Life is full of unexpected expenses. You can budget for all the usual things you need to pay for, but you can’t stop the unexpected from happening. One of the things that can surprise you is the need for repairs at home, whether it’s your washing machine or the roof. Some repairs can wait until you’ve had time to find the money, but others need to be taken care of right away. And although your insurance will hopefully compensate you, they won’t cover the immediate costs. Here’s how you can be prepared in advance or, failing that, find the money you need as quickly as possible.
Hopefully, you have taken out insurance for your home. People will choose to have different levels of cover and policies can differ widely. But with insurance in place, you can rest easy knowing that you won’t be out of pocket for long. However, you may still need to find the money upfront so that you can pay for repairs while you wait for your insurance payout. What’s more, your policy won’t cover everything, so you might be on your own when it comes to something like damage from a natural disaster. That’s why it’s important to have other measures in place.
Building an emergency fund is essential if you want to have the money to make emergency repairs. You might already have savings, but you don’t wish to dip into them to cover an unexpected expense. If you set aside a sum specifically for paying for such situations, you can be safe in the knowledge that you won’t feel the sting of it. You can set aside a couple of thousand to deal with anything that comes up. Don’t forget to top up your fund after you’ve taken money from it.
Secure a Loan
If it’s too late to save an emergency fund, you’ll need to find the money another way. One thing to think about is taking out a loan. But remember, if you struggle to save any money, you might also find it difficult to pay back a loan. One option for borrowing is to use a short-term loan company such as MoneyBoat. Before you apply for a loan, make sure you’ll be able to pay it back. Another option is to ask a friend or family member, but try to do things officially, with a signed contract.
Sell Some Stuff
If you don’t want to risk being unable to pay back a loan, look to bringing in some extra money. Some people may be able to put in some more hours at work or take on a second job. However, if you can’t then looking for something you can sell could be a good idea. Have a look around your house to see if there’s anything you don’t want or need anymore. It could be CDs, books, a DVD player or clothes. You could quickly raise a small sum of cash to cover your expenses.
We can’t predict home repairs, but we can be prepared for them. Think about how you would cover them so they’re easier to deal with when they arise.