This post was contributed by Amy Nickson, a passionate writer on finance. Amy is a professional blogger whom has started her own blog and also works as a contributor for the Oak View Law Group. Please share your opinions by commenting below.

‘Probability’, ‘Risk’, ‘Ifs’, ‘Buts’, ‘Uncertainty’, these are very troubling factors in our life. When will it be a good time, or when it will run rough, we can never estimate, no matter how hard we try.

Finance and monetary issues are needed to be understood in detail to cope up with unexpected expenses in life. I always love to say, there is nothing called unexpected expense or anything as such. I believe we are not capable enough in proper money management and thus fall prey to tough financial emergencies.

We Americans are born untamed horses. We are masters and doctorates in spending, but savings?? Oh Boy! no way!

Today we will train ourselves by learning a few strategies to combat unexpected expenses that life sometimes offers us.

So what are the unexpected costs that need immediate financial attention?

They are:

• Medical emergency
• House and property damage
• Vehicle breakdown
• Road accidents or mishaps
• The demise of closed ones. That could be you too (We will talk about this later in this post)!
• Losing your job
• Children taking admission in expensive colleges
• Festivals, parties, and invitations
• Huge loss due to theft
• Overlooked debt amounts rising to a point that bankruptcy is the lone option!!

You can add other points to this list of unexpected costs that are significant and those I have missed.

Now that we are done with the listing, let’s discuss the 3 master strokes to fight any financial emergency with ease.

1. Start earning (Start the spring):

This is the first step to financial independence, for everyone.

You can’t survive in the long run with just savings. This section of my post is dedicated to all the youngsters searching for financial help.

Start to earn buddy. The just way you will get the strength to battle unexpected expenses is by making a decent income every month.

After you start to earn, make sure to hold onto your income no matter whatever happens. There may be ups and downs in your career. Never lose your hope in bad times. Never quit.

Your source of income is like a spring. It will provide you with financial security to make decisions of expense and savings.

If you don’t have an income, leave aside unexpected expenses, you won’t even be able to lead a normal low-cost life.

How will you think of a river, if you don’t have a spring?

2. Regulate your expense (Just like the river flows):

Now for everyone reading this post, can you explain to me the structure of spending?

Let me tell you it’s just like the river flows!

Rivers got tributaries, so does your expense.

You break your expenses into many zig-zag lines, some for bills, some for loans, one for grocery, one for this, one for that!

Now the problem is you are excellent in dividing your income, but may be worst in tracking them.

You forget to set dikes and levees to your expenses and therefore miss out the opportunities to save more. Your primary concern becomes necessary and luxury expenses, of little or no importance to plan for future expenses.

If you want to find a super solution to your emergency financial problems, then you will have to practice good spending habits.

You must know how to regulate your flow of cash.

Follow a budgeting strategy that helps you to save a sufficient amount, every time you receive your paycheck.

If you have become an expert in managing expenses, then let’s talk about the third and final step.

3. Build the savings (Set up the dams):

So, you’ve got the spring, you’ve got the river.

Why worry, set up the dams dear!

Just like an area needs a water back up in times of drought, so does your finance in times of expensive emergencies.

Therefore the secret is savings. But is it so? What type of savings are we talking about?

If you have multiple savings accounts, then you will find it easier to fight unexpected expenses than with one single account.

So bifurcate your savings structure. It’s like building emergency savings for every possible line of expense you can find out.

Start practicing the art of dams; block and store, block and store!

Your restaurant visits are getting high, block a couple of visits, and save the amount.

Using your car too much? Block your gas cost, and store the extra.

Like this, every month, track your flow of expense, block wherever necessary, and store the amount. Just make sure not to pile up the whole savings into one account. Break your savings just like your expenses. You will see the magic after 5 or 6 years!!

When in one account you have $10K, $5K in another, $11K somewhere else, you will feel blessed! Don’t forget to give fancy names to your savings accounts, like this is OT mama, that’s Auto papa, this is the Fire fighter, that’s the medicine man, like this.

Plus comes the INSURANCE!

It is very vital to buy suitable insurance policies. At least purchase life insurance policy. What if you just whoosh out, suddenly! How will those depended on you survive?

I would also support you in purchasing required auto insurance, health insurance, and home insurance coverage, as per your need.

These are important. It’s always said prevention is better than cure.

But the main focus should be on personal savings than insurance.

More tips to avoid unexpected expenses:

• Follow traffic rules
• Don’t drink and drive
• Eat healthily and live healthily
• Use good security systems for your home to avoid thefts

Please share your opinions by commenting below.