If there’s one issue that comes up in personal finance circles a lot, it’s the decisions made to take care of financial emergencies. When there really is an emergency in the house, it can really throw you for a loop. You might have already been having a hard time making ends meet as it is and then out of nowhere there’s a problem that you need to take care of. It just doesn’t seem fair at all!
Yet the question has to be asked — are all financial emergencies created equal? Many times when people talk about financial emergencies, they’re actually talking about something that can be prevented and taken care of. They just don’t want to take care of it when they have the money, so they end up delaying until the problem gets worse and worse.
For example, there are some expenses that you know exactly when they come up. Is Christmas really the same type of emergency as your car suddenly blowing a flat tire? Not at all. However, many people treat Christmas shopping as an emergency expense that needs to be covered at all costs. Instead of putting in emergencies like that, you need to actually plan out all of your spending. It will make it a lot easier to actually take care of your finances in the long run because you will always know what’s coming up.
Calendars are very cheap, and it’s a great way to make sure that you will be able to take care of all of your needs without a problem. It’s just a matter of making sure that you really do have all of your needs taken care of from the beginning.
Separate out those emergencies that really don’t exist — they’re only going to add more stress than you need, and who wants to deal with that, really? You’re a lot better off making sure that you have the chance to take care of emergencies ahead of time.
This is actually where a good emergency fund kicks in. Instead of worrying about high spending, you will need to shift over to a point where youíre worried about saving as much money as possible. We really don’t know when an accident will happen. And we’re not going to tell you that you have to try to predict the future. But having a nest egg for short term as well as long term expenses is really what’s going to make all of the difference when you’re ready to actually settle down. It’s going to really make it a lot easier for you to be able to kick back and enjoy yourself, so why wouldn’t you want to do something like that?
The time is just right to really step back and look at your budget. What are true emergencies and what are expenses that you simply waited too long to take care of? Knowing the difference could truly take your finances to the next levels!