I Paid Off a Loan and Got Another Bill, Why Emergency Savings is Key

Tell a friend...Google+0Tweet about this on TwitterShare on Facebook0Pin on Pinterest4

This post is going to be a little different.

You may think I’ve got things totally under control since I’ve been able to start my own business. I mean I have a blog about making more money and saving more money.

But, things happen.

Let me know if this has happened to you.

Every-thang is coming together. You’re up-to-date on your bills. You’ve made significant payments on debt. And you’re thinking – YAY me.

Then [insert your something] happens. For us it was car issues.


Cross Electrocution Off My Bucket List

At first it was a little comical.

My car died after a dog walk (for those who don’t know dog walking is one of my side hustles) in front of the dog’s house on Memorial Day when the parents were home.

Sure, a little embarrassing, but it happens.

Thankfully, my dad was in town for the weekend and he gave me a jump. All’s well that ends well.


I wake up for my Tuesday dog walk appointments. Try to turn on the engine. No dice. At this point, I’m a little anxious because my favorite doggy may go wee wee on himself in his crate.

Fortunately, I’m able to get a jump from someone in my parking garage although I got slightly electrocuted. But no worries, my dad said it’s only 12 volts. I do the customary 30 minute drive to charge the battery which I didn’t do after the first jump. Silly me.

I was good for the rest of the day. I even stopped by the auto repair shop for a full battery charge and really hoped that would solve the problem.

However, the car died again IN THE SAME MEMORIAL DAY SPOT.

Thankfully, the dog’s parents weren’t home this time. How awkward would that be if they were. I would have honestly hid my car in bushes, walked 5 miles home, and begged my dad to let me use his AAA.

But the practical me asked some landscapers down the street for a jump. Then, after not being able to start my car AGAIN after the next walk I asked another nice stranger for some help.

So, thank you good samaritans of Montgomery County, MD your engines saved me.

Plan for “Emergencies”

To make a longer story a little shorter … it cost $960 to repair the battery issue.

The joy of making my last student loan payment (even though it was a month behind schedule) was overshadowed by an insanely large new bill. Booo.

But you now what?

It’s life. It’s all how you prepare for it and handle it. Honestly, we didn’t prepare for it well. I chalked this event up to being an emergency expense and prepared to dip into savings to pay for it. I mean, it’s something we couldn’t have planned for, right?

Not necessarily.

I did more research on what emergency savings should be used for and noticed that I made an error in my budget calculation. Car repair expenses should be expected throughout the year. If we had budgeted for it, this little surprise would probably have caused less shock (and 20 straight minutes of whining.)

So think, are you budgeting for annual expenses? Like car, home, or health maintenance? If not, get on it! Especially if you’re planning to take your independent business full-time. When the checks aren’t coming in, you’ll need to have some money saved up to pay the bills.

Dealing With Large Unexpected Expenses

What should you do when these large expenses pop up?

Woo sah first of all. Remember that you make and save money for a reason – for survival.

Think of the reason that you’re feeling down about the bill.

Is it because you don’t have the money or would really rather spend it on something else? If you think about money in terms of it maintaining basic needs and allowing you to provide for your family you may feel a little more positive about it.

The thought of paying that bill this month makes me cringe, however I know it’s for something necessary.

So, are we perfect with our budget planning? No, but we’re trying hard every day especially since my income is now variable.

— This post or page may contain affiliate links. Don’t worry, though. I only promote products that I’ve used or truly believe in.

Grab the "How to Save Money When You Feel Broke as Hell" checklist

Subscribe to get a nifty checklist and to get weekly Tay Talks Money Insider emails on saving, making more money, and being productive... booyah!

Powered by ConvertKit

Taylor K. Gordon is a writer and money blogger. She writes on how to live your best life without going broke.

  1. Reply TheBrokeProfessional June 5, 2014 at 10:31 am

    Great post. Car stuff is annoying, but they to happen to everyone at some point. We should also budget in preventative car costs. It’s a good idea to get $50 oil changes every few months rather than paying thousands of dollars for a new engine down the road.

    • Reply Taylor June 6, 2014 at 9:13 am

      Thanks your totally right! A simple oil change is actually how my brother killed our old faithful family car LOL. Annoying but a necessary evil.

  2. Reply Rich Uncle EL June 6, 2014 at 10:17 am

    Good Move to make a plan for unexpected future expenses. Car issues are the worst because you just want the car to be reliable. I forget sometimes its a machine that needs some TLC from time to time. Good Luck and avoid touching batteries.

    • Reply Taylor June 7, 2014 at 11:20 am

      Thanks! Cars definitely need TLC and I have to remember that. Lesson learned – keep the positive very far away from the negative.

  3. Reply Diamonds in the Rough Roundup 6/5/14 - The Broke Professional June 6, 2014 at 12:51 pm

    […] -We Paid Off My Student Loan!-and then got a $1,000 bill by TrendyCheapo:  In our never ending quest of debt repayment, there are always bumps along the way.  You just have to be ready for them.  This post provides a good example of that. […]

  4. Reply 13 Easy Ways To Make Extra Money & More! - Financial Carn. for Young Adults - i need money ASAP! | i need money ASAP! June 7, 2014 at 3:55 pm

    […] @ Trendy Cheapo writes We Paid Off My Student Loan – And Then Got a $1,000 Bill – Has a big unexpected expense burst your bubble? Here’s how to […]

Leave a Reply