A financial disaster is one that we didn’t see coming and didn’t have the preparation for. It can be not only a huge hit to our bank accounts but can send every aspect of our life into a downfall.
Money problems are reported as one of the biggest stresses of modern day life, and one of the biggest contributing factors to depression. By taking the proper precautions to avoid being sideswiped by an unexpected financial blow, you can improve the quality of your life considerably.
Take note of these common financial disasters and tip on how to avoid them altogether by being prepared ahead of time.
Uninsured Injury
You hear many Americans complaining about the rising costs of insurance, and what a pain it can be to be charged a penalty at tax time if not medically insured. This can be a frustrating expense when you don’t have any injuries or medical concerns to worry about.
However, suffering an injury when not insured can be one of the most expensive and financially devastating things that can happen to an American.
A simple trip to the emergency room can be as much as $20,000 which is considerably more when compared to a monthly insurance payment.
The same goes for your animals. Ensure that you have pet insurance for your cats and dogs. A small surgery can be thousands for animals, and sometimes this high cost can sadly force the family to opt for euthanization.
Car Breakdown
When your car breaks down, your life can come to a complete halt. Car repairs are costly and most often come completely unexpected.
By giving your car regular tune-ups, oil changes, and tires aligned, you can anticipate any foreseeable problems. Each time you go to the mechanic, have them give you a diagnostic.
Ensure that you have an honest mechanic, however, as there are some that make up problems just to take your money.
Not Paying Taxes
Skipping out on taxes whether intentional or unintentional can be a costly mistake that takes years to fix. Often the IRS won’t spot an error that occurred until 5-10 years after the fact, then come after you for it with interest attached.
If not paid back, the IRS can seize your assets and even have you incarcerated. Do yourself a favor and use a professional online tax service or an accountant to protect yourself.
Broken Electronics out of Warranty
It always seems that our electronics break the day after their warranty expires. A large electronics repair outside of warranty can be upwards of thousands depending on the item.
Guard yourself again this costly situation by either purchasing an extended warranty or paying a monthly installment towards property insurance.
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