Expense 3 – Appliances, tools and electronics: The reality of life is that things break. They do so frequently, often in bunches, when we least expect it, and at the most inopportune time. That’s why it’s important to be prepared for the replacement cost of critical appliances, tools, and electronics. Consider the lifespan of a typical laptop – 3 to 5 years, perhaps. Are you prepared to purchase a new computer once your current one breaks down?
Don’t forget about major appliances, such as your dishwasher or your air-conditioning unit. Would you have the money to pay for costly repairs? This is exactly what happened to someone I know: Vincent, a resident of Louisiana, had to have his a/c unit repaired and his refrigerator replaced within 2 weeks. Vincent said, “It cost me $380.00 to get my air conditioning fixed and it cost me about $1,200 for a new refrigerator. It’s a good thing I had some kind of back-up plan to pay for these things.” His plan was to save about $40 per month – and had been doing that for about five years! “Needless to say, I was glad I had the money for these expenses.”
With a little discipline to save that money every month – even though it wasn’t a whole lot of money – Vincent was able to pay for his needs without it hurting him. A little savings and preparation can go a long way.
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