Finances & Money

5 Unexpected Things Out of Your Control You Should Be Financially Prepared For

apple-1216853_640Things in life that we have control over are easy to plan for. For example, you can decide whether to buy a budget-friendly car, or a gas guzzler. You can make decisions on your mortgage, and your monthly budgeting and how much you spend. These decisions provide you with control over your finances. But what about those life events that are entirely out of your control, yet wind up affecting your wallet? Being forewarned is a huge part of being forearmed. Here are 5 things out of your control that you can still be prepared for…

  1. Car accidents

No one thinks it will happen to them. But state statistics tell a different tale. For example, the Texas Department of Transportation says in Texas alone there were 13,616 serious injury crashes in 2015. And those sustaining a serious car accident injury in the Dallas area numbered 17,011 people. If those numbers are not enough to get you to budget for a car accident, consider the following. An article in Forbes listed every 17.9 years as the average amount of time you will have a car accident. Of course, while no one wants to plan for a car accident, the key here is to be prepared in case one happens.

  1. Getting laid off

Your work life seemed to be doing fine, but then without warning, you were fired. Perhaps you were just bad at reading the signs, or some unexpected trouble befell your place of employment causing it to go under. While some aspects of getting laid off are under your control, such as becoming invaluable to your workplace, etc. Other aspects are not. Stock market conditions, a law suit, downsizing, etc. This is where an emergency fund can be your life raft as you look for your next job.

  1. Sickness and injury

There are ways we can do our part to take care of ourselves and thus prevent sickness from taking a bite out of our finances. But there are some occasions where sickness is really out of one’s control. For instance, being involved in a car accident. Or needing to take care of a sick loved one. Medical bills can quickly add up if you do not have sufficient health insurance coverage. Even if you do, the time spent not working is sure to take a toll on your finances. Take a hard look at your health insurance and discuss with your insurance representative how much coverage you can expect to receive. If you feel uncertain about whether that will cover your needs, err on the side of caution.

  1. House repair

Natural disasters really should head up this list of things that are out of our control. If you are a property owner, tornadoes, floods, and brutal storms can damage one’s real estate investment. You can prepare by having an idea of how much house repair costs. And consider purchasing house insurance to help offset those costs if and when needed.

  1. Death

Perhaps this might seem callous to mention, but the death of a parent or a sibling may put a strain on your budget. Particularly if funeral expenses were not planned for by the deceased and the burden falls on you to take care of. While such conversations may be tricky to have, discuss with your family members their funeral plans. Prepare now while everyone is in good health and has full control of their mental capacities. Doing so will make this conversation easier than if you were to wait. You will need to deal with this eventually. Make sure it is on your own terms.

Preparing for life events that are out of your control is an effective way for you to deal with the unexpected. Knowing how much each set of variables could cost will help worries be less vague and more actionable.

Here are a few posts to help you with your challenges:

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