Emergency Situations that require Immediate Cash
A survey conducted by Lawyers.com threw up some surprising results about most American’s emergency stash. Around 30% of respondents said that their emergency cash would not cover their expenses for even a month. When you think of the number of situations that may come up through the course of a month, you begin to appreciate how important it is to identify a money source for surprise situations. They are not as unlikely as you may think.
Maintenance emergencies – Car/ home
With the cold winter months taking their toll on your car and home, and the sun and humidity near the ocean wreaking its own havoc, you will need repairs and maintenance jobs wherever you live and all throughout the year. People often find that they are least prepared for situations – Sarah, a young professional living in New York makes a decent income but living in the city is expensive and when the plumbing in her ageing apartment building broke down, she had a hard time spending on the repairs. Matt found himself in a similar situation when he found mildew had destroyed most of the basement of his North Carolina home. The cost for having the whole basement treated and repairs done can run into 4 figures, and cannot be put off. Most people’s money is tied up in their monthly car or mortgage payments and when the emergency hits, they have to take out cash from their living expenses. While most people keep planning to build up an emergency cash stash, few ever actually get down to saving.
If you own a car, there may be a number of emergency repairs required in case of unexpected breakdowns such as suspension problems or new tires. Further, there may be parking tickets and even towing charges if the cold weather renders the car inoperable.
Medical emergencies
The first thing that springs to mind when you think the word ‘emergency’ is a medical one. This is definitely the case, even for people covered by insurance. You may run into scrapes that are not covered and even a few medical tests can set you back hundreds of dollars. Insurance companies are always looking for ways to pass the buck back to you, so you may find that your or your family’s bills may not be completely paid by the company. Anyway, insurance companies will pay later, and you may be in a situation where you need the cash up front to get help, especially if you find your credit card is maxed out.
Family needs
There are always the usual expenses such as the kids’ school fee, but sometimes there will be an emergency need for cash. Your kid may need new shoes or want to go on a school trip that you can’t deny them. You may need to bail your college going kid out of trouble when they haven’t paid their utility bill and their power is about to be cut off.