How to pan and deal with unexpected money drains

June 29, 2014 | Filed under: Personal Finance | Author: Editor

A man once told me that nothing should be unexpected because we can always expect that something unexpected will happen.  Right now, I’m too upset to figure out whether I agree with this or not because the unexpected occurred to me – I received a bill from my doctor for N100,000!

“Your health insurance will cover this,” is what I hoped for.  “Your insurance didn’t cover Hepatitis A Vaccine. Please pay the balance due,” is what I have to deal with. There’s so much to complain about this bill but instead of the long rant post, here’s how I managed to not let this expensive wreak my budget and my mood(it is close to the holiday season after all).

 The emergency fund

The only reason why we keep coming back to this is because it is truly a life saver.  I know many of you don’t have one, so start contributing to one right away.  If you haven’t set one up yet and feel that you don’t have the means to do so, try starting small because even N5,000 a month can add up over time.

 Stop stretching the budget

In other words, do not live paycheque to paycheque anymore.  We are extremely good at expanding our spending habits, so many of us gobble up as much of the paycheque as we can.  Consider keeping your spending the same when you get a raise, or try the many ways to cut spending.

 Dispute it

If it’s an overdraft fee, try calling your bank to see if there’s a way to get it waived.  As for my bill, my doctor did offer to let me pay, with four instalments of N25,000 instead of N100,000 if that helped.  Try to be calm and find a solution instead of being frustrated because the person on the other side of the phone can really help.

Unexpected or not, expenses need to be paid sooner or later.  While it’s easy to feel upset about these charges, some preventive maintenance can keep it from ruining our mood (or in my case, a great start to the holiday season).