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8 Unfortunate Events That Can Deplete Your Savings Account

13 August 2013 4 Comments

8 Unfortunate Events That Can Deplete Your Savings AccountEvery single day, things happen to people that can shake their world and make them need to reevaluate life. In many instances, any number of things can have drastic effects on your financial situation and call for you to drain years of savings. It’s unfortunate, but it’s also uncontrollable. Here is a list of 8 things that could deplete your savings account and could potentially happen at any time.

 

Divorce

Each year, divorce becomes more prevalent in families and relationships across the nation. A divorce can have long lasting emotional effects, but it can also take a toll on your bank account as well. In order to finalize a divorce, there is much paperwork and documentation that must be filed. Plus, you may even need to hire a lawyer to determine ownership of assets or custody issues. In all, a divorce can cost you thousands of dollars and will certainly drain your savings account.

Death

The death of a loved one is never easy. This is especially true if it’s someone in your immediate family. Paying for a funeral and other arrangements is going to cost a lot of money. But if you happen to lose a significant other, that means your income has been cut in half and it’s only a matter of time before savings becomes a method of making payments. The most frustrating part about death is that you often times don’t get time to grieve, before someone comes asking for money.

Job Loss

Losing your job is an unfortunate situation with too high of a probability in the current economy. Unless you have another job lined up, losing your job can be depressing and lead you to have a lack of interest in finding a new job. Plus, depending on your qualifications, you may or may not have a difficult time finding a position. In the meantime, you’ll certainly need to have money, some of which may come from savings.

Injury

An injury can happen on the job or even in the comfort of your own home. If you suffer a serious injury, you may physically not be able to work. Not only does this mean that you won’t be getting a paycheck, but you also may need to allocate money and put it towards health bills.

Car Accident

A car accident can be life changing, depending on the severity of it. In the case that you get into a serious car accident, you may have injuries that you sustain and limit your ability to work, or even require you to spend time in the hospital. However a car accident, depending on whose fault, can also add up in terms of the cost for a personal injury lawyer, a rental vehicle, as well as increases in insurance premiums after you get everything settled.

Serious Illness

There are few less feelings that will make your heart drop into your stomach, than how you’ll feel if you get a call from a doctor saying that you have a serious illness. No family is ever ready for this and the effects can be substantially detrimental to your savings account. You will presumably have to pay for doctors’ bills, medication and more. A serious illness can drain your savings faster than most other conditions on this list and it can happen in the blink of an eye.

Natural Disaster

There is nothing you can do about a natural disaster. Unfortunately, you still may have to deal with the repercussions that can occur after one happens. If your home or family is involved in a natural disaster, there are a bevy of financial issues that may arise that will need your attention. Paying for all of them will certainly drain your savings account.

Identity Theft

Companies work hard to make sure that identity theft doesn’t happen. However, they cannot protect everyone and it still happens every single day. If someone steals your identity, they can rack up bills; take out loans in your name, and much more while pretending they are you. If this happens are and you are required to get yourself out of financial trouble, you may be left to pay for the losses out of your own bank account.

Life can change in an instant. Any of these unfortunate events will have lasting negative effects on your savings account. Prepare for the unexpected by finding ways to spend less & save more money every month!

4 Comments »

  • moneybeagle said:

    Keeping your eyes open for these events, to the extent possible, is key to eventually mitigating them should they happen.

  • Jules said:

    I try and set aside money each month to go into a specific saving account for emergencies. Or even just points where you lose your job or as you say, get sick.
    I'd say the current economy might mean I'd be looking for a job for 3-6 months at most. So to have 6 months money in reserve is real stress reliever.

  • Getresponse said:

    People should be happy if the have some saving in case something like that happen. Today even dying is expensive. I agree with your last sentence…Life can change in an instant, thats why you should live a full and happy live. You never know if you will woke up next day…

  • david smith said:

    We have to be prepared for these events as you have pointed out at the risk of losing hard-earned savings and failing to recover. it pays to be prepared for these scenarios. It happens to everyone.