We are always striving to put money aside for the unexpected. But it can be hard juggling day to day expenses. So far this year we have managed to save nothing at all! This is because we still have our house under renovation and things keep falling apart! So with no savings, when we need to boost the cash flow quickly it can be a daunting undertaking!
Here are three occasions something has gone wrong and needed money quick:
This was just as winter had started to rear its ugly head, we were both working part-time and our boiler completely died. I guess it should have been expected it was over thirty years old! We were looking at £2,500 to get the work completed as the old back boiler needed removing and a new one installed in a different location. We battled on for a couple of months, trying our best to find ways to generate more income. However, with credit cards declining us, we were fortunate that my parents stepped in to lend us the money. Even though they have their own financial burden!
There is nothing worse than getting yourself back on track financially from the boiler situation and then your car decides to give up. For us that happened half way across England when the noise of the wheels grind was causing us to shout at each other just to talk! Checking it in to the garage it needed over £350 worth of repair. Still with no savings we needed to raise the money asap, as we need the car to work! We had to weigh up either going for a short term loan or trying to get a credit card. Luckily I had gone back to full time working so that was in our favour! I have always steered clear of the short term loans, being very aware of the high cost credit index. You can quickly become unstuck if you do not keep up with your regular payments. I was fortunate that I got accepted with a credit card company.
Washing machine failure
Another key aspect of living is having clean clothes! When our washing machine stopped working, we where stumped. It had intermittent faults with socks getting stuck in the drum, but I was able to simply fix that. When looking for a new machine you have to ensure it will do everything you need it to do, and that its drum is big enough! When we needed an extra boost to our cash flow we applied for credit over at Very, they even had an offer of 20% off at the time too! It was a very simple way to spread the cost over a few months, without having to spend anything on interest costs!
There are many ways you can get your hands on a little extra cash if you need it. But you have to ensure you are using the most cost effective. Always shop around for the best deals and think of the long term repayment plan. Will you be able to meet payments in the future if your circumstances change? That is how I have always managed my personal finances.