Car expenses can’t be avoided. Unfortunately, they always seem to sneak up on people. it doesn’t have to be this way. With some expectant and preliminary financial strategies, dealing with pesky car expenses can avoid them from turning into dilemmas involving major repairs. Below is a quick look at managing car expenses.
The first way to managing car expenses over time is knowing they are inevitable: even a Porsche breaks down (and apparently, a lot). The battle requires a little time away from the car, especially when it is being repaired. But, these things can sometimes be avoided if the finances are lined up. The money is really the biggest aspect of dealing with car expenses, and knowing that they are going to come at some point takes preparation.
A nice way to handle this inevitability is to have a little part of every paycheck set aside. It takes discipline because it isn’t easy to scrape off the top of an already stretched paycheck. The money can be sifted off the top and separated, either by taking a withdrawal from the bank and putting it in a jar or moving it to a separate account entirely.
A Back-Up Account
The money can be moved into a savings account, which leads into the one thing all individuals needs- an alternative emergency fund. An emergency fund is set aside for emergencies involving medical expenses. These funds can also come into play when a car breaks down. An alternative emergency fund is more like a supplemental. It is for expenses that are expected but not all too common.
If the car broke down because it was not managed properly (oil changes, low-cost repairs), that is a shame. A basic fund for handling expected expenses involving the car and other aspects of life can be helpful.
An emergency fund should remain untouched. It doesn’t exist, and can possibly come into play if one is kicked out of their home or requiring medical expenses immediately. A second-tier emergency fund ( a little buffer room in the checking account) can help address bi-monthly expenses, such as car maintenance.