Storm clouds across the lake.
The winter storm is coming. According to the forecast, the snow is supposed to start within a few hours. Looking at the sky and feeling the heavy dampness in the air, I don’t think it is a bunch of hype. Schools are closing early. The kids have had a lot of snow days, which is why I think they had them go in, even if for only half a day. Work also told me to stay home. Although we could use the money, I was relieved. I had planned on stopping at the store, but I’ll be okay with what I have on hand. Saved me some money right there!
While I know how to get prepared for weather storms, I don’t always feel as well prepared for the financial storms of life. Since starting this journey, we’ve experienced a few, all of which required thousands of dollars — Hub’s surgery and a month off from work, our driveway, and our furnace of last week. One would think after all this, we’d now be pros at handling what comes our way. While we’ve “handled it” two out of these three hurdles, came with added debt. The sad thing is that statistics show we are not alone.
Just yesterday, Hubs heard something on the radio that said 50% of Americans couldn’t come up with $500 cash to cover an emergency. While I couldn’t find the station or program to credit, what I did find by googling “How many Americans can’t come up with $500” was astounding. Seriously, if you’ve never searched for that, do so. At the very least, it will be eye-opening.
While obviously, the results show there are a whole lot of us mishandling our finances, what about those of us who are actively trying to do something about it? What does one do when an emergency is far more than the small amount of money you (hopefully) have set aside? A few days ago, I received an email from a reader asking the very same question.
Excellent question! Since I don’t have a good answer, I feel it is a good one to ask of the readers of A Dime at a Time.
How have you handled unplanned urgent expenses while digging out of debt? What tips can you share? Inquiring minds want to know!
I think part of it is making different choices than I would have a year ago. For example, the drunk idiot to smashed into 2 of our cars parked in front of our house – in the past we would have gone out and gotten a loan for a new car. Since we just paid off my car ONE MONTH ago, we have decided to take the money we get for hubby’s car (totaled) and save it toward a down payment and just live with one car for now. It is inconvenient – YES, does it piss me off that none of this was our fault but we are paying the price anyways – YES, but it is what it is and it is the choices we make that will change our future.
Making smart choices! I think that is a big part of handling the storms that come our way. Good for you for not taking on more debt!
First I think you need to make sure it really is an emergency. People have forgotten the difference between a want and a need. Having no heat is an emergency, wanting a new suit is not. Surgery is, newer car is not. If it is a true emergency then you have to slash the budget to the bones. There is always something to cut. I spend $400 a month on groceries but if I had to, we could live off of what is in our house with maybe $50 for milk and fresh fruits and veggies. No one would starve. If Hubby’s car went, he could ride his bike in decent weather or I could drive him. 2 cars are a want most of the time not a need. Worse comes to worse, sell stuff. We all have so much stuff that we don’t really need. Everyone is different and will have different areas to cut. As long as you make the cuts, it doesn’t matter where they come from.
Excellent advice! I completely agree that there is a difference between wants and needs. Hubs and I were just talking about this earlier today. Having lost power twice this week (not an uncommon occurrence where we live) we would love to have a generator. Until we get this debt paid off, it won’t happen! Inconvenient? Yes. But, I’d rather live without power from time to time rather than go deeper into debt.