Moving Soon? Here's How to Handle Those Pesky Unexpected Costs

You can cross all your fingers hoping your move goes smoothly, but sometimes, things happen. 

You can break a window while maneuvering the couch down the stairs, meaning you've lost that deposit you were banking on to pay for your rental truck. You could get a ticket for accidentally parking in a no-stopping zone. Or worst of all, you might hurt yourself badly enough you need to rush to the emergency room.

The list goes on, but that's not the point. What's important is how you handle these new bills during your move. Here are some ideas:

Tap into Your Emergency Fund

This is your emergency fund's time to shine. As a dedicated savings account for unexpected expenses and financial difficulties, it's designed specifically for these moving blunders. 

If you have these savings, use them. 

If you don't have an emergency fund, consider what you would have to do to build one. While it may not help you this time, it will come in handy for the next emergency. 

The standard goal for an emergency fund is three to six months' worth of your living expenses. Don't worry if you can't come up with all of it at once. Slow and steady won the race for the tortoise, and it can work for your finances, too. 

Switch up Your Budget

If you don't have savings, look to your budget for guidance. Can you cut out unnecessary spending or postpone non-essential purchases? If so, you may free up cash to pay for your moving mistakes. 

Look at variable spending habits or things that tend to fluctuate according to how much you use or buy them. After all, you can safely live without things like takeout, subscription costs, and clothing.

Take out a Short Term Loan

Slashing costs from your budget only works if you haven't already spent your money. It also relies on a budget that has a lot of discretionary spending.

If the essentials tie up most of your cash, and you have no savings, borrowing an online short term loan may give you the boost you need. 

Online short term loans are made with unexpected emergency expenses in mind, but they vary greatly depending on your credit score and location. Be sure to check out resources that compare personal installment loans to direct lender payday loans so that you can find an option that works for you.

Cash-in Your Insurances

If your emergency is an accident that caused damage to your car or home, you may consider cashing in your insurance policies to help you cover the big bill. 

There are a couple of things to keep in mind.

1. You may still have to pay a deductible. Your insurance policy may only cover a portion of the total bill, leaving you on the hook for the remaining balance. In this case, you may still need to rely on savings or online short term loans for help.

2. Your premiums may rise. Making a claim against your insurance may sometimes increase your premiums. Always check with your insurance company to see how this may impact your monthly bills.

Bottom Line

Most moves will go off without a hitch, but don't be surprised if something trips you up. These tips will help you be prepared for anything that comes your way. Happy moving!