2 Types of Financial Emergencies and How to Handle Them

Emergencies, by definition, aren’t expected and none of us are immune to them. You really can’t afford to disregard the chance that a sudden financial emergency will eventually happen to you. It doesn’t matter how well-prepared you might be, things can happen that you just won’t see coming. It might be a freak accident or a sudden illness, it’s always best to expect the unexpected. Each one of us has a financial situation that’s both complicated and unique, but we all have two basic elements that remain the same – expenses and income.

First Type of Emergency – Income

Unless you’re born with the proverbial silver spoon, or marry into money, you’ll need to work for a living. If you happen to lose your job, you can find yourself looking for a loan. If you are looking for loan places Raymondville, TX (or wherever you live) would be a good place to start. It doesn’t matter if you lose your job because your company goes under or if you simply get fired, it’s always best to be realistic when it comes to the chances of one of these things happening so that you can be prepared for becoming suddenly unemployed. Always make sure your resume is up to date, and keep a list of resources you can tap into if the unthinkable happens.

Second Type of Emergency – Expenses

Most of the time, we have more control over what we spend than we do over what we make. Because of this, most expense related emergencies can be avoided simply by not purchasing what we don’t need, and by having an emergency fund. Think about what your true necessities happen to be, along with what you’re able to live without, and do this on a daily or weekly basis. Yes, there will be expenses that are unexpected, but these will tend to be related to things like housing, transportation, and medical care – not what you purchase.

Basic Preparedness

There really isn’t a better thing for anyone to have than an emergency fund. When it comes to solving problems, money can work wonders, and if you happen to be living from one paycheck to the next, you’ll be greatly handicapped when it comes to having the ability to deal with financial emergencies. If you don’t have the funds on hand that can pay your bills if you happen to be out of work for a few months, this should be a priority. With a bit of foresight and a small cushion, many different financial emergencies can be handled. However, if you don’t have that cushion, even tiny issues can become major ones. What will happen if your water heater dies or you have a tire blow out on the interstate? If you have even just a couple of hundred dollars in your emergency fund, these things won’t be massive blows. If you don’t, they can be.

In short, the best thing you can do in the event of financial emergencies that can’t be prevented is to be prepared.