A Fund for All Your Emergencies

Life is full of unexpected twists and turns, but at what cost? Murphy’s Law states, “Anything that can go wrong, will go wrong.” But are you prepared to pay the bill when something goes wrong? Emergency funds are crucial when it comes to planning any successful budget. The first step in establishing your emergency fund is first identifying how much you should be saving for anything in your life that could break, disappear, or need repair (including yourself).

CAR

If you are driving, or planning on driving soon, you need to include car expenses into your emergency fund. On average, an emergency car repair costs $500.00 to $600.00. This could include anything from a flat tire and dead battery to a minor fender bender. Sometimes car accidents can cost more, depending on your own insurance coverage and the severity of the accident. Your bills are already covered in your monthly budget, but it is always good to include that extra money for wiggle room when needed.

HOUSE

Owning a home is very different from renting an apartment. You are now your own landlord, which means if there is a leak or pipes explode, you are the one to fix it. And your home has many components that could suffer from an accident:

• Fridge: $90 - $650
• Washer/Dryer: $100 - $650
• Oven: $100 - $400
• Plumbing: $300 - $400
• Structural/Roof: $300 - $1,800

Similar to car insurance, there is homeowners’ insurance that is helpful when it comes to major home emergencies. But smaller things around the house that you need to pay for up front should be included in your budget. And when it comes to fixing your appliances or replacing them completely, always ask a professional for a quote and don’t forget to compare prices before you settle with a service or product.

PETS

Having a pet in your family can be fun but they can also be expensive and a huge responsible. There are low maintenance pets with low maintenance costs such as hermit crabs, fish, etc. but for the sake of our budget planning we are going to focus more on dogs and cats. These pets need yearly checkups with vaccinations, potential monthly grooming, and monthly medications for general upkeep. If your pet becomes ill, an emergency vet visit could cost anywhere from $800 - $1,500, depending on your local emergency vet hospital’s costs. There are different kind of pet insurances available, but those insurances usually ask you to pay the cost up front and then they will process reimbursements. It is always good to be ready if you need to pay first before getting reimbursed later.

WORST CASE SCENARIOS 

The world has been an insane place to live in where you truly never know what lies around the corner. Did your flight get canceled and now you have to buy a new flight home for the holidays? Did you fall off a ladder while cleaning the gutters? Did you get laid off from your job last week? These are all scenarios to think of and be prepared for with a SmartyPig Emergency Fund Goal. Some prices for these scenarios include:

• Medical bills: $1,200 - $1,300
• Job loss: A month worth of expenses (around $3,000)
• Travel: $200 - $500 per flight

It is easy to get wrapped up in how crazy and unpredictable life can be, but just starting small will make a world of a difference in a time of need. You could set up your auto deposits on a monthly or weekly basis, starting small so your savings can be manageable. Then when the time comes, you’ll have a nice stash of cash to help with those unexpected expenses. It is never too late to start saving, open your emergency goal today!