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on 31 Aug, 22:51

Contending With Unexpected Expenses

Contending With Unexpected Expenses
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What would you do if your washing machine breaks? Also, you have to visit a veterinarian because your pet needs help. Moreover, that happens on the same day?

 

We got used to planning our time and budget. Sure enough, you know that unexpected expenses always occur when we are not ready, but only a few of us include them in the budget and save money on a weekly or monthly basis.

 

According to the Report on the Economic Well-Being of U.S. Households in 2018 – May 2019, 4 in 10 Americans would have difficulties dealing with a hypothetical $400 unexpected expense.  

 

In fact, the unforeseen expense may occur at regular or predictable time intervals when nobody expects it to happen. Of course, you can use quick and easy payday loans but it is important to have money for such emergencies and remain financially unscathed.

 

The Income Matters  

 

As the survey reports, families with higher income prefer relying on savings for unexpected situations. Nearly 54% of respondents replied that they would pay the cash. About 23% of Americans with annual income less than $30,000 said they would take advantage of savings. 9% of respondents (with the same annual earnest level) answered they do not know how to pay for unbudgeted expenses.

 

 

Asking Millennials  

 

Also, the answers of millennials have changed: in 2014, 31% of young people said they would rather reduce the spending. In 2019, more than 34% answered that they would make and use savings. 12% of young Americans replied that they would use a credit card and 31% said they would need to lower spending.

 

Boost Savings By Reducing Spending  

 

Some people do not know that restaurant meals, alcohol, expenses on cell phone and cable TV can be budget-busting factors. It is necessary to refuse from the highest-cost items and think which expenses are negotiable and which are mandatory. By the way, 58% are likely to reduce their spending on restaurant meals and 35% – on alcohol.

The funny thing is that many young respondents say they do not plan to budge on cell phones. Your smartphone may be vital to you, but do not take whatever the phone company offers you by default; one should have the right plan for the usage and his needs.

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