Everyone is experiencing a shaky financial situation at the moment.
With the cost of everyday essentials rising, but wages staying firmly as they are, money has never been tighter.
Most people who were living within their means have have to drastically change their lifestyles. A financial overhaul seems to be required just to stay afloat.
So what happens when an unexpected bill lands on your doorstep?
It’s easy enough to find yourself in a situation where you suddenly need to fork out for something you hadn’t planned to.
Here’s how to cope with those unexpected bills.
Have a Rainy Day Fund
In an ideal world, we’d all have a rainy day fund. This would massively the reduce the stress of unexpected expense and allow you to sort it out on your own.
It’s difficult in this current climate to put money aside and build up a fund, so that might not be a realistic quick fix.
Instead, it’s probably best to do what you need to this time, and work on building up a small fund.
A good way to save when money is tight, is to put any money that would normally be spoken for into a savings account. For example, if you usually drive across town to go to work, but instead book a week of holiday stay home, you can bank that fuel money.
Likewise, if you start cutting down on caffeine and cut out your takeaway coffee, put the money in savings. Even if it only amounts to a tiny amount each week, it’s worth saving.
You could go months or years without needing your emergency fund, which can mean by the time you need to use it, you’ve saved a decent amount.
Take Out Some Credit
If you don’t have a rainy day fun or any family to lend you the money, you’ll need to borrow funds.
Borrowing the money is a quick way to resolve the problem. You can generally borrow money for a short period of time, and paying debts off on time can even help with your credit score.
Rather than emptying your bank account for an unexpected expense, borrowing the money might give you a bit of breathing space.
Borrow it From Friends or Family
Depending on your financial situation (and your relationship with your family) you might be able to borrow what you need. If it’s one of those things you need to quickly sort and you’ll have the money in a week or two, borrowing the money from someone close to you might be an option.
If you have friends or family willing to lend you the money, it means you’ll save on paying interest.
Try Negotiation
Depending on what the unexpected bill is, you might be able to figure something out that works for both of you.
For example, if you suddenly have a bill for something that’s not hugely urgent, you might be able to ring them and arrange a payment plan.
If it’s a repair around the home you need to deal with, you can always ask your contractor what the cheapest fix will be. This can sometimes mean something like patching up a hole in the roof while you save to have the roof replaced.
Discussing the bill is always worth a try, even if nothing comes of it.