For those that constantly worry about their financial situation, there is one thing that concerns us more than anything. Namely the sudden burden of dealing with unexpected costs. Having to find more money than normal can be extremely stressful. We took a look at how best to deal with such situations.
We can all be caught out by unexpected bills. And studies have shown that for 40% of us, an unexpected cost is not easy to deal with. And that is nothing t be embarrassed about. We cannot all have money put aside for such an occasion. Life is expensive, and it is natural many of us struggle on what we earn. This will only become a bigger problem considering the events of the past year or so.
This is the best way to deal with unexpected costs, but it is simply not feasible for many of us. It requires debts to be paid off first, as they should be your priority. After that, you can think about saving. It requires discipline, and it may require sacrifices too. You must look at your finances and work out if you can lower costs without affecting quality of life. We all probably have needless costs in our monthly budget, but many of us make little effort to correct such instances. If you can cut costs, that money can go straight into a savings account. Then when you most need access to funds you will not have to go into debt. Discover out where you can make those savings by using the Money Advice calculator by the Money Advice Service. Here you will obtain free and independent financial advice from a service set up by the Government.
So where can you reduce your costs? The obvious place to start is with your grocery bills. We have written extensively on the matter, so do check out our blog section to learn more. But very briefly, there are a hundred ways to reduce your grocery bill. Use offers online, use offers, but only for items you intended to purchase anyway. Be disciplined, which includes always shopping with a list of what you need. Bulk buy to get better value for money, and shop near the end of the day for additional bargains. Frozen food is often better value too, just ensure quality remains.
There’s lots of auction websites (obvious example – eBay) now making it as easy as ever to dispose of unwanted items whilst making a few pennies to help you get by. Consider old tech, much of which still may hold significant value. And look round your home. You may surprise yourself at how much you own that you never use or even look at. If so, get rid of it.
Have you ever been saving for a big purchase and an unexpected expense comes up? Then the sensible option is to put back your big purchase and use the money for the unexpected cost. I know it is not what you want to hear, but it is for the best. And that purchase will be all the sweeter for the extra wait. But you must prioritise where your earnings go.
There is only one ideal way to deal with an unexpected cost. And that is to be prepared for it. So even if this is not an option for you right now, make the following the goal. Namely, always having at least a small amount of money in reserve for a rainy day or for an emergency you did not see coming.