No matter how careful and responsible you are with your finances, unfortunately, there is sometimes no escape from unexpected expenses. At some point in their lives, most people will face that dreaded moment when their car just gives out in the middle of running errands, or when they are about to take a shower before work and find that there’s no hot water. In these instances, the prospect of having to club together money to cover these unexpected expenses can be emotionally and financially stressful, which is why it is important to think of a few different plans of action in case you are faced with a similar situation.
Create an emergency fund
Having an emergency fund is the best preventative measure you can take in case of unexpected expenses cropping up. This is a dedicated amount of money which you put away only to be used for emergencies, such as if you don’t have enough money to pay your rent, or if you need to get your car fixed when it breaks down. You could either save this money in a dedicated savings account or keep it as a liquid asset within the home. The more money that you can save in this capacity, the better because this will help you to avoid amounting huge debts that you don’t have the financial means to deal with.
Borrow the money
While having to borrow money to cover last minute costs is not ideal, the interesting consumer index by city from CashLady shows that the most common reason for people to get a loan in Manchester is because of unexpected expenses, so you’re not alone! Unfortunately, sometimes there is no other way around needing money on short-term notice, and so the best thing you can do in a tough situation like this is to just deal with things as they come. Getting a peer-to-peer loan from someone you know may be the cheapest way to borrow the money you need, but if this isn’t possible, then go for a company that offers a range of financial plans to find the one that will work best for you.
Find ways to make money on the side
If you don’t already have the savings, and borrowing money isn’t a viable option for you, then another choice would be to look into ways to make some quick money. For example, you could look around the local area to see if anyone is advertising for cash in hand jobs, like painting and decorating and cleaning. Alternatively, you could set up your own freelance business on the side of your usual working routine, as there are a lot of different options for what types of work you can do on a freelance basis. For example, if you are good at English or another academic topic, then you could set up tutoring for students and run it from out of your home. Alternatively, you could do something such as babysitting or pet sitting on your days off or in the evenings.