People Don’t Usually Save Up For These 27 Things And Face Financial Shock When They Occur

You know, in an economics course, students are told about many economic laws, and it would be worth adding a few more - the so-called “Murphy's Law.” For example, the eighth law, which says: “If everything seems to be going well, you have obviously overlooked something.” It’s incredible how many bad things could have been avoided if people had listened to these laws...

But today we’re not going to talk about that entirely. Even if our financial condition looks great today, in fact, no one can guarantee us that this will continue for a long time. And in human life, there are many expenses, both regular and unexpected, that can punch a big hole in even the most powerful family budget. You can read about everything related in this selection of ours, based on this viral thread in the AskReddit community.

More info: Reddit

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The art of managing personal finances in the turbulent contemporary world is not an easy task. It’s not for nothing that today you can find literally hundreds and thousands of master classes on this issue - and hardly a few percent of them will be truly wholesome and effective. In fact, it is unrealistic to calculate what unexpected problems may affect our financial condition, but it is quite possible to minimize their negative effect.

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“Economics is actually a pretty simple science - especially when we talk about personal finance,” says Olga Kopylova, Ph.D., associate professor of economics at Odessa National Maritime University, with whom Bored Panda got in touch for a comment here. "By and large, we are talking here about the ability to balance income and expenses, as well as proper timing for some really big expenses."

“You know, this kind of monetary logistics is to understand at what point you can afford to go into the red and when not. The ability to connect cash flows in space and time. And, of course, a clear understanding of what expenses we can afford, and which ones we can't. True, this will require not only certain knowledge, but also rational thinking, not overestimating one’s strengths and capabilities - but this is not always achievable, unfortunately," Olga summarizes.

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And, of course, we always need to take into account the possibility of so-called “black swans” - events that always come unexpectedly, have significant consequences, and then, in retrospect, rational explanations can be found for each - but only in hindsight. The concept, introduced by the writer and financier Nassim Taleb, of course, relates mainly to the macroeconomic level - of states and large corporations, but it can be extrapolated to the personal level as well.

For example, a sudden illness that will require long-term and expensive treatment also occurs suddenly, has really serious consequences, and then we'll definitely provide quite a logical basis for it - for example, “I should have quit smoking earlier!” Thus, the impact of “black swans” on our personal finances cannot be calculated, but it is possible to create a certain financial “safety cushion” to avoid the main consequences.

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We sincerely hope that you, our dear readers, will not find yourself in an unpleasant situation when your personal budget is leaking and there are no additional funds to replenish it. And if this collection of thoughts and opinions ever saves you from an unpleasant financial case - well, then our efforts were not in vain!

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Almost all the random expenses that come with home ownership. New hvac. New roof. Sewer line repair. List goes onAnything teeth relatedThey’ve done economic surveys; most Americans couldn’t afford an unexpected $1000 expense. So… just about friggin’ anything.Getting old, your body doesn't work like it used to. Ageism in the work place. Medical costHaving a baby with absolutely any health problems. Folks are starting to understand just having a kid is expensive (birth, day care, cost of the car seat, etc.), but having a diabetic toddler or a child who needs heart surgery is just off the charts. My friends from college had a baby with vision and hearing impairments. It's absolutely upended them financially. It changes who can babysit, who can/will go to doctors visits, and pretty much every part of their house has had to change. She's not even school aged yet.Vet bills. My dog has had 3 surgeries in the past 3 years. Edit: no pet insurance. All cash unfortunately. But that’s what money is for and you plan ahead for these things. If my dog wasn’t on his last few years I might do Insurance. I don’t know much about it. Edit: pet insurance it is. ?Extremely low wages for “entry level” positions that require a degree and ten years of experience.Car insurance. Don't get a ticket.Job loss. Near instant doom spiral.One I saw too often was when the husband dies, the pension stopped. It sucked helping older women find jobs, especially when they had no experience in any job. We had to provide training in soft skills, too, like showing up at an exact time.Daycare.Hospital bill. I've been to the hospital twice in the last 5 years. The first time was a long weekend in the ICU. The second was checking myself into the ER. Bill for the former? $40,0000. The latter? $17,000. Fortunately I had "good" insurance and only paid (checks notes) about 5 grand for both. Most people don't have "good" insurance or 5 grand they can drop when the guano hits the air conditioner, and I got off light.Family members with poor financial management who have emergencies and no one else to go to.DivorceLong Term Care costs. If you can't take care of yourself, you should budget about $50K-$100K a year. So many planned inheritances go up in smoke because the money they wanted to give their kids goes to their long term care. Long term care insurance is important folks. Make sure your parents have it.Not planning for retirement. Social security isn't as much money as you think, and if you don't have IRA or 401k you're planning for povertyFamily funeral.Social Security overpayments. Hello! This is the SSA, and we overpaid you $20,000 over the course of your disability. Please, pay it back in full in 30 days.Getting sick.Family member committing a serious crime.When you have zero family and friends you see that s**t hits the fan all the time. And it’s costly. You don’t realize just how often until you’re 100% on your own. Even worse when you live paycheck to paycheck. It’s nearly impossible to prepare for these kinds of things. And don’t even try to rely on anyone, it just adds bumps in the road. All you can do is save save save. Every penny counts.Living too long. It runs out.Needing a heart stent in their 40s even though they are a runner in very good shape.....and their insurance has a 10K max out of pocket. Completely hypothetical and happening on Monday.Unexpected car repair.The difference in registration and insurance when you get rid of the Buick your parents bought you in high school and the new SUV you just bought.Mortgage renewal interest ratesEscrow shortage.