When it comes to your financial situation, one of the most important things to do is save money. We hear it all the time from our friends and family members, but a lot of people don’t actually understand the importance of saving money and the difference it makes to your future. A lot of people are all too willing to spend money as soon as they make it, but the reality is that you need to be more thoughtful about how you spend money not because of your current expenses, but because of future ones.
Among those future expenses, we can probably think of some obvious ones that stand out. Perhaps you plan to have children in the future, meaning you’ll need to pay for everything they need including schooling fees. Or maybe you’ve already established a family and are more concerned about your retirement. Everyone’s going to need some form of income after they stop working, so you can probably imagine how much money you’d need to save up.
In this post, we’re going to be talking about five future expenses that you definitely want to plan ahead for so they don’t catch you off guard.
- Disruptions to your way of life
There are a number of different disruptions to your life that could become expensive to overcome. For instance, if your computer suddenly breaks and you work mostly from home, then it’s going to cost a lot since you need to replace your computer but also because you’ll be losing money from being unable to work. Similarly, your car breaking down is going to make it difficult for you to get around. In order to repair these things quickly to get your life back on track, you’ll need to have plenty of savings prepared to cover the costs.
- Losing your job
Losing your job isn’t exactly an “expense” per se, but it’s certainly something that could happen to virtually anyone. Even if you think you have excellent job security, something could occur in the future that makes you redundant or drastically reduces your income. There’s no excuse not to prepare for a situation like this. Luckily, you can establish multiple sources of income to ensure that you always have some money coming in. In addition, having plenty of savings in your bank will ensure that you have money to live on while you search for a new source of income.
- The passing of a loved one
While not a topic that people enjoy talking about, a lot of us need to prepare for the passing of a loved one because it can get surprisingly expensive. Whether it’s embalming, purchasing a casket or even the costs of funeral cremation urns for ashes, there are lots of different expenses involved and it’s important to start thinking about how you’re going to pay for it. Even the costs of a funeral can be daunting to think about, and the last thing you want is to delay this heart-wrenching process any longer.
- Some kind of medical emergency
Medical emergencies can cost a lot, especially if they’re not covered by your health insurance. It doesn’t even need to be an emergency to be costly. For instance, if you discover that you have hearing loss, then getting a pair of hearing aids can be quite costly. Even with medical insurance, you can expect to pay a fair amount of money to cope with certain costs and expenses that aren’t immediately obvious as soon as you enter the hospital. So if you don’t want to delay treatment options and want to ensure your well-being, it’s best to prepare for these medical emergencies ahead of time.
- Home and appliance repairs
Most of us will go through some kind of home repair emergency at some point in our lives. Whether it’s our boiler breaking down and needing an immediate repair or a natural disaster wrecking our home, there are plenty of surprise situations that we could end up in. Home and appliance repairs can cost a lot of money, especially if it’s managed to cause a lot of damage. This is why it’s vital that you hold on to your savings and always have some money prepared to cover these costs.
It’s vital that you start planning ahead of time for your future expenses. However, as you can’t reliably predict what will happen in the future, this can be quite challenging for most of us. As long as you’re being frugal with your money and saving as much as possible, you’ll find that it’s fairly easy to cope with any surprise expenses in the future.