Pexels. CCO Licensed.

There are many surprise expenses that many of us fail to budget for. Such expenses can lead to a lot of stress and often unwanted debts. Below are five of the most common emergency expenses and what you can do to prepare yourself for them. 

Medical bills

Medical bills are some of the most serious emergency expenses. The average emergency room visit costs about $2,200. Emergency dental costs can also often be expensive.

Home repairs

If you’re a homeowner, home repairs could be an emergency expense to look out for. This could include plumbing repairs, electrical repairs, window repairs, roofing repairs and all kinds of other repairs. The average homeowner spends 1% to 4% of the value of their home in maintenance every year. 

Car repairs

Car repairs are another emergency cost to look out for, especially if you’ve got an older car. On average, Americans spend about $397 per year on car maintenance. 

Vet bills

If you’ve got pets, expect to pay some vet bills throughout your pet’s life. Dogs and cats are some of the most expensive pets - as they get older you can expect a greater risk of health problems.

Electronics repairs

There are many electronic possessions that we are dependent on from gadgets like cell phones and laptops to appliances like washing machines and refrigerators. When these break, repairs can be expensive. 

How to prepare yourself

While it’s often impossible to plan for when these emergency expenses are going to occur, you can still prepare yourself financially. Below are just a few ways to plan for these costs.

Take out insurance

Auto insurance is the only compulsory insurance scheme you need, however there are many other insurance schemes that are worth taking out. Homeowners’s insurance can help to pay for many emergency home repairs and even certain repairs to appliances. Health insurance is the best way to pay for medical bills, while pet insurance is worthwhile for covering vet bills. It could also be worth considering insuring important devices such as your phone or computer. 

Use the right credit card

Getting into debt to pay for emergency expenses isn’t ideal, however credit cards are usually a more convenient option than having to apply for loans, and they’re a much better alternative than having to miss bill payments and get into arrears. Take the time to compare credit cards so that you secure the best interest rates. Using credit cards mainly for smaller emergency expenses. 

Build an emergency savings fund

It’s worth setting aside some savings for a rainy day. While you may not be able to pay for some emergency expenses outright using savings, you could use savings to pay for costs like insurance deductibles and smaller emergency expenses. 

Spend money on preventative measures

Many emergency expenses can be reduced or eliminated by taking preventative measures. Looking after your health and getting preventative treatment for problems could reduce the risk of encountering emergency medical bills. Similarly looking after your car and getting problems diagnosed early could reduce the risk of having to spend money on emergency car repairs.