Certain costs in life are completely unpredictable. However, you can still prepare for them and manage them more effectively by saving up the right amount of money. Let's explore some examples of costs like this so that you know what to expect.
First, you should make sure that you are prepared for unexpected and tragic situations such as a death in your family. As you get older, you might need to be prepared for your parents' passing away. Ideally, their assets should cover the cost of funeral expenses. However, this isn't always the case. Particularly, if your parents have no money to their name when they pass away. If this is the case, then the cost of the funeral and other expenses will fall on your shoulders. This could include paying for a funeral director as well as various other requirements. While this is a morbid possibility, you may want to discuss this with your parents.
The majority of people today will pass through more than ten jobs before they retire. While some of these changes will be by choice, others will be due to redundancy. It's important to be prepared for this. You should also be aware that it often takes at least three months to find another job in your chosen industry. This means that you need to have savings that will cover this time period. In doing so, you can avoid a situation where a redundancy slowly but surely pushes you into debt.
Do you rely on your car to earn a living? It's possible that you need your car to get to work on time each day. If possible, you should avoid being in this situation and ensure that there are alternative ways for you to get to work. In this instance, if you can't do this, then you should make sure that you have about £500 available for typical car costs. That way, you can avoid a situation where you are unable to get your car repaired immediately. Car repairs can be anything from a replacement tyre to a broken radiator.
Finally, you should also make sure that you are prepared for damage to your home. If you own a property, it's important to understand that you will be responsible for any repairs that are required. Some of these will need to be completed as quickly as possible to ensure that you maintain your quality of life. For instance, you might have a broken boiler. This can be a nightmare during winter. The best way to manage this is to complete regular inspections at least once a year. This can be the difference between an unaffordable replacement and a more manageable repair.
I hope this helps you understand some of the key things in life that you do need to save for in life. In doing so, you can avoid the bills mounting, even over a short period of time. This is often critical to avoid situations that lead to debt.
What are your tips for preparing for any unexpected costs? Let me know in the comments.
Love Beth xx