Unexpected expenses are bound to happen. Cars break down, roofs leak, and faulty plumbing floods homes.
Yet 4 out of 10 adults would be unable to cover an emergency expense of $400 without borrowing money or selling possessions, according to a 2018 report from the Federal Reserve.
One way to be prepared is to build an emergency fund that is big enough to cover all of your living expenses for months so you could weather a job layoff without going into debt. You should also protect yourself by buying homeowner, health and auto insurance — among other financial products we cite in “10 Things You Need to Attain Lifelong Financial Stability.”
Following are some of life’s most unpleasant expenses that can catch you off-guard, and more strategies for coping with them.