Budgeting on the Fly: How to Finance an Unexpected Purchase in the New Year

Budgeting on the Fly

The new year is when most people try to spend less after a busy holiday. But bad luck can dash your dreams of saving money.

Let’s say your TV stops working the same week you have to replace your oven, fix your water heater, upgrade your furnace, and install new tires on your car. Phew — these untimely breakdowns put pressure on your budget, and their combined price tag might be more than you can afford.

If you can’t handle a big purchase (or several) at the start of the year, don’t panic. You have other options than the expendable cash in your budget.

Prioritize Your Expenses

You might feel the urgency of all expenses equally, but your life has clear priorities.

When it comes to the examples mentioned above, a furnace and water heater take precedence over a TV and oven. Yes, even an oven may not need an immediate replacement if you can get by on cold meals and items cooked with a kettle, microwave, BBQ, or toaster oven.

Put Non-Urgent Items on Hold

If you can safely live without replacing an appliance or making a repair, consider waiting to make these purchases. The longer you wait, the more time you have to save and scour the Internet for the best deals.

Sit down with your budget to find unnecessary spending. If you catch these expenses early enough, you can cancel them and scrounge up the money you need in the very same month.

Consider Taking Out Fast Loans Online

You might have a list of urgent priorities that cannot wait. Take that furnace you rely on to heat your home and keep your pipes from freezing, for example. If you live in a cold climate, you can’t afford to wait a few months to save up what you need for a repair.

When you need money ASAP, research fast loans online. Check out what makes a loan fast below, so you know what to look for:

  • Transparent Information: Legitimate online loan companies make it easy to understand their rates and terms. Some even equip their sites with accessibility widgets to ensure there are no barriers to learning about their loans.
  • Quick and Simple Applications: Virtual applications can speed up the process, so you don’t have to wait days for a human to handle paperwork.
  • Direct Deposit: Direct deposit loans also cut down on a lot of waiting, as online lenders transfer your approved funds straight to your account of choice. You won’t waste time picking up or dropping off checks or cash.

Ask About Financing Plans

Many urgent purchases tend to be expensive. Take a brand-new water heater, for example. You can spend more than $10,000 on this appliance depending on its size, fuel type, and location.

Paying $10,000 upfront can be challenging, even with a personal loan or line of credit. So, ask if you can pay it in installments. Many appliance service companies offer financing plans to help their customers handle such expensive repairs and replacements.

Some financing plans are free, but others work just like an installment loan — except, instead of paying a lender, you must pay the appliance company. Keep this in mind when you’re negotiating payments, especially if you stack this plan with an online loan.

You Have Options

It’s easy to stress out when everything goes wrong at once. But don’t panic — these tips can help take on repairs and get back to normal in no time.