Major expenses are difficult to predict but they are bound to happen. Maybe you discover your roof suddenly leaks, your car breaks down, or there is a plumbing problem and a mini puddle inside your house.
It helps if you have an emergency fund and insurance to help you cover these unforeseen expenses. Following are some nasty expenses that life may throw at you and how to cope with them effectively.
- Funeral expenses
In this time of pandemic, sudden deaths seem to be a part of normal life. You can limit funeral costs if you shop for the lowest prices and beware predatory business practices. Ask for an itemized statement of the total costs of the funeral you have selected, including any legal requirements. Skip the optional products and services that add to your costs.
- Medical bills
A trip to the emergency room can easily deplete your bank account. The best way to avoid this is to take care of your health. Eat well, exercise, and have adequate halth insurance. Be picky when it comes to your health insurance, too. Research and do comparison shopping, and take time to negotiate with health care providers.
- Major home repairs
While it is lovely to be a homeowner, it also comes with plenty of unexpected expenses that cost thousands to repair. It can be a damaged roof, flooded kitchen, and so on. These instances highlight the importance of an emergency fund or a homeowners insurance policy. Note that homeowners policies do not cover normal wear and tear or damage to electrical systems, plumbing and household appliances. You will need a home warranty to have these covered.
- Vehicle breakdowns
This has got to be one of the most frustrating problems out there. Save yourself the troubl by buying mechanical breakdown insurance or extended repair warranties. Mechanical breakdown insurance is a supplemental insurance that covers repairs unrelated to accidents. Meanwhile, extended auto warranty covers repairs after factory warranties have expired. Both can be useful in times of unexpected car breakdowns. It will save you a lot of headache for sure.