You never expect your refrigerator to stop working or your car to suddenly break down. But unexpected expenses have a way of popping up. Whether it’s something joyful (three friends of yours have each gotten engaged, and you’re invited to all three weddings!) or something difficult (that little noise you’ve been hearing is a whole family of squirrels who’ve taken up residence in your attic), these unplanned costs sometimes appear out of nowhere.
And when they do, you may not have cash on hand to address them.
Here’s the good news: It’s possible to get prepared now, so that when unexpected expenses do pop up, you’ll have a plan in place for handling them. These five smart money moves can help:
Make a list of the possible expenses that could be on the horizon in the next year. Although you can’t predict what’s coming up, you can sit down and map out any major life events that you know are coming in the year ahead – things like graduations, weddings, new babies, changing jobs or moving houses.
Make a list of costs that may crop up and strategize ways to save (recruiting friends in advance to help with a move and offering to help them out with something, or planning to carpool with friends or relatives to an out-of-state wedding).
Start a savings account now, before expenses pop up. At 1st Franklin Financial, we have customers who start with as little as $25. Over time, that money earns interest and keeps on growing. Our Georgia customers who put money on the Senior Demand Notes savings path can withdraw their money at any time with no penalties for taking it out.
Our team can walk you through all the savings plan options available and give you advice on finding the right way to make your savings grow. Even if you don’t live in the state of Georgia, talk to your local bank about opening a savings account where you can put aside a bit of money each month to be prepared for the future.
Do some preventative work on your car and home. Although car repairs can’t always be predicted, it’s good to keep up with oil changes and tire rotations, and other maintenance.
The same goes for a house. Once every six months, take a walk through your space and check for signs of wear. Dealing with an electrical or plumbing issue when it’s minor can be far better than waiting until a small problem becomes a big one.
Same goes for outdoors: If you can patch an issue with your roof or repair a crack in your foundation before a heavy storm, you may avoid a leaky attic or flooded basement.
Consolidate your credit card debt and bills into a fixed-rate personal loan. You may end up saving a bit of money each month by paying less interest over time and having reliable payments of the exact same amount each month (no surprises).
That extra money you’re not spending on interest payments can go into your rainy day savings fund.
Research loan possibilities before you need one. At 1st Franklin Financial, we make applying for a loan easy and our approval process is simple. Folks often have their money within just a day or two, but not all companies do things the same way.
By looking into loan possibilities in advance and learning more about what’s possible, you’ll have a clear plan in place if you decide it’s time to apply for a personal loan.
If you have any questions or want further advice on being ready for unexpected expenses, our Friendly Franklin Folks are happy to help. Drop by one of our neighborhood branches to say hello or give us a call to learn more about saving, budgeting and getting approved for personal loans.
We’re here for you, no matter what unexpected expenses life brings!