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January often feels like a fresh start, but it can also bring unexpected expenses that catch many Australians off guard. Whether it's holiday overspending, back-to-school costs, or surprise bills, these challenges can disrupt your financial plans.
The good news? Managing expenses doesn't have to be overwhelming. With the strategies and tools to help you manage unexpected expenses, you can handle these surprises and make sure you start the year on the right foot!
Many Australians may find January challenging due to a mix of seasonal and situational costs.
Some of the most common ones are:
Recognising these expenses is the first step to dealing with them effectively.
An emergency fund is your safety net for unplanned costs. If you don't have one yet, it's never too late to start! Even small contributions, like $10 a week, can grow into a buffer for future expenses. Consider setting up a separate savings account for emergencies to keep things organised.
Take a fresh look at your finances and see where you can make adjustments. For example, cutting back on non-essentials like dining out or subscriptions, especially after the festive season, can free up money to cover unexpected bills. Budgeting tools, like the Beforepay app, can make this process easier.
The average Australian saves about $742 a month, so reallocating some of this amount can help manage extra expenses.
When an unexpected expense can't wait, an urgent loan like pay advance might help bridge the gap. Beforepay’s Pay Advance feature can help you access extra funds for only a small fixed fee, providing flexibility for pressing costs. Just remember to borrow only what you need.
When juggling multiple bills, it's important to prioritise. Focus on critical expenses like rent, utilities, medical and/or school costs. Set reminders for upcoming credit card and loan repayments to help avoid or minimise any fees or interest charges. You could also consider contacting service providers to discuss extensions or flexible payment options if needed.
Having the right tools can make managing unexpected expenses less stressful. Here are some options to explore:
Dealing with unexpected expenses early in the year doesn't have to be overwhelming. By using strategies like reviewing your budget, building an emergency fund, and exploring budgeting tools, you can tackle financial surprises with confidence.
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