Planning For The Unplannable: A Game Plan For Handling Emergency Expenses

At first blush, it seems like an oxymoron to plan for the unplannable. How can someone make arrangements and provisions for an event they can’t predict?

But that’s part of what shrewd personal finance is — staying one step ahead of the game so that you aren’t caught in a true, back-against-the-wall emergency.

This article assumes that you, the reader, do not have a sizeable emergency fund squirrelled away in a savings account. And that you don’t have a deep reservoir of liquidity from which to draw if a sudden, significant expense were to rear its head.

Don’t worry. Below, let’s discuss straightforward strategies that you can enact right now to prepare for future expenses — whether they arrive in two years or two weeks.

IMAGE: UNSPLASH

Determine Which Assets You Can Sell

You might not have liquidity in the form of cash-on-hand, but there’s a chance you have assets you can convert to cash quickly.

Determining a) what these assets are, b) the estimated totality of their value, and c) the best places to sell each asset can help you prepare for emergency expenses.

Ideally, you don’t want to select assets you’ll need — assets you will just have to buy back once you’re in the red again. (This can kickstart a nasty cycle of pawning and rebuying).

Instead, look around your place for accessory items — unused furniture, musical instruments, spare electronics, jewelry, etc. — that you don’t mind parting with emotionally.

Search online databases and marketplaces to determine a dollar value for each. Then, research how best to sell various items (i.e., on consignment, at auction, through an online marketplace, etc.).

Find A Fast, Flexible And Transparent Personal Loan Provider

Thankfully, even if your assets come up short, you can get the financial help you need in a timely manner. You just need to know where to look.

To plan for the unplannable, find a fast, flexible and transparent loan provider that offers sizeable lines of credit. An online loan lender like Fora fits the bill in these situations.

Fora offers a line of credit loan online that allows borrowers to apply quickly, depositing funds into your account on the same business day as approval (check); their credit products are flexible, allowing you to draw as little or as much as you need (check); and they have no hidden fees – just interest on the money you use (check, check).

Acquainting yourself with an agile, emergency line of credit provider can ensure that you’re never more than a few clicks away from help.

Prepare For A Spending Freeze

Lastly, get used to the idea of a spending freeze.

Too often, individuals faced with emergency expenses continue spending their usual disposable income undeterred. Rather than tailoring their expenditures to their current situation, they spend like they always have. (It’s a phenomenon sometimes called “lifestyle creep.”). Unfortunately, it usually makes matters worse.

The best way to prepare in advance for a spending freeze is to locate the expenditures in your life that you can do without. The cliched example is that $6 morning coffee.

But honestly, it can be any non-essential item, subscription, or service that chips away at your ability to tackle essential expenses: streaming services, gym memberships, fancy groceries, restaurant spending, etc.

As a parting note, we should mention that it’s never too late to start an emergency fund. Even if you’ve found this article at a time when a large, imminent expense seems inevitable, you can still make inroads.

And even if the emergency fund fails to make a dent this time, you can at least shore up your defences for future expenses.

IMAGE: UNSPLASH

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