Why Does One Unexpected Expense Set Someone Back So Much?

[Promocodeudo]

Life financial troubles hits, these are unplanned situations, it sometimes comes when we don't have much of the emergency funds to battle them, they might put us into some debt and thereby setting us back to the level we never expected that we can fall back to, this shits happens, and our prayer should always be,  as we hustle every day, any emergencies situation that will take all we have save including our emergency funds should never come our way, cause if it does, everything will seem to us like the world is against us, some days ago i was thinking about something, I was just like can I be too careful, to be able to avert somethings from happening and the answer I gave to myself is no, so let's hope and pray that life doesn't happen to us.

[bitLeap]

Have you ever tried to save money for several months just to get something very important to acquire or accomplish but only for one unexpected expense to take out most of what you have saved, if not all? You have tried hard to limit unnecessary spending, you pay every necessary bill and try to save small whenever you can the suddenly something bad happens, your car breaks down and needs repair, medical bill comes up or something if emergency just happens. Before you know it, you are back to square one, where you started.

In the past, I used to buy anything blindly without thinking about long term financial. But now I've learned to manage finances by separating emergency funds and funds allocated to buy something desired for example a car.  Of course, planning has been done in advance and making sure not to sacrifice emergency funds. I think the most important thing is that when making the decision to spend money we must consider the long-term consequences.

[Darker45]

In this case, it sounds like your government has failed you or perhaps money has failed us, which is pretty much the same.

From where I am, most are poor, not necessarily dirt poor but below the middle class. With or without sickness, life is hard. Above them are the middle class. They live a fairly decent life. Unfortunately, they're just a hospitable bill away from bankruptcy or falling into poverty.

It's not because they're wasteful. It's not because they're living beyond their means. Neither is it because they don't save. Nor is it because they fail to strive for more. It's simply because healthcare is a luxury only the rich can afford. In other words, because the government is rotten.

[demonica]

It happens to a lot while some lucky people don't have to worry about this things. It's because not everyone earns the same amount of money. For ordinary people, earning paycheck to paycheck is only enough to survive for their daily expenses. Some may have a bit of extra to save up, but the saving isn't usually enough. Sudden expense or emergency may end up hurting them financially or exhausting most of their savings. And I always say that it's because not everyone has the same opportunities in life and financial capacities growing up. That's life. There are different social class. And those who are in the lower to middle usually experience this thing. The only solution for this is to earn more. But the question would be, how? And where to find that opportunity? So it all depends on the path you'd take.

[uchegod-21]

Unexpected expenses will always be there, so you cannot have regular savings without also saving for emergency situations and other unexpected expenses. Everyone needs to plan for situations like this.

Having been aware that unexpected expenses can drain one really quickly, that is the most reason why people should have emergency funds as part of their savings. In addition,  they should also have an insurance cover that will protect them from major financial risks.

If one's income cannot help him save some money, have an emergency fund and insurance, he should work towards increasing his  income.

[Mayor of ogba]

I used to spend money recklessly and I don't save up for emergency in the past because as a boy back then I didn't have any responsibility of taking care of anyone other than myself I used to make little savings in case I want to buy anything for myself, anytime I have an emergency I don't always have what to fall back to, to solve the emergency other than depending on my little savings to solve the emergency, and this habit sometimes makes me to fall back to square one, but now that I have grown to a man and I have a family to take care of, I now spend only on necessary things, save more for emergency so that my emergency money will be enough to take care of my emergencies without me struggling or depending on the money I have saving you for months to buy something that will make my wife and kid life easier.

[Rruchi man]

For those who have managed to build financial stability, what helped you most? Was it increasing your income or you just find another way to protect yourself from unexpected cost?

Increasing your income certainly gives you more disposable cash to use even for unexpected emergencies, but if your challenge is increasing your income at the moment, you do not need to wait until your income is increased before you start planning for emergency situations. You have to find a way to take out a percent of the income you already have and allocate it for emergencies. Just as you have allocation for investments and also savings. I know it's a lot on your little struggling income because at the end of the day if you take out all those, you'll be wondering how much is left for you to sort out all the needs and bills that need to be paid. But the advantage of having a percentage of your income allocated to emergency spending is that it reduces the pressure that you will come under when one such emergency comes up so you do not have to liquidate the investments you've made prematurely just so that you can sort it out.

[coin-investor]

Have you ever tried to save money for several months just to get something very important to acquire or accomplish but only for one unexpected expense to take out most of what you have saved.

Unexpected expenses are things that just happen; we have no control over them, like when you get into an accident and have no choice but to use your savings.

For those who have managed to build financial stability, what helped you most? Was it increasing your income or you just find another way to protect yourself from unexpected cost?

You should do both; there is no one way to build financial stability. You should employ every method and means; that's what successful people do. You have to expect that as you save money, there will be unnecessary expenses along the way, and you have to address that.

[Dreadboost]

For those who have managed to build financial stability, what helped you most? Was it increasing your income or you just find another way to protect yourself from unexpected cost?

It's better to be back to square one than to find ourselves in debt. Imagine if there were no emergency funds to take care of the situation at the given time, the solution at that moment is to take a loan with a high interest fee since it's urgent.

As Tungbulu said, emergency funds are the logical thing to do when we begin to make little money. That little amount kept in emergency funds will help us cover an unexpected financial problem in the future.

[Lontor]

No matter what life throws to your face, you are going to be fine with it, this is the truly meaning of awakening, there is no escaping from life surprises, it can be good or for the bad but who cares? It's what the living have to go through.

You are punishing yourself the moment you don't expect them to happen to you, why are you alive then? You can't escape unexpected expenses and others unless you are dead.

Expecting emergencies is why many people have emergency funds saved up in a separate bank account, some people think they can escape this if they pray harder, I know people like that but today they learned a big lesson already.

[Merit.s]

The best thing is to keep looking for means to increase your income so that, you can have enough discretionary income on ground to save. Another mistake that some people do is that, if their income increases, they'll also increase their expenses and budget which will put them back to having little discretionary income and meeting up with basic needs and monthly expenses.

It's better that you have money to take care of whatever, emergency that hits you than you don't have because you can solve your problem yourself without needing anyone's help.

[Solodoski]

We all understand that emergencies a bound to happen and I dint think any one expects it or can even predict when these emergencies happen, so that why it's very important to have money saved up for emergencies,  even if you don't have an emergency for years, you just have to keep saving up for it, because we don't know when it will occur. We also understand that sometimes what you need for your emergency is more than what you have saved up for it, at that point you don't have a choice than to borrow from other savings like investment saving, but I think it will reduce the amount you need from other savings.

[o48o]

Have you ever tried to save money for several months just to get something very important to acquire or accomplish but only for one unexpected expense to take out most of what you have saved, if not all? You have tried hard to limit unnecessary spending, you pay every necessary bill and try to save small whenever you can the suddenly something bad happens, your car breaks down and needs repair, medical bill comes up or something if emergency just happens. Before you know it, you are back to square one, where you started.

The frustrating part is that you may not have even done anything wrong because sometimes life just happens and while someone else might be able to handle the same expense without even stressing, it or may have to go and borrow money or put other plans on hold just to get through it. This is one reason for me to think that financial stability seems to be harder to achieve than it actually looks. It can’t just be about knowing how to manage your money, the problem sometimes is that there’s is not just enough money left after you have taken care of your daily need.

For those who have managed to build financial stability, what helped you most? Was it increasing your income or you just find another way to protect yourself from unexpected cost?

They can be really annoying even when you plan for them, because you never know how much that sets you back.

When i do budgeting, it includes buffer money and emergency fund, because emergencies you can pretty much count to happen.

And i guess you can already see that by planning for them, i don't see them as "unexpected" expenses, but just expenses that haven't been realized themselves yet.

But even if i am prepared, additional expenses can eat your emergency fund fast, and i am back to zero raising it again. So it's not making it feel like nothing, it just keeps me floating and alive.

[Felicity_Tide]

This is one reason for me to think that financial stability seems to be harder to achieve than it actually looks. It can’t just be about knowing how to manage your money, the problem sometimes is that there’s is not just enough money left after you have taken care of your daily need.

I don't think I've ever seen anyone explain how simple it is to achieve financial stability. It's never as simple as it sounds, and I believe everyone knows that. Finding ways to make more money has always been the only way to feel safer financially. I'm not going to overlook the importance of having the discipline to save up, but making more money often makes saving a lot easier and more convenient. I believe a lot of people actually struggle more with increasing their earnings rather than how to save up.

But again, at the end of the day, everyone can not achieve financial stability. A decent number of people in our society are literally living below average... Some actually living hand to mouth, I.e they're only living on what they earn, which makes survival their only priority.

[General_Bitcoin]

This is one reason for me to think that financial stability seems to be harder to achieve than it actually looks. It can’t just be about knowing how to manage your money, the problem sometimes is that there’s is not just enough money left after you have taken care of your daily need.

I don't think I've ever seen anyone explain how simple it is to achieve financial stability. It's never as simple as it sounds, and I believe everyone knows that. Finding ways to make more money has always been the only way to feel safer financially. I'm not going to overlook the importance of having the discipline to save up, but making more money often makes saving a lot easier and more convenient. I believe a lot of people actually struggle more with increasing their earnings rather than how to save up.

But again, at the end of the day, everyone can not achieve financial stability. A decent number of people in our society are literally living below average... Some actually living hand to mouth, I.e they're only living on what they earn, which makes survival their only priority.

There is such a big difference between someone who is irresponsible with money and someone who doesn’t make enough to be able to comfortably take care of their needs.
Sometimes pinching pennies and living on next to nothing after paying for things like food, rent and other bills isn’t enough. Sometimes you just need more money coming in to be able to cover all of your needs as well as have a cushion for all of the “unexpected things” that pop up.
Budgeting is definitely important but financial stability also has a lot to do with having a high enough income. Telling people that are struggling financially to try to save more is sort of like telling someone that’s hungry to eat less.  

[Hewlet]

For those who have managed to build financial stability, what helped you most? Was it increasing your income or you just find another way to protect yourself from unexpected cost?

You need to set a law on yourself and be responsible enough to know that not everything should be allowed to take your attention at a time you’re attempting to meet a set out goal. Human wants they say are insatiable but it’s only in your place to decide on what you’re willing to pay attention to and what you’re not ready to pay attention to.

If you’re saving up for something really important, you’ve got to choose between being intentional about the goal you’re trying to meet and solving every other minor problem that comes in the way. In the end, you have to forgo something for the sake of other things and it’s left for you to decide what you’re willing to forego.

[Fortify]

Have you ever tried to save money for several months just to get something very important to acquire or accomplish but only for one unexpected expense to take out most of what you have saved, if not all? You have tried hard to limit unnecessary spending, you pay every necessary bill and try to save small whenever you can the suddenly something bad happens, your car breaks down and needs repair, medical bill comes up or something if emergency just happens. Before you know it, you are back to square one, where you started.

The frustrating part is that you may not have even done anything wrong because sometimes life just happens and while someone else might be able to handle the same expense without even stressing, it or may have to go and borrow money or put other plans on hold just to get through it. This is one reason for me to think that financial stability seems to be harder to achieve than it actually looks. It can’t just be about knowing how to manage your money, the problem sometimes is that there’s is not just enough money left after you have taken care of your daily need.

For those who have managed to build financial stability, what helped you most? Was it increasing your income or you just find another way to protect yourself from unexpected cost?

It's actually quite self explanatory, if you have to save for months in order to treat yourself then chances are you're living close to "break even". If anything goes wrong you're immediately in negative territory. The way we're taught to avoid this is to have separate savings pots, one is meant to be for these kind of critical emergencies (you've got to hope too many don't happen at one time which will still deplete it) and another for luxuries that you might want. However this requires a lot more patience and leaving one pot of cash completely untouched which some people struggle to do. It can really depend on your income and the safety nets set up in your country, for example a medical issue in America can sometimes bankrupt you even if you've got lots of cash but it's less likely elsewhere.

[boyptc]

That's life and it happens, when we're preparing to save for something and then something happens. We tend to choose which one is more important for that occasion.

It doesn't need to be in that point of being financially free for us to explain things. Putting our priorities first and forgetting or delaying the planned purchase for ourselves which is also going to make us happy.

Increasing the income is part of the plan and if we want to achieve financial freedom, it's a big part of that success and on how we'll manage our finances.

[Coyster]

For those who have managed to build financial stability, what helped you most? Was it increasing your income or you just find another way to protect yourself from unexpected cost?

You cannot control situations that haven't happened yet. There is no way to protect yourself from unforseen expenses, that's actually part of the reasons to save, in order to sort whatever comes up, without being a burden on others. Financial stability is basically about your income and discipline. The higher the income and the more disciplined you are, the higher your chances of financial stability. Truth is, as long as you are earning below or just equal to what you spend, there's no way you can be stable financially.

[Loyang]

No matter how much money we earn, we will always have unexpected expenses and we will always face such situations. Many people think that earning a lot of money will make us financially stable, but this is not the case at all. Because when a person's income increases, his expenses increase a lot, so he starts living his life as before.

Therefore, a person should manage his financial situation properly. When a person can manage his financial situation properly, no matter how much unexpected expenses arise, they will not be able to affect us that much. Therefore, it is important to manage his finances properly.