Even if you no longer live paycheck to paycheck, life can still find a way to throw a wrench into your financial situation. You might have felt totally confident a week ago that you would come out ahead with enough money to put a chunk into your savings and still live largely. But then, the unexpected happens.
Unfortunately, you can't plan for every possible outcome. However, by knowing what could happen ahead of time this year, you'll be one step ahead and ready to take on any sudden challenge.
1. Job Transitions
Whether you get fired, demoted, laid off, or simply cannot stand to work at your current job a day longer, a change in your employment situation can lead to serious financial upheaval.
Sometimes, this can be a huge opportunity to find a better position in a job that will pay you far better than you could have hoped for. Other times, this is a long-lasting situation that can reshape your monthly budget. Either way, you must remember that no business you could work for is 100 percent stable. Always prepare for the worst while hoping for the best.
2. Auto Repairs
Cars break down. Cars also have a tendency to collide with other cars, trees, concrete dividers, and Wendy's drive-thru menus.
This one, above all else, should be familiar to anyone who has ever owned a car. And if you aren't prepared, even the best money-month can turn into a financial disaster. Do you have an older car? It may not pass inspection, which will put you in the tough position of having to pay for costly repairs or needing to buy a new car.
3. Home Repairs
Whether a tree falls on your roof, a kid throws a rock through your bathroom window, or you catch your kitchen on fire while failing again at perfecting your mom's spaghetti, a home repair could be right around the corner.
Even if you have a healthy home insurance policy, you still may have to foot the bill for a sizeable deductible. No matter how sturdy the structure of your house, it can still sustain all sorts of costly damage you should be prepared for.
4. Utility Bill Spikes
Seasons change, and so do electric bills. Where your bill in the Spring might be a simple $75, a Summer electric bill could look closer to $200 or more.
Depending on the size of your home, your family, or how poorly insulated your home may be, your utility bills will definitely fluctuate. So when you make your monthly budget, always keep your utility bill estimates on the steep side.
5. Unplanned Trips
Your brother calls you from Austin and asks you to pick him up from the airport. The only problem: you live in Longview.
Maybe you leave your dog behind on a family trip to the Grand Canyon and have to turn around to go find him.
Both of these make for some seriously expensive unplanned trips. Gas may look cheap right now, but it adds up quickly!
The moment you have a child, your life changes dramatically. And so will your financial situation.
The truth is, kids are expensive! If you know children are in your future, it's time you rethought your entire budget and prepared for anything life could throw your way with them in the picture.
You may need to pay for field trips at school or additional child care when you need to work overtime. Your child may need orthodontic care or new clothing when they hit a big growth spurt.
7. Health Expenses
Even the healthiest person can face a health crisis with no advance warning. You may need to pay for something as small as an unanticipated doctor's visit or as major as emergency surgery. The most minor health problem can create unexpected expenses you may face in 2020. Unfortunately, medical bills can be some of the costliest expenses you face.
Beyond illnesses or diseases, you can also face unanticipated dental or vision expenses. You may need a root canal, or you could break your glasses and need to purchase new ones.
8. Pet Emergencies
People aren't the only ones who get sick. When budgeting for unexpected expenses, you should also consider the health of your cat, dog, bird or other animal. A pet emergency can cost thousands of dollars. You may consider buying pet health insurance to keep the costs down, especially if your animal is getting older. The older the animal, the more likely they are to develop a costly health issue.
9. Unanticipated Travel Expenses
Sometimes, you have to take a trip you didn't expect. If a close family member passes away and you want to attend the funeral, or your favorite aunt takes ill and you need to help her recover, you have to cover those travel expenses. Having funds put aside for such situations can give you peace of mind in a family emergency.
Have a sudden financial emergency? Stop by your local Atlas Credit location in Oklahoma or Texas or apply online now for a quick and easy personal loan. You have a great shot at being approved on the spot, even if you have bad credit! Contact Atlas Credit today to learn more!