your car or an appliance that requires attention from your finances. With a bit of planning and a few tips, you can easily handle any financial emergency that life throws your way.

Savings Account

Any extra money that you bring in should be put into a savings account. This account would be used for emergencies that arise if you were to lose a job or not be able to work as much due to an illness or injury. 

This account could also be used for Christmas presents, school supplies and other things that are needed for the kids and for the home without worrying about taking money from your check each week.

Loaning Money

If it comes down to it, consider taking out a loan from a payday advance service, such as American Cash Advance and Title Loan, or even a financial institution. Look at the

interest rates that are presented by the office along with the amount of the payment that will need to be made each week or month. 

You could also talk to family members and friends to see if they can loan you a small amount of money to get through the emergency. Create a plan together to pay back the loan instead of just giving your word that the money will be returned.

Make a Plan

When you realize that you're in a financial emergency, the money that you do have can be depleted fairly quickly. Think about what's most important to pay, such as the utilities and the house payment, and what can be put off as long as possible. 

Ask for help from community organizations for food or any other kind of assistance so that you can put the money that you have to other bills. Set up a plan with creditors so that they will know when they can expect a payment from you.

Earning More

Try to find other ways to make money. It could be holding a yard sale, making baked goods to sell or even joining sites online to take surveys to make money. Any extra money that you can make should be used for the essential bills to get them paid down.

Not knowing where your next check will come from can be hard. It makes budgeting a nightmare, but if you have a plan of action, then you can live a little easier even with an emergency. Prepare the family for what could happen so that they can help in their own ways, such as using less electricity or less water.