3 Emergencies That Can Destroy Your Finances

By admin, July 22, 2017

An emergency is defined as any serious event that requires immediate attention. Bearing that in mind, what emergencies can occur that end up causing your finances serious harm? Below, you’ll find three big ones that can really hurt your family and your money:

Your House Getting Damaged

Damage to your house is an emergency none of us wants to deal with. The simple fact is there are many ways in which your house can suffer serious damages. What if a bad storm hits and the wind damages your roof or lightning strikes your house. Or, what if someone in your home accidentally starts a fire and your kitchen goes up in flames? When you start to think about it, there are so many things that can happen that lead to your house getting damaged. The worst thing is, in an emergency like this, the repairs to your house will be very costly. There could be serious damages that need fixing and a lot of work that needs to be carried out in your home. In some cases, you may need an entire roof replaced or your house cleared and dried out after water damages. Regardless of how your house gets damaged, the consequences may be very dire for your finances.

A Family Member Getting Arrested

When someone in your family gets arrested, it does count as an emergency. It’s come out of nowhere, it’s a challenging life event, and it requires immediate attention. We’re not talking about someone in your family getting arrested for serious crimes here. We’re talking about if someone is maybe out partying with their friends and they get arrested for drunk and disorderly behaviour. Or, they make a mistake and shoplift. Regardless, someone in your family might make an error of judgement and end up arrested and awaiting bail. This then means you have to go through the effort of contacting a company like Kat Bail Bonds to help you pay the bail and get them out of jail. Depending on the crime, it could cost a lot of money and leave your finances in a very bad position.

A Car Crash

Car crashes are probably the most common emergency out of all three listed here. Also, they’re very damaging to your finances as they can hurt you in multiple ways. With a car crash, you have the financial pain of dealing with a damaged car as well as any medical problems that may occur. You could end up with broken bones or muscle strains that require immediate and expensive medical attention. If you have a good insurance policy, you might be covered for events like this and not have to pay for repairs to your vehicle. Likewise, you could find a lawyer to help you make a personal injury claim and avoid those medical expenses. However, then you end up with a lawyer fee, which can also be costly! No matter where you turn, a car crash can have a detrimental effect on your finances for some time after the event.

If any of these emergencies happen, they need to be dealt with quickly. The problem is, they all require a lot of money to be spent. The best way to handle an emergency is to have an emergency fund set up. This means you’ve got money saved away to help you in case scenarios like these happen.