Ever had something break? Or get sick and had a high medical bill? What about unforeseen home repairs? We all have been there: you have your budget, all is well and then...life happens and you need (lots of) money for an unexpected expense.
At one of our recent Financial Wellness workshops, Kick$tart Your Planning (For Those Unexpected Expenses), we discussed strategies to manage those never-fun surprise expenses. Below are some of the key takeaways from our workshop.
5-STEP PLAN TO PAY FOR UNEXPECTED EXPENSES
1. Take a Deep Breath.
Yes, having an unexpected expense will be stressful. However, take a deep breath: you will get through this and will have a plan!
2. Assess the Situation.
Ask questions and gather information: What happened? Can you prevent it in the future? How much will it cost? When do you have to pay?
3. What are Your Options?
Take a look at you:
Savings: Do you have enough for part or all of the expense? What if you deplete your savings and another emergency occurs, what would you do then?
Current Cash Flow: Can you minimize current expenses? Perhaps you can reduce insurance costs, utilities, eating out, etc. for a few weeks to cover the expense?
Future Income: What’s your credit score? If you borrowed a loan or used a credit card, what would be the interest rate and total interest paid? Use our calculators to project costs.
4. Talk to a Professional
You have free access to accredited financial counselors. Contact GreenPath Financial Wellness at 877-337-3399 to discuss your personal situation or learn more here.
5. Compare Your Options, Sleep on it and Then Decide!
You may not always have the time to ‘sleep on it’ but do take some time to compare options and feel confident in your decision.
Our summer workshop series, Kick$tart Your Finances created in partnership with Harvard University Human Resources (Benefits Office) continues with three upcoming sessions: Kick$tart Your Credit, Kick$tart Your Financial Knowledge (Comparing Loans and Credit Card Offers), and Kick$tart Paying Off Debt (Debt Repayment Strategies). Find out more here.