Eventualities You Should Always Have Savings For

It’s a fact of like that sometimes things go wrong. Trying to prevent bad things happening is all well and good. But you should always be prepared if something does happen. You’ll need lots of things, from supportive family to back-up plans. But importantly, you will most likely need money. When things go wrong, they need fixing, and this is unlikely to be free. With this in mind, you should always maintain savings for the following eventualities:

Medical Emergencies

Even if you have medical insurance, it is still sensible to have a sufficient pile of savings for medical emergencies. For example, you might have dental insurance that covers annual check-ups. However, more serious problems are sometimes only partially covered. If you need an emergency root canal, the last thing you need to be worrying about is how you are going to pay for it. Furthermore, if you don’t have things like eye tests covered, save over the year for your annual check-up. This will be easier on the wallet than having to fork out all at once. This is especially relevant if you have multiple family members to pay for.

A Lawyer

Lawyers are necessary for a number of different things, from the minor to the major. Whether you’re finding a divorce lawyer or someone to help with your will, you’re going to need to be able to pay for it. You’ll also need a lawyer if you find yourself in any sort of trouble with the law. The more you have saved, the better your lawyer is likely to be.

Emergency Travel

You should always have savings for last-minute travel. If your best friend suddenly needs you but lives several hours away, you can dip into this pot to cover petrol or train fare. Similarly, this is especially relevant for parents with children away from home. If your children are travelling and fall sick, you’ll want to go and help them or be with them. However, if the airfare is expensive and you don’t have the money to hand, you won’t be able too.

Theft and break-ins

While most items should be covered by insurance if you suffer a home or car theft, savings are useful. This is because it can sometimes take a while for claims to be processed. While this is happening, you might need to start replacing items with your own money.

Work necessities

If there are items you cannot do your job without, you need to be able to replace them immediately. After all, if you can’t work, you can’t earn. This will lead to even bigger problems down the line. If you run your own business, for example, you’re always going to need a computer. Should you drop, break or lose your laptop, you need a pile of savings to replace it.

Your retirement

It’s inevitable that we’re all going to grow old. While you will probably have a pension through work, it doesn’t hurt to have your own savings too. These tips will help you prepare for your retirement effectively.

Image courtesy of Lifehacker.