It is often said that working class people are one paycheck away from being homeless. Since that is true of most people, having any type of unexpected financial situation can cause massive problems. Even the best of people don’t have enough in their savings to cover some issues. Here are four common problems that often bleed the bank accounts dry and put a crunch on the finances.
A Job Loss
If you’re about one paycheck from being on the street, the loss of a job can hit really hard. Even a savings with $10,000 or more can only provide so much comfort when there’s no money coming into the home. If the job loss was a surprise, the effects can be worse. However, when there is some notice or preparation allowed, the blow can be eased by putting back more money than usual.
The Need for Legal Representation
Life’s highways are crazy busy. You can be in an accident at any time or place. What if you hit a pedestrian or total someone else’s car? Professionals, like those at http://www.grothlawfirm.com/milwaukee/pedestrian-accident-lawyer, know that these kind of situation can be as serious as the injuries incurred. If you hit someone with your car and they have medical bills, you are liable. You may find yourself right in the middle of a lawsuit that you weren’t expecting. Legal representation is essential in situations like these. It’s another expense that can drain you dry if you’re at the wrong place at the wrong time.
Car Repairs
You’re driving down the highway and the car starts making a loud noise. Taking to your car and waiting for the repair man to tell you what is wrong is like waiting for medical tests. There just doesn’t seem to be any easy way for a mechanic to tell you that your car has a major problem. Most people can handle a mechanical issue that is under $500. However, when the repairs are larger in nature, it can really cut deep. The average cost for a new transmission or engine can be $3,000-$5,000. If something major goes out on the car, you may be doing a repair versus replacement estimate. The need for a new car when you weren’t prepared can be disastrous.
The Need to Move
Relocation costs are astronomical these days. If you have a company come in and pack up your stuff and deliver it to another area, it can be thousands of dollars. Even if you just rent a truck and load it yourself, you can spend on average $300 for the equipment and boxes. There are so many expenses involved in moving that it can really drain the purse. If the move was unplanned, it may be a large financial burden. Sometimes companies relocate employees but they don’t’ get reimbursed for the move until all is said and done. Moving is one of the top 10 things that can cause financial turmoil.
No matter what life throws at you there will always be financial ups and downs. Having a savings plan that can pay for things like legal assistance and car repairs is essential.