It’s important to save up a comfortable amount for retirement. However, there are a couple types of expenses that can derail your retirement so it doesn’t last you as long as you’d hoped. I find that most seniors find themselves in financial trouble when two types of expenses hit them.
The Two Types of Expenses
One of the expenses is medical expenses, which usually come in the form of dental expenses and prescription drug payments. The second type of expense is home repairs. Financial advisors say you should have three to six months of income in savings to apply toward emergency expenses. They call this an emergency fund, so it will be there when you need it the most.
How to Not Wipe Out Your Emergency Fund
Very often, even if you have saved the recommended amount, the medical expenses and home repairs can wipe out that cushion pretty quickly. Another unforeseen event can spell disaster if it comes too soon after the last crisis. If you find yourself in a situation where you’ve had those types of expenses come up more quickly than you can handle them, there are ways that you can get out of it without completely wiping out your emergency fund.
For medical expenses, very often your healthcare provider can set up a payment plan for you or can connect you with resources that can finance those expenses. If you contact someone in the business office, they can point you in the right direction.
For home repairs in Minnesota, depending on what county you’re in, there are programs that will help you finance those repairs very reasonably or sometimes there are volunteer resources available to actually make the repairs for you.
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