Over the last year, pressure on household finances has been considerable. But even with growth beginning to return and inflation beginning to slow, money matters remain a source of stress for many. Worst are the nasty surprises we don’t anticipate, which have the potential to leave our financial plans in tatters.

Let’s take a look at six of the most common of these surprises, and consider how we might anticipate and avoid them.

Major Home Repairs

When the roof begins to leak, or the boiler breaks down, or you discover that there’s dry rot developing, the result can be an expensive one-off repair bill. But if you want the residence to remain safe, these bills are often unavoidable.

When it comes to home repair, the best strategy is often to invest in ongoing maintenance, so that major problems have less opportunity to sneak up on you.

Burglary or Property Damage

In some cases, damage to your property might be caused by another person. A burglar might break into your house while you’re out, for example, and steal your valuables. While rates of burglary in the UK are decreasing, they remain very high in some areas.

Investing in security features like cameras, alarms, and safes might reduce the likelihood and impact of break-ins. Other measures, like insurance, will also help.

Car Repairs or Replacement

A car is a complex, and often delicate, piece of machinery. It’s often one that we rely on in our professional lives. Car breakdowns can have serious financial consequences.

Preventative maintenance can help to reduce these risks, as can the right car insurance. Is gap insurance worth it? The answer depends on your circumstances and budget — but if you’re buying new and worried about negative equity, the answer is usually yes.

Interest rates on mortgage​

The era of rock-bottom interest rates is well and truly over, and doesn’t show any sign of returning. You can reduce your personal risk of an interest rate hike by agreeing to a fixed-term mortgage.

Medical Emergencies

Certain medical emergencies might not be covered by the NHS. And if it is, the quality of care you receive may not be satisfactory. This applies especially to dentistry. Looking after your health can reduce your financial risk, here — but not eliminate it.

Tax Liabilities

If you don’t understand your tax obligations, you can easily be blindsided by them. The common culprits are income tax and capital gains, especially if your income fluctuates. By getting the right financial advice ahead of time, you can stay ahead of your responsibilities.

If you’re freelancing, the best approach is often to form a close relationship with a skilled accountant.

Main Image – Photo by Karolina Grabowska: https://www.pexels.com/photo/woman-sorting-receipts-at-the-desk-at-home-5900132/